I know everyone states now is the time to purchase an investment, but how do I know "they" are correct? Rents have been increasing steadily since January of 2010 and have gone up another 1.7% in May in Orange County, CA.
The Orange County Register had an article Rents Head Higher showing we are increasing at a 2.2 percent per year rate. We are at the highest rate of increase since 3rd quarter of 2008.
Iti is simple as to why this is going on in this market. Higher demand (more than usual number of renters). With a large portion of individuals and families who have lost their homes and/or have been through short sales and foreclosures most do not qualify to purchase again. The number of people that would be first time buyers are to afraid to enter the market in fear of purchasing today and tomorrow the home goes down in price.
Now the choices are not there. The number of properties to rent are in short supply. To many renters and to few properties to rent.
The Orange County register stated that Landlords position will continue to improve for numerous economic reasons. This condition will remain for some time to come.
The continued economic crisis will cause more and more people to consider and even force some into a rental situation. It is a time to purchase and give a home to those who are stuck and cannot afford to purchase a home.
That is: Why I declare now is the time tp purchase an investment property, condo, home, duplex, triplex whatever you can do. It will help those who have been burned in the mortgage meltdown.