INVESTORS, RENTALS AND HOUSING RECOVERY
Okay, so I just LOVE how the media is picking up REAL ESTATE stories right now. They seem to be addressing some of the issues, but not the cause and effect of the things that are happening.
This article on CNBC seems to do a pretty good job of exploring the whole enchilada, so to speak. (Goodness, I miss that restaurant.) It starts out by suggesting that investors are the solution to this housing crisis that we are experiencing. And then goes on to say that unfortunately the investors seem to be pulling back. WOW, REALLY? I just did a blog last week on the very topic in California.
The statistics, especially for California are that the all cash and the non-owner occupied purchases are on the decline in a big way. And as this article points out, it can be attributed to a couple of different things; one being the extra rules placed on these homes and another is the fact that right now buyers are on the decline, period.
Diana, the author of this article, suggests that quite possibly investors should start looking to the long-term. Instead of flipping homes, they should think about renting since the rents are on the upswing and the rental inventory is going down really fast. I know in my area, there are many short sales that have tenants in them that would love nothing better than to stay and keep renting. Voila, instant income! And it's extremely hard to find a buyer that will allow this to happen right now.
So Diana says that we should take the extra rules off of investors and make it easy for them to purchase and rent. Maybe that will get their mind off that instant payoff of flipping. This coupled with proposed breaks for them just may put the real estate market back on track.
Of course, you really know, it's all about jobs...
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Linda K. Mayer, Realtor, SRES
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