OfflineWe hear it and see it everywhere, the radio, the tv, from our frinds co-workers. Truth is our economy is down and we are in a ressesion. Jobs are being lost everyday forcing people to foreclose or do a short sale. This creates deals for us REI's of the world. We buy low, fix and rent. The people who were forced out becuase they could not afford their mortgage payments are now the ones looking to rent...right!? Our rent on these homes is more than likely more than what their mortgage payments were. So I ask, how are these folks going to be able to make the rent payments if they could not make the lesser mortgage payment? If we cant rent it, then we could possibly get forclosed on, creating a vicious circle. This makes me think maybe condos with lower rents might be where REI's should be buying not SFR's.
I would like to hear all your thoughts on this, and solutions/suggestions.
p.s this is not to be a downer, this was just me thinking out loud and wanting some feed back on this Vicious circle.
Don't Wish the Past, Create the Future! - DH
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Don't Wish the Past, Create the Future! - DH
You are absolutely correct. However, with home ownership comes insurance, taxes, home improvement, gas/oil and other expenses. In renting, all you worry about is the rent and the few dollars added every year. There are several reasons people are selling, their interest and payments are increasing, job lost, property depreciation, interest only is now large principal plus interest and many other. The man who was proactive, building storage houses is now capitalizing on the renters who are displaced due to job lost. If he/she cannot pay rent, how could they pay storage. It is a vicious cycle, where those who cannot pay rent will either end up in the shelters or on the streets. We have to continue to pray for each other. These are difficult times. However, we must always remember, God says to believe in him. He also said if he takes care of the birds, he will also take care of us. The key to buying and renting is to buy low and make the rent affordable with enough cash flow for other investments. Some of us may be unable to purchase due to other variables affecting us that needs to be addressed. We have to encourage each other to look past this period, ride the storm and move on. This too shall pass. In some cases, it is all about position ourselves to make good use of what is available to us.
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.