The thing about rents going up, is that they can go up all they want, it won't affect both the pool of people willing to buy, nor will it affect the chance that investors will jump into the rental market because it's a no-brainer money maker.
?
As rents go up, people "group-up". ?
Find roomates and room shares situation to lessen thier burden.
Renters move in with parents or relatives removing them from the renter pool.
?
This doesn't happen in a house buying situation. ?Buyers facing rising house prices don't "group-up", they just benefit from lower mortgage rates.
?
Rents can topple real quick in this situation.
?
They can also topple with a couple quarters of stagnent economy, or restrictions on lending which would reduce the amount of start-up capitol, removing jobs. ?Also job losses tend to snowball. ?One company goes under or goes through a round of lay-offs, others follow, and rents tumble.
?
This can impact the housing markets. ?Recently one of the largest hedge fund investors who was buying up real estate for rental purposes concluded it was a losing situation, even in the face of rising rents. ?Since prices are way up, and inventories low, these could hit the market and pull prices down. ?It all remains to be seen.
Source: http://forums.redfin.com/t5/Bay-Area/Bay-Area-rents-home-prices-up-sharply/m-p/391247
freedom tower eric church world trade center quick silver where have you been rihanna kirk cousins mothers day
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.