With interest rates so low and prices so affordable one would think more home buyers, especially first time home buyers would be buying homes. The reality of the picture however is that with the job market slow people don't have much money and/or stable jobs and lending criteria has tightened up leaving many wanting to buy but unable.
The real winners right now are those investors taking advantage of the situation. With many folks either wanting to rent or forced to rent because they lost their home to foreclosure has caused the rental business to be on the rise. Rent has risen 3% in the 3rd quarter of 2011. The lack of new construction and demand has limited the amount of vacancies in rentals.
Investors accounted for 18% of all home purchases in July and 22% in August. Cash buyers were 30% of all transactions!
Many investors are buying places for $40,50,60K and renting them for $750-1000 and making 10-30% returns after expenses. Many times even more. There is virtually no where in the stock market or bank where you can make this type of return.
The rental business is not easy and being a landlord can be stressful but with the right property portfolio, business plan, and rate or return you can turn into a very successful business person. There are many that have made their wealth with real estate and rentals.
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