ilivehere
Posts:128
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| 09/23/2008 10:02 AM |
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| Time to buy foreclosure's.. Cash flow positive and no shortage of renters. The cycle starts all over again. |
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Brian
Posts:2210
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Brian
Posts:2210
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| 09/23/2008 1:26 PM |
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lurknomore, I don't see you giving ilivehere a hard time here
like you gave me for coming up to a conclusion that is unsupported by the reference.
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lurknomore
Posts:270
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| 09/23/2008 1:42 PM |
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| When (s)he gets closer to 1739 arrogant posts, I'll consider it. Right now it's 1739 (or more--it's hard to keep up with you) vs. 47. |
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lurknomore
Posts:270
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| 09/23/2008 1:44 PM |
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| I'd be willing to put it to a vote, but my gut sense is that you and LoonyQT are most in need of re-education. |
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wilson
Posts:541
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| 09/23/2008 1:47 PM |
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| ilivehere has just called a buy signal!!!!!!!!!!!!!!!!!!!!!!!!!! |
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ilivehere
Posts:128
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| 09/23/2008 4:10 PM |
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to all-
A little background on me, take nothing I say seriously, take some things I say seriously, no really, form your own opinions and just do what is best for your own situatation.
brian-
It just makes sense to me that if homeownership is going down then renting must be going up. Seems logical to me.
Wilson-
Let me clarify, buy foreclosures where you will have a positive cash flow. I didn't say buy everything. Can someone buy me a beer?
lurknomore-
thank you for not jumping all over my case. i didn't think my post was too far off the mark? does brian reall have around 1500 posts? where do you see those stats?
cheers |
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BGinRB
Posts:65
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| 09/23/2008 4:46 PM |
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The number of housing units does not go down with foreclosures.
So, what is happening with the foreclosed people? How many of the units were primary residences? How many were sitting empty? |
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LoonyQT
Posts:894
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| 09/23/2008 5:04 PM |
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I'm being compared to Brian?!?
wow. just wow.
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wilson
Posts:541
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| 09/23/2008 7:17 PM |
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| No, you don't buy beer -- only rent it. |
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ilivehere
Posts:128
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| 09/23/2008 8:13 PM |
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renting beer is what you do when you show up empty handed and have to bum one. buying beer is something you never do at a padre game unless you have a big pot of gold like brian. i bet he has enough stashed away to buy that first condo in cash when the market hits bottom and buy us all a beer.
cheers
BGinRB-
I don't understand what your tying to say, "the housing units don't go down with foreclosures". I don't think anyone thinks that. What i'm saying is that if people are no longer owning homes then they will be renting. There are tons of places you can buy that are being foreclosed on that you could rent and be cash flow positive. The demand to rent will be there if homeownership goes down.
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BGinRB
Posts:65
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| 09/24/2008 2:12 PM |
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Posted By ilivehere on 09/23/2008 8:13 PM
BGinRB-
I don't understand what your tying to say, "the housing units don't go down with foreclosures". I don't think anyone thinks that. What i'm saying is that if people are no longer owning homes then they will be renting. There are tons of places you can buy that are being foreclosed on that you could rent and be cash flow positive. The demand to rent will be there if homeownership goes down.
ilivehere,
You are forgetting that each foreclosed property yields one renter and one empty unit. The empty unit goes back to the pool of available units.
Once it is acquired it will be either:
+ leased - in which case the total number of renters goes +1, but the total number of units goes +1 so it is wash (at least in absolute terms - percent of empty units still goes down), or
+ owner occupied (in which case the renters and units counts are unchanged from before the foreclosure).
What I am looking for is some, even anecdotal, evidence about what happens with foreclosed people.
Do they move out of city/state (I know one family in this category)?
Do they move in with parents/in-laws/family?
Do they rent similar unit in the same area?
Do they rent similar unit in less expensive area?
Do they rent less expensive unit in the same area?
Working through the paths outlined above (did I miss any?), the demand increases for less desirable areas or less desirable properties.
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ilivehere
Posts:128
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| 09/28/2008 9:44 AM |
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bginrb-
I must be able to see the future, i guess i was right, see below.
"Apartment rents in the county increased 2.49 percent in the last six months while vacancies decreased 1.38 percentage points as homeowners lost their properties to foreclosures and renters found themselves unable to buy.
The average rent rose to $1,344 as the overall vacancy rate dropped to 2.25 percent this month.
MarketPointe Realty Advisors said in its semiannual survey of 804 large apartment complexes with a total of 115,576 units that the average rent this month stood at $1,344, up from $1,312 in the March survey and $1,291 last September.
MarketPointe President Russ Valone said the rental increase was the largest in recent years and likely to increase further."
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wilson
Posts:541
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| 09/28/2008 10:06 AM |
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| I don't agree that rental demand changes with foreclosures over the long term or that it shifts demand. In general, the number of households and properties stay the same regaerdless of foreclosures.Where foreclosures do affect the rental market is in the short term where a housing unit may be unoccupied for many months while the banks are taking their own sweet time in putting the property on the market for resale. That's why rental prices may have risen, lower rental supply because unoccupied REOs. |
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