It's probably time you thought about becoming a landlord. Small scale or large, this is an opportunity for you to get in on some deals with positive cash flows from day one.
With the expiration of the homebuyer tax credit, home sales and resales dropped of a cliff across the nation. But there may be some lemonade to be made from these lemons. The withdrawal of that same stimulus will probably continue to boost demand for rentals this quarter and next as the number of people looking at home ownership subsides. Property prices should continue to hold at or near their record lows... for a while.
Even if the government's projections for jobs growth hold true, the projections for the national labor market suggest continued increase in the rate of unemployment and that will also add to the depth of the pool of renters. The continued retirement of "boomer" workforce are taking big numbers out of the workforce, and yet the rate of unemployment is not improving.
Add to this the halting of apartment construction, the apartment sector should be looking at notable occupancy gains. Projections for occupancy are running about 92-1/2% up a bit better than 1/2% over 2009. Really good news since it is the decrease in vacancy since 2007.
Yes, it's time to make some lemonade.
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