I used to project rental increases in proformas when I was buying…now I’d have to project rent decreases, just destroys feasibility.
What is a fair risk premium to invest in a depreciating rent market?
I agree with Scaredycat: I would need a risk premium (= 10 CAP at least) before I would buy an investment rental, market now offers maybe 5-6 CAP.
As for personal residence, yes it’s nice not to have my landlord threaten to list my rental home for sale, I’ll probably bottom fish something sooner or later.
Future real estate markets may bear little relation to what we have grown accustomed to so watch out and good luck to all!
