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carlsbadworker.
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May 27, 2008 at 8:13 AM #212051May 27, 2008 at 9:01 AM #211948
cv2
Participant”
3) LL’s NEED more rent. I have a family member who bought a rental at the height of the market. (I all but held him a knife point not to) The rent he gets was about $750 cash negative. Now he can afford it no prob, but doesnt want to. So with every renewal he ups it $50-$100 or more, whatever the market will bear, to get to breaking even. He can afford it, just think about all those that in all reality, cant. Talk about motivation to increase rents.
”I can attest to that. In my complex, the going rate is about $1,600/month but you would find some LLs advertise for $2,000 on craigslist.
My theory is that rental market is very local. LL figured out that every greedy LL united to hike the price and eventually every properties in the neighbourhood will be offered at $2,000. Somebody got to start this thing because all LL are bleeding to a slow death.
May 27, 2008 at 9:01 AM #212020Participant”
3) LL’s NEED more rent. I have a family member who bought a rental at the height of the market. (I all but held him a knife point not to) The rent he gets was about $750 cash negative. Now he can afford it no prob, but doesnt want to. So with every renewal he ups it $50-$100 or more, whatever the market will bear, to get to breaking even. He can afford it, just think about all those that in all reality, cant. Talk about motivation to increase rents.
”I can attest to that. In my complex, the going rate is about $1,600/month but you would find some LLs advertise for $2,000 on craigslist.
My theory is that rental market is very local. LL figured out that every greedy LL united to hike the price and eventually every properties in the neighbourhood will be offered at $2,000. Somebody got to start this thing because all LL are bleeding to a slow death.
May 27, 2008 at 9:01 AM #212049Participant”
3) LL’s NEED more rent. I have a family member who bought a rental at the height of the market. (I all but held him a knife point not to) The rent he gets was about $750 cash negative. Now he can afford it no prob, but doesnt want to. So with every renewal he ups it $50-$100 or more, whatever the market will bear, to get to breaking even. He can afford it, just think about all those that in all reality, cant. Talk about motivation to increase rents.
”I can attest to that. In my complex, the going rate is about $1,600/month but you would find some LLs advertise for $2,000 on craigslist.
My theory is that rental market is very local. LL figured out that every greedy LL united to hike the price and eventually every properties in the neighbourhood will be offered at $2,000. Somebody got to start this thing because all LL are bleeding to a slow death.
May 27, 2008 at 9:01 AM #212071Participant”
3) LL’s NEED more rent. I have a family member who bought a rental at the height of the market. (I all but held him a knife point not to) The rent he gets was about $750 cash negative. Now he can afford it no prob, but doesnt want to. So with every renewal he ups it $50-$100 or more, whatever the market will bear, to get to breaking even. He can afford it, just think about all those that in all reality, cant. Talk about motivation to increase rents.
”I can attest to that. In my complex, the going rate is about $1,600/month but you would find some LLs advertise for $2,000 on craigslist.
My theory is that rental market is very local. LL figured out that every greedy LL united to hike the price and eventually every properties in the neighbourhood will be offered at $2,000. Somebody got to start this thing because all LL are bleeding to a slow death.
May 27, 2008 at 9:01 AM #212101Participant”
3) LL’s NEED more rent. I have a family member who bought a rental at the height of the market. (I all but held him a knife point not to) The rent he gets was about $750 cash negative. Now he can afford it no prob, but doesnt want to. So with every renewal he ups it $50-$100 or more, whatever the market will bear, to get to breaking even. He can afford it, just think about all those that in all reality, cant. Talk about motivation to increase rents.
”I can attest to that. In my complex, the going rate is about $1,600/month but you would find some LLs advertise for $2,000 on craigslist.
My theory is that rental market is very local. LL figured out that every greedy LL united to hike the price and eventually every properties in the neighbourhood will be offered at $2,000. Somebody got to start this thing because all LL are bleeding to a slow death.
May 27, 2008 at 9:29 AM #211959bjensen
ParticipantWhile I sympathize with your family’s situation, I have no soft spot in my heart for people who bought rental property without considering if they would cash flow positive in the near term.
And now, from what you said, are trying to collude with their fellow landlords to have their tenants absorb the losses? I hope tenants move out of the neighborhood in droves and leave the real estate “investors” to hold the bag.
A little due diligence would have kept away any savvy investor in the past few years. In fact it seems like there are quite a few people here on Piggington that are waiting for properties that cash flow.
May 27, 2008 at 9:29 AM #212030ParticipantWhile I sympathize with your family’s situation, I have no soft spot in my heart for people who bought rental property without considering if they would cash flow positive in the near term.
