If everyone got into the rental market business does that mean we are headed for another bubble? This one in the rental market, of course, which is extremely hot right now.
Now, I am all for the feds leasing out foreclosed home to ease the burden on the real estate market and get rid of some inventory, but if everyone gets into it the way Wall Street wants them to then aren't we leaving ourselves wide open to another catastrophe?
According to Matthew Goldstein of the Huffington Post, investors are drawn to the rental market because it is hot right now. Isn't that what they were espousing years ago when it came to flipping in the real estate market? We all know where that ended up. It seems like everyone who sees a good thing wants to jump on the get rich quick band wagon. But, when things go south everyone jumps ship and the whole market goes down the toilet. Americans are renting now simply because they are afraid to buy, even though it's cheaper for crying out loud! How very sad this is.
I am seeing buyers coming in the country from China, Brazil, Israel, etc. and buying up distressed property like it is going out of style. Then they just rent and sit for the market to come back. What a novel idea. Why isn't everyone here doing it? Fear, pure and simple. Americans just don't want to get burned again and have lost their kahunas because it's not so easy anymore the way flipping was.
As a country overall we need to stop looking at the easy way to make a buck in the real estate market and look at the long term goals, sort of like a stock. Not everyone can be a day trader. It's funny how everyone thought they were a real estate guru in the heyday of flipping real estate. Now, they are all down on their luck homeowners looking for a handout. You can't have it both ways. If you're going to rent, stick with the gameplan for the long haul and look at it as an investment with a nice tax deduction attached. Click on link below to read story in Huffington Post.
http://www.huffingtonpost.com/2012/03/20/wall-street-foreclosed-homes_n_1367962.html
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