Renters and Investment Opportunities

It is interesting the turn of the market this last quarter that is leading to more rentals and rental properties becoming in demand.

Two important sides to look at here:

Landlords

I have more and more homeowners looking to buy new, bigger, upgraded homes while renting out their current home.  The majority of these homes are 2800 sqft and bigger - pool - 3 car garage - Granite kitchen - gated or master planned communities.  I am renting these homes at $2000 or more within 3 days with an average of a 24 month lease.

This is a great plan for financially savvy homeowners.  Because they paid that astronomical price in 2005 - 2006 they do not want to sell it now and lose money, instead they are realizing they can rent out their homes for most of their mortgage payment if not all of it and upgrade simultaneously.  They can then close on their new home while still maintaining their credit, increase their home equity, and have a nice little investment diversification in their retirement plan.

On the flip-side - Renters:

The majority of renters that are coming on the market now have, unfortunately, left their beautiful, upgraded homes and are looking to replace this same feel.  They still have their income and can afford to get into the homes that match what they left behind.  Some can even afford to buy another home but are still weary of what is happening in the market.

They do not want to be 'caught' again buying a home that they will have to foreclose or short sale again.  This fear of not wanting to repeat past mistakes is ramping up the rental market tremendously.  Waiting also allows people to repair their credit and save money to put more of a down payment on the next house that they are looking to purchase.

Both sides, renters and investors/home owners, are strategically planning their next move.  Either buying a new home and renting out their current one, or finding a rental that will be as good as the home that was left behind.

No matter what side you happen to be on you have to be comfortable with your situation. I have helped many people in both situations figure out the best way to get their goal accomplished.  Now is the time to buy, be a landlord and/or rent - I can help you do it ALL!