[quote=livinincali]I think there’s a couple points here to consider.
Tax policy in CA certainly encourages inherited properties to be kept within the family either via heirs moving into the property or as a rental.
I’m not entirely convinced that in 10 to 20 years that we could see significant owner user communities turn into mostly renter communities for a couple of reasons.
1) I just don’t think the market for dated 3/2 smaller properties at @ $2500+/mo is really that deep.
2) I think some significantly portion of properties will get the equity striped out via reverse mortgage or some other means.
3) I think this next generation that inherits these properties may want the instant gratification of selling rather than land-lording even though it might be in their long term interest to do so.
The last point is that there is a significant number of likely dated properties that could potentially hit the market over the next 10-20 years. Might be a flippers dream come true or it might just mean appreciation going forward in housing is much more limited than people are currently considering.[/quote]
Agree with this.
And we can’t forget the foreign investors who were speculating on U.S. real estate because they had so much money from their own countries, thanks to their own central banks and governments. If their economies crash, this could have a major effect on U.S. real estate.
