With more and more people losing their homes, do you wonder where they will go? An apartment maybe, or I’ve heard of people walking away from their mortgages because they can rent a nicer home for half the price they were paying to own….
So my next question is who is making money right now? The rental owners or the banks with mortgages? The banks are working hard to correct their balance sheets but the investors in rental property are where the money is, and will be for a while.
I’m wondering where this is all heading. I would like to sell my home to upgrade in acreage but I’m caught in the same trap as the majority of people these days. But the smart people are always the ones to take advantage of a crisis. I want to be one of those people and I want to know all of my options.
Buying houses now, that sometimes cost less than when they did brand spanking new 4 years ago, is where the economy seems to be going. Those who were financially strong through the boom, and continued to keep financial stability during the bust, are the ones who are snapping up properties now. Especially if you realize that people have to live somewhere, the affordable investment is more secure than the 401k or IRA of last year.
The rental investor can offer such competitive rates and of course there is demand. Any industry that people create wealth in has to have a demand and investors able to take advantage of the situation. Of course, the demand stems from home owners not able to keep their investment but still needing a home and DESIRING a nice home to live in.
The investors with the courage to snap up short sales and foreclosures for 50% (or less) of their value will continue to make a profit for years to come. With the affordable prices, they are gaining a real estate asset immediately. With demand, the business model is a sure bet. With desirability, they are proud of where their money is parked.
Affordable. Demand. Desirable. Today wealth isn’t created like the automobile industry at the turn of the century or even the computer industry in the 1990’s, it is real estate. Where will your investment be tomorrow?
Me? I’m thinking it is time to quit my relationship with Wall Street and channel my funds into making my home a rental property. I have been a landlord before and it is a huge responsibility. At least it is if you don’t want to be a slum-lord. But, my husband and I are looking at our options. If we can’t sell our home for what we owe maybe we should rent it. We have been approached by rental opportunities but we were wary. I think it is definitely time to come up with a game plan and pursue this path.
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