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November 3, 2008 at 6:52 PM #14364November 3, 2008 at 7:03 PM #297719nostradamusParticipant
I was reading in this article (posted by huckleberry) that at the peak of the recent bubble, 40% of homes bought were investment homes. That’s point 1.
Point 2 is, since many people (with no money) were using 0-down to buy multiple properties, this caused an artificial demand which in turn helped home prices to go up.
Point 3 is I haven’t heard of any bailouts which help owners keep investment homes. I’ll bet a lot of them have to be let go. Foreclosed.
I think owners may try to jack up the rent in hopes of breaking even with their mortgage payments, then slowly ratchet down the prices until they finally can’t cash flow and must walk.
Question 1: Has anyone heard of any type of bailout or loan re-modification to prevent foreclosures on an investment (rental) property?
Question 2: Does anyone know any solid numbers on how many investment (rental) properties are out there, and how many of those are in distress?
November 3, 2008 at 7:03 PM #298141nostradamusParticipantI was reading in this article (posted by huckleberry) that at the peak of the recent bubble, 40% of homes bought were investment homes. That’s point 1.
Point 2 is, since many people (with no money) were using 0-down to buy multiple properties, this caused an artificial demand which in turn helped home prices to go up.
Point 3 is I haven’t heard of any bailouts which help owners keep investment homes. I’ll bet a lot of them have to be let go. Foreclosed.
I think owners may try to jack up the rent in hopes of breaking even with their mortgage payments, then slowly ratchet down the prices until they finally can’t cash flow and must walk.
Question 1: Has anyone heard of any type of bailout or loan re-modification to prevent foreclosures on an investment (rental) property?
Question 2: Does anyone know any solid numbers on how many investment (rental) properties are out there, and how many of those are in distress?
November 3, 2008 at 7:03 PM #298094nostradamusParticipantI was reading in this article (posted by huckleberry) that at the peak of the recent bubble, 40% of homes bought were investment homes. That’s point 1.
Point 2 is, since many people (with no money) were using 0-down to buy multiple properties, this caused an artificial demand which in turn helped home prices to go up.
Point 3 is I haven’t heard of any bailouts which help owners keep investment homes. I’ll bet a lot of them have to be let go. Foreclosed.
I think owners may try to jack up the rent in hopes of breaking even with their mortgage payments, then slowly ratchet down the prices until they finally can’t cash flow and must walk.
Question 1: Has anyone heard of any type of bailout or loan re-modification to prevent foreclosures on an investment (rental) property?
Question 2: Does anyone know any solid numbers on how many investment (rental) properties are out there, and how many of those are in distress?
November 3, 2008 at 7:03 PM #298080nostradamusParticipantI was reading in this article (posted by huckleberry) that at the peak of the recent bubble, 40% of homes bought were investment homes. That’s point 1.
Point 2 is, since many people (with no money) were using 0-down to buy multiple properties, this caused an artificial demand which in turn helped home prices to go up.
Point 3 is I haven’t heard of any bailouts which help owners keep investment homes. I’ll bet a lot of them have to be let go. Foreclosed.
I think owners may try to jack up the rent in hopes of breaking even with their mortgage payments, then slowly ratchet down the prices until they finally can’t cash flow and must walk.
Question 1: Has anyone heard of any type of bailout or loan re-modification to prevent foreclosures on an investment (rental) property?
Question 2: Does anyone know any solid numbers on how many investment (rental) properties are out there, and how many of those are in distress?
November 3, 2008 at 7:03 PM #298067nostradamusParticipantI was reading in this article (posted by huckleberry) that at the peak of the recent bubble, 40% of homes bought were investment homes. That’s point 1.
Point 2 is, since many people (with no money) were using 0-down to buy multiple properties, this caused an artificial demand which in turn helped home prices to go up.
Point 3 is I haven’t heard of any bailouts which help owners keep investment homes. I’ll bet a lot of them have to be let go. Foreclosed.
I think owners may try to jack up the rent in hopes of breaking even with their mortgage payments, then slowly ratchet down the prices until they finally can’t cash flow and must walk.
Question 1: Has anyone heard of any type of bailout or loan re-modification to prevent foreclosures on an investment (rental) property?
