A new report by Altos Research “Rents and the Housing Recovery” confirms this housing market recovery is real. However, not only are home prices rising, but rents are rising too. This may seem strange to you as typically housing prices and rents move in opposite directions. When the housing market is soft, homeowners move into rentals and when housing is strong, renters become homebuyers. But that is not the case in this housing recovery. Both housing prices and rents are rising. Check this out…
Take a look at the Rental Market in California:
Altos Research surveys over 1 million apartments and single family rental homes weekly
Mike Simonsen reports that bear market investors worry about the “fragility of the rental market” as the housing market rebounds. Well, looking at this data, the rental market is not only holding steady in price per square foot metrics, but is rising in the many big investor markets – where private equity firms are buying up entry level homes and holding for big positive cash flow (8% or higher cap rates right now) and even bigger appreciation gains in the next 5 years.
Why is this Happening?
We are in very interesting times. This housing rebound has happened faster than anyone has predicted. (Just one year ago we were in a buyers market.) Foreclosures are dropping, housing inventory is at record lows and new home builders are late to the party (don’t expect to see much new construction really hit the market until 2014). This has caused serious housing shortage – not only for buyers – but for renters too. This is a great time to own real estate!
Expect Rents to Continue to Rise in 2013 and beyond
We expect 2013 will go down as the best year to buy foreclosure real estate in our generation with both housing prices and rental rates rising in 2013 and beyond. Read the full report from Altos Research here.
Foreclosure investor profits are surging whether you buy and quickly assign your deal to another investor; or buy, fix and sell to an eager homebuyer; or buy, fix and hold for big positive cash flow and sell later for even larger profits. This is a market you can’t lose – IF you buy the right property, at the right wholesale price and lock in your profits at your purchase. You still need to be careful, as not all real estate deals are good deals. And if you want to use other people’s money to fund 100% of your deal, you must lock in a 15% minimum profit correctly at your purchase.
Learn how to find these wholesale deals (that are not listed on the market) and fund 100% of your deal using other people’s money, locking in your 15% or more profit when you sign the deal – for FREE Tonight Wednesday, April 24th, 6pm PDT in my Live Webinar “Foreclosure Investors, Make Fast Profits Now“. Register on the right or Click Here for more details. And join me!
Talk to you soon!
Read More about Rental Housing:
- Buy and Hold Foreclosure Housing Rentals are Heating Up
- Rental Housing Market to Hit New Highs
- Rents and Demand for Foreclosed Homes to Rentals Surge