And now, from what you said, are trying to collude with their fellow landlords to have their tenants absorb the losses? I hope tenants move out of the neighborhood in droves and leave the real estate “investors” to hold the bag.
A little due diligence would have kept away any savvy investor in the past few years. In fact it seems like there are quite a few people here on Piggington that are waiting for properties that cash flow.
May 27, 2008 at 9:29 AM #212059ParticipantWhile I sympathize with your family’s situation, I have no soft spot in my heart for people who bought rental property without considering if they would cash flow positive in the near term.
And now, from what you said, are trying to collude with their fellow landlords to have their tenants absorb the losses? I hope tenants move out of the neighborhood in droves and leave the real estate “investors” to hold the bag.
A little due diligence would have kept away any savvy investor in the past few years. In fact it seems like there are quite a few people here on Piggington that are waiting for properties that cash flow.
May 27, 2008 at 9:29 AM #212082ParticipantWhile I sympathize with your family’s situation, I have no soft spot in my heart for people who bought rental property without considering if they would cash flow positive in the near term.
And now, from what you said, are trying to collude with their fellow landlords to have their tenants absorb the losses? I hope tenants move out of the neighborhood in droves and leave the real estate “investors” to hold the bag.
A little due diligence would have kept away any savvy investor in the past few years. In fact it seems like there are quite a few people here on Piggington that are waiting for properties that cash flow.
May 27, 2008 at 9:29 AM #212112ParticipantWhile I sympathize with your family’s situation, I have no soft spot in my heart for people who bought rental property without considering if they would cash flow positive in the near term.
And now, from what you said, are trying to collude with their fellow landlords to have their tenants absorb the losses? I hope tenants move out of the neighborhood in droves and leave the real estate “investors” to hold the bag.
A little due diligence would have kept away any savvy investor in the past few years. In fact it seems like there are quite a few people here on Piggington that are waiting for properties that cash flow.
May 27, 2008 at 1:32 PM #212163(former)FormerSanDiegan
ParticipantWhat could cause a rental bubble ?
It’s not as though speculation would lead to higher rents.
What mechanism could cause a bubble in rent ?It seems to me that rent is probably more firmly grounded in market fundamentals than prices. That goes for both commercial and residential. It’s driven by supply and demand.
As for the discrepancy in incomes and rents, doesn’t the 17% increase from 2000 to 2001 seem suspect ? Especially for the start of a recession. It seems to me that we need a longer time frame of data to make sense of this. Most of the “bubble” in rents is attributed to this strange jump. Perhaps the metric changed or they use models and adjust it with census data.
May 27, 2008 at 1:32 PM #212237ParticipantWhat could cause a rental bubble ?
It’s not as though speculation would lead to higher rents.
What mechanism could cause a bubble in rent ?It seems to me that rent is probably more firmly grounded in market fundamentals than prices. That goes for both commercial and residential. It’s driven by supply and demand.
As for the discrepancy in incomes and rents, doesn’t the 17% increase from 2000 to 2001 seem suspect ? Especially for the start of a recession. It seems to me that we need a longer time frame of data to make sense of this. Most of the “bubble” in rents is attributed to this strange jump. Perhaps the metric changed or they use models and adjust it with census data.
May 27, 2008 at 1:32 PM #212264ParticipantWhat could cause a rental bubble ?
It’s not as though speculation would lead to higher rents.
What mechanism could cause a bubble in rent ?It seems to me that rent is probably more firmly grounded in market fundamentals than prices. That goes for both commercial and residential. It’s driven by supply and demand.
As for the discrepancy in incomes and rents, doesn’t the 17% increase from 2000 to 2001 seem suspect ? Especially for the start of a recession. It seems to me that we need a longer time frame of data to make sense of this. Most of the “bubble” in rents is attributed to this strange jump. Perhaps the metric changed or they use models and adjust it with census data.
May 27, 2008 at 1:32 PM #212286ParticipantWhat could cause a rental bubble ?
It’s not as though speculation would lead to higher rents.
What mechanism could cause a bubble in rent ?It seems to me that rent is probably more firmly grounded in market fundamentals than prices. That goes for both commercial and residential. It’s driven by supply and demand.
As for the discrepancy in incomes and rents, doesn’t the 17% increase from 2000 to 2001 seem suspect ? Especially for the start of a recession. It seems to me that we need a longer time frame of data to make sense of this. Most of the “bubble” in rents is attributed to this strange jump. Perhaps the metric changed or they use models and adjust it with census data.
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