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Home Ownership at a 10 Year Low

By
Real Estate Broker/Owner with Resident Team Realty, LLC & Toni's Property Management LLC BK3055881

With Home Ownership at a 10 Year low, more people are renting. It is only logical, with the country having a record year of foreclosures for the third yearin a row. Where do these families go? They have to rent since trying to buy a home with a foreclosure on your credit score will limit most to not getting a mortgage for a few years. Lenders are not as flexible with credit, hence even without having a foreclosure, many people just don't qualify with the new underwriting of mortgages. So, home ownership is dropping.

With renting increasing, and the values of homes decreasing, buying an investment property as a rental is a great way to gain long term wealth. Not with the craze in the middle of last decade, Flip This House. Real Estate has returned to a long time investment, probably with modest increases of about 3% a year.

Talking with investors, this is what they have been waiting for. Being able to purchase homes, rent them out, and have a positive cash flow. Rents are always regulated by what the economy in the region is able to pay. Here in Central Florida, Walt Disney World is the largest employer and pay is not on the high side. So rent here in Central Florida was always kept affordable. When the market was booming, home values were rising so fast and so high, a positive cash flow could only be obtained if a substantial down payment of about 50% was made. This being said, the return on investment was too low and investing in rental properties was not a good financial strategy. Well, the tide has turned and now is the time to load up your Real Estate portfolio.

Get out and take a look at some Bank Owned Foreclosures and start investing. It's the right time.

Call today, we can help!

Buy Disney Holiday Villas
Orlando investment Properties
Near Walt Disney World
www.disneyholidayrentalhomes.com 

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& Saint Cloud, Florida.Osceola County
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Resident Team Realty, LLC is a full service real estate company helping buyers, sellers and investors realize their goals in real estate sales and purchases. We can help you too! Give us a call at 407-483-5534 or email us at mark@residentteam.com 

 

 
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

I think a potential issue for us is that young people no longer see real estate as a perfect place to put their money and see it grow.

Mar 08, 2011 04:43 PM
Mark Horan
Resident Team Realty, LLC & Toni's Property Management LLC - Saint Cloud, FL
"The Resident Chef" - Resident Team Realty LLC &

Jeffrey- Because the last ten years have distorted their judgment. When I was young, I would say We, but have not idea of your age. My parents taught me a home was a place to have roots, and home ownership was a long term goal, and long term investment. Younger generations want it all now! they have no attention span and the Internet age made millionaires over night. We have lost our way and we are paying for it now. I am to blame with my children, I gave them both homes. Then, they abandoned them and I got stuck. I short sold one, and the other I have rented and it is negative cash flow. I blame myself and this is a microcosm of what is happening today. My kids couldn't wait to cash in, the property lost value, and so they abandoned there values and commitment and abandoned their homes. This is a long term investment.

Mar 08, 2011 04:54 PM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Thanks for putting this time info on RE out there.

Mar 08, 2011 04:54 PM
Mark Horan
Resident Team Realty, LLC & Toni's Property Management LLC - Saint Cloud, FL
"The Resident Chef" - Resident Team Realty LLC &

Michelle- With my investor hat on and not by Realtor had on. I feel that the time is now.

Mar 08, 2011 04:55 PM
Dennis Burgess
AmeriTeam Property Management - Mid Florida, FL
Orlando Property Manager and Realtor

Hi, Mark....I can't say that these numbers would or should come as a surprise- but it doesn't mean that's a good thing.  A friend of mine once said that he didn't want to own a car by completing payoff.  His thinking was that "we're always going to be paying on something", so he would pay a few years, switch cars and start again from Year One.  That same line of thinking has creeped into the real estate market.  There's less urge to put down roots for a long time and own, and less that see the benefits of homeownership vs. renting.

Mar 08, 2011 05:41 PM
Jane Haas
Buy A Little Time LLC - Sand Lake, FL

You know, if they dismantle freddie and fannie, I bet the rental market will skyrocket thanks to unavailable 30 year mortgages and home purchases not being affordable.  If I had the cash, I would certainly invest right now!

Mar 08, 2011 05:52 PM
Mark Horan
Resident Team Realty, LLC & Toni's Property Management LLC - Saint Cloud, FL
"The Resident Chef" - Resident Team Realty LLC &

Dennis- I still thing an investment in rentals properties is a good investment with possitive cash flow.

Mar 08, 2011 06:40 PM
Mark Horan
Resident Team Realty, LLC & Toni's Property Management LLC - Saint Cloud, FL
"The Resident Chef" - Resident Team Realty LLC &

Jane- and too would go away home mortgages with just 3.5% down. Home owners would need 20%. The time to invest in rental properties is now.

Mar 08, 2011 06:41 PM
Dan Edward Phillips
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner

Good Morning Mark, careful investment in rental properties (and good management) always pays a great return.

Mar 08, 2011 09:17 PM
Mark Horan
Resident Team Realty, LLC & Toni's Property Management LLC - Saint Cloud, FL
"The Resident Chef" - Resident Team Realty LLC &

Dan- And I fully endorse the current market.

Mar 09, 2011 02:29 AM
Jane Haas
Buy A Little Time LLC - Sand Lake, FL

Mark, I'm not too far from you - i'm in Davenport!  We bought our house here in 2007 for cash in the low 3's and now there is a house, 2 doors away from me, 4 bedroom/2.5 bath that's a foreclosure for I think $64K.  Crazy!  If I had the cash, i'd buy that now!  It's in nice shape and this is a great neighborhood!

BTW - if you need any pictures, call me!  =D

Mar 09, 2011 07:44 AM
Mark Horan
Resident Team Realty, LLC & Toni's Property Management LLC - Saint Cloud, FL
"The Resident Chef" - Resident Team Realty LLC &

Jane- That has happened in all Central Florida neighborhoods.

Mar 09, 2011 10:46 AM
Tom Braatz Waukesha County Real Estate 262-377-1459
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!

Mark

I see lots of people renting here as well that need to wait on their credit.

Mar 11, 2011 09:47 AM
Tom Braatz Waukesha County Real Estate 262-377-1459
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!

Mark

I see lots of people renting here as well that need to wait on their credit.

Mar 11, 2011 09:47 AM
Tom Braatz Waukesha County Real Estate 262-377-1459
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!

Mark

I see lots of people renting here as well that need to wait on their credit.

Mar 11, 2011 09:47 AM
Mark Horan
Resident Team Realty, LLC & Toni's Property Management LLC - Saint Cloud, FL
"The Resident Chef" - Resident Team Realty LLC &

Tom- A great oppertunity for investors to get rental properties.

Mar 11, 2011 07:49 PM