Quote:
Originally Posted by piercehawkeye45
So, yesterday I was talking to someone in his early 30s who has a secure job and family and he mentioned how he almost bought a bunch of houses in his neighborhood for cheap and then would make the money back in the form of rent. His logic is that since many people of my age, late teens and early twenties, will have really bad credit scores, they will not be able to take out house loans and will be forced to rent, therefore renting from him.
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The belief that renting would be a good investment was very popular this past year. But statistics say the trend has been to move in with friends or family. Those expecting to profit from an increasing number of renters, so far, have been economically disappointed.
Second, some data suggests home prices have not yet fallen sufficiently yet. A large numbers of home that should be put on the market are being withheld. Many banks not even foreclosing just so their homes stay occupied for now. IOW are those homes currently priced low? Will a still to go lower housing market create losses that the rent will not cover? These are difficult and risky questions because numbers are currently so vague and contradictory – and may be different in that locale.