Will rents create a price floor despite the mini rental bubble?

[cv2]

Companies use the current crisis as excuses to get rid of their older workers and this forces lots of baby boomers to lose their jobs. For the most of them, they have no choice but to sell their homes to get as much as money they could and go either downsize, renting or moving to cheaper places. I am already seeing this is happening to my colleagues.

I think, as a result of this and the sheer number of baby boomers, will put a downward pressure on both home prices and rentals. Coupled with “doubling up” for younger generations, this is “historical”.

[scaredyclassic]

this is entirely anecondotal (single anecdote0 but I know an extremely credit unworthy unemployed person with virtually zero assets and a similarly situated boyfriend moving to a fancy rental house in san diego that they cannot afford unless some miracle happens. What si the LL thinking? What are they thinking? not sure? it think they think, well, live for the day, maybe things will get better. maybe the LL is getting forecloed on or has no other ofers, who knows. i wouldnt rent to her , and i like her. the LL wiolla almost certainly no t get paid ont his one. is this happening all over?

[scaredyclassic]

this is entirely anecondotal (single anecdote0 but I know an extremely credit unworthy unemployed person with virtually zero assets and a similarly situated boyfriend moving to a fancy rental house in san diego that they cannot afford unless some miracle happens. What si the LL thinking? What are they thinking? not sure? it think they think, well, live for the day, maybe things will get better. maybe the LL is getting forecloed on or has no other ofers, who knows. i wouldnt rent to her , and i like her. the LL wiolla almost certainly no t get paid ont his one. is this happening all over?

[scaredyclassic]

this is entirely anecondotal (single anecdote0 but I know an extremely credit unworthy unemployed person with virtually zero assets and a similarly situated boyfriend moving to a fancy rental house in san diego that they cannot afford unless some miracle happens. What si the LL thinking? What are they thinking? not sure? it think they think, well, live for the day, maybe things will get better. maybe the LL is getting forecloed on or has no other ofers, who knows. i wouldnt rent to her , and i like her. the LL wiolla almost certainly no t get paid ont his one. is this happening all over?

[scaredyclassic]

this is entirely anecondotal (single anecdote0 but I know an extremely credit unworthy unemployed person with virtually zero assets and a similarly situated boyfriend moving to a fancy rental house in san diego that they cannot afford unless some miracle happens. What si the LL thinking? What are they thinking? not sure? it think they think, well, live for the day, maybe things will get better. maybe the LL is getting forecloed on or has no other ofers, who knows. i wouldnt rent to her , and i like her. the LL wiolla almost certainly no t get paid ont his one. is this happening all over?

[scaredyclassic]

this is entirely anecondotal (single anecdote0 but I know an extremely credit unworthy unemployed person with virtually zero assets and a similarly situated boyfriend moving to a fancy rental house in san diego that they cannot afford unless some miracle happens. What si the LL thinking? What are they thinking? not sure? it think they think, well, live for the day, maybe things will get better. maybe the LL is getting forecloed on or has no other ofers, who knows. i wouldnt rent to her , and i like her. the LL wiolla almost certainly no t get paid ont his one. is this happening all over?

[bjensen]

I haven’t seen what you describe scaredycat, but I have seen a lot of properties that have been holding out for higher rent for the better part of 2009. Perhaps the LL thinks he has found a sucker willing to pay for what he is asking in rent. Little does he know, he won’t see a dime. It’s like other posters have mentioned about LL’s wanting top dollar and renters above reproach. It appears like it is very difficult to get both.

On another note, I have seen quite a few condos where they haven’t rented since they purchased the property late last year and are holding out for that 1 renter that will actually cover the mortgage. It’s really quite funny. Especially since the same type units can be purchased today at a price that appears to cash flow positive from day one.

[bjensen]

I haven’t seen what you describe scaredycat, but I have seen a lot of properties that have been holding out for higher rent for the better part of 2009. Perhaps the LL thinks he has found a sucker willing to pay for what he is asking in rent. Little does he know, he won’t see a dime. It’s like other posters have mentioned about LL’s wanting top dollar and renters above reproach. It appears like it is very difficult to get both.

On another note, I have seen quite a few condos where they haven’t rented since they purchased the property late last year and are holding out for that 1 renter that will actually cover the mortgage. It’s really quite funny. Especially since the same type units can be purchased today at a price that appears to cash flow positive from day one.

[bjensen]

I haven’t seen what you describe scaredycat, but I have seen a lot of properties that have been holding out for higher rent for the better part of 2009. Perhaps the LL thinks he has found a sucker willing to pay for what he is asking in rent. Little does he know, he won’t see a dime. It’s like other posters have mentioned about LL’s wanting top dollar and renters above reproach. It appears like it is very difficult to get both.

On another note, I have seen quite a few condos where they haven’t rented since they purchased the property late last year and are holding out for that 1 renter that will actually cover the mortgage. It’s really quite funny. Especially since the same type units can be purchased today at a price that appears to cash flow positive from day one.

[bjensen]

I haven’t seen what you describe scaredycat, but I have seen a lot of properties that have been holding out for higher rent for the better part of 2009. Perhaps the LL thinks he has found a sucker willing to pay for what he is asking in rent. Little does he know, he won’t see a dime. It’s like other posters have mentioned about LL’s wanting top dollar and renters above reproach. It appears like it is very difficult to get both.

On another note, I have seen quite a few condos where they haven’t rented since they purchased the property late last year and are holding out for that 1 renter that will actually cover the mortgage. It’s really quite funny. Especially since the same type units can be purchased today at a price that appears to cash flow positive from day one.

[bjensen]

I haven’t seen what you describe scaredycat, but I have seen a lot of properties that have been holding out for higher rent for the better part of 2009. Perhaps the LL thinks he has found a sucker willing to pay for what he is asking in rent. Little does he know, he won’t see a dime. It’s like other posters have mentioned about LL’s wanting top dollar and renters above reproach. It appears like it is very difficult to get both.

On another note, I have seen quite a few condos where they haven’t rented since they purchased the property late last year and are holding out for that 1 renter that will actually cover the mortgage. It’s really quite funny. Especially since the same type units can be purchased today at a price that appears to cash flow positive from day one.

[cv2]

In my complex, lots of LL are in NOD or later. That means that they have taken the rent but did not pay their expenses, such as Mortgage, HOA fees and property taxes. Of course they do not care who is renting as long as he can squeeze the last penny out of this “investment”. Actually I think they would prefer people with less perfect records because those people will unlikely come after them when the home got foreclosed.

[cv2]

In my complex, lots of LL are in NOD or later. That means that they have taken the rent but did not pay their expenses, such as Mortgage, HOA fees and property taxes. Of course they do not care who is renting as long as he can squeeze the last penny out of this “investment”. Actually I think they would prefer people with less perfect records because those people will unlikely come after them when the home got foreclosed.

[cv2]

In my complex, lots of LL are in NOD or later. That means that they have taken the rent but did not pay their expenses, such as Mortgage, HOA fees and property taxes. Of course they do not care who is renting as long as he can squeeze the last penny out of this “investment”. Actually I think they would prefer people with less perfect records because those people will unlikely come after them when the home got foreclosed.

[cv2]

In my complex, lots of LL are in NOD or later. That means that they have taken the rent but did not pay their expenses, such as Mortgage, HOA fees and property taxes. Of course they do not care who is renting as long as he can squeeze the last penny out of this “investment”. Actually I think they would prefer people with less perfect records because those people will unlikely come after them when the home got foreclosed.

[Author]

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