Question 2: Does anyone know any solid numbers on how many investment (rental) properties are out there, and how many of those are in distress?
November 3, 2008 at 7:11 PM #298072barnaby33ParticipantHawaii in particular is very susceptible to the tourism market. Its the dominant industry there (apart from the government.) My aunt and uncle live on Oahu and have mentioned several times that housing costs are coming down, but they were referring to ownership. I’d imagine that the rental market there tracks pretty well with the tourism industry and that can’t be booming right now.
JoshNovember 3, 2008 at 7:11 PM #298085barnaby33ParticipantHawaii in particular is very susceptible to the tourism market. Its the dominant industry there (apart from the government.) My aunt and uncle live on Oahu and have mentioned several times that housing costs are coming down, but they were referring to ownership. I’d imagine that the rental market there tracks pretty well with the tourism industry and that can’t be booming right now.
JoshNovember 3, 2008 at 7:11 PM #298099barnaby33ParticipantHawaii in particular is very susceptible to the tourism market. Its the dominant industry there (apart from the government.) My aunt and uncle live on Oahu and have mentioned several times that housing costs are coming down, but they were referring to ownership. I’d imagine that the rental market there tracks pretty well with the tourism industry and that can’t be booming right now.
JoshNovember 3, 2008 at 7:11 PM #297724barnaby33ParticipantHawaii in particular is very susceptible to the tourism market. Its the dominant industry there (apart from the government.) My aunt and uncle live on Oahu and have mentioned several times that housing costs are coming down, but they were referring to ownership. I’d imagine that the rental market there tracks pretty well with the tourism industry and that can’t be booming right now.
JoshNovember 3, 2008 at 7:11 PM #298146barnaby33ParticipantHawaii in particular is very susceptible to the tourism market. Its the dominant industry there (apart from the government.) My aunt and uncle live on Oahu and have mentioned several times that housing costs are coming down, but they were referring to ownership. I’d imagine that the rental market there tracks pretty well with the tourism industry and that can’t be booming right now.
JoshNovember 4, 2008 at 6:23 AM #298390EconProfParticipantRental markets are dependent on local conditions, so I cannot comment on the Hawaiian situation, but my recent experience in San Diego suggests it is weak here.
I had remarkably low response to my aggressive marketing of a University Heights/Normal Heights house. Quickly lowered the rent & have a likely tenant as I believe in quickly adjusting to market realities. Noticed a lot of competing houses languishing on the market for a long time.
Prospective landlords should lower their revenue expectations in recognition of the deflationary environment we are in, at least for high/middle range houses.November 4, 2008 at 6:23 AM #298344EconProfParticipantRental markets are dependent on local conditions, so I cannot comment on the Hawaiian situation, but my recent experience in San Diego suggests it is weak here.
I had remarkably low response to my aggressive marketing of a University Heights/Normal Heights house. Quickly lowered the rent & have a likely tenant as I believe in quickly adjusting to market realities. Noticed a lot of competing houses languishing on the market for a long time.
Prospective landlords should lower their revenue expectations in recognition of the deflationary environment we are in, at least for high/middle range houses.November 4, 2008 at 6:23 AM #298331EconProfParticipantRental markets are dependent on local conditions, so I cannot comment on the Hawaiian situation, but my recent experience in San Diego suggests it is weak here.
I had remarkably low response to my aggressive marketing of a University Heights/Normal Heights house. Quickly lowered the rent & have a likely tenant as I believe in quickly adjusting to market realities. Noticed a lot of competing houses languishing on the market for a long time.
Prospective landlords should lower their revenue expectations in recognition of the deflationary environment we are in, at least for high/middle range houses.November 4, 2008 at 6:23 AM #297968EconProfParticipantRental markets are dependent on local conditions, so I cannot comment on the Hawaiian situation, but my recent experience in San Diego suggests it is weak here.
I had remarkably low response to my aggressive marketing of a University Heights/Normal Heights house. Quickly lowered the rent & have a likely tenant as I believe in quickly adjusting to market realities. Noticed a lot of competing houses languishing on the market for a long time.
Prospective landlords should lower their revenue expectations in recognition of the deflationary environment we are in, at least for high/middle range houses. -
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