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The real estate companies are not buying those houses to rent in the long term. They are buying at market bottom prices, renting them for positive or neutral cash flow, and plan to sell them in a year or two as market prices improve and they have qualified for the 15% capital gains tax rate. With 80,000 new people a year moving to the Charlotte area, rents and home prices have nowhere to go but up.
[quote=sjlurie;2929223]The real estate companies are not buying those houses to rent in the long term. They are buying at market bottom prices, renting them for positive or neutral cash flow, and plan to sell them in a year or two as market prices improve and they have qualified for the 15% capital gains tax rate. With 80,000 new people a year moving to the Charlotte area, rents and home prices have nowhere to go but up.
Section 8 is a program that has been designed based upon housing needs and standards, therefore $1500 rent is quite high and will be highly questionable. Contact the Charlotte Housing Authority for more information.
We certainly would. We have no problem paying this much for the following reason:
- We're only planning on staying in Charlotte for 2 years and then move somewhere else. It would be too much risk to buy a house and try to sell it 2 years later. It's also too much effort.
- When you rent a place for less than $1000, the risk of having trashy neighbors is much greater than when you pay $1500 for rent.
That's all
Trashy like throwing garbage out the back door? House just down the street rented for close to $2500/month, (5 - 6 years ago) and the out of state owners finally got them evicted as they trashed the place, and the cops had to make several visits for loud parties, fights, domestic violence, etc.
It is shallow and unbecoming to judge the quality of any person based on income and ability to pay higher rents.
Some people may not have the capital needed to get into a home so they rent a house for xxxxx amount of dollars a month instead with very little money up front needed to get into it. Financially it may not be the best move but if it's what works for you at the time than who could blame them.
I've definitely paid more than that for rent for less space.
I rented for years because I wasn't sure where I wanted to settle down. From what I understand, the ROI on a house just isn't there unless you intend to stay in it a minimum of 3-5 years.
Add to that some people just don't have stellar credit, or can't get a good rate on a loan, plus the mortgage crisis we're in... For some people, renting just makes better financial sense in the short term.
PLUS, as a renter, you're not responsible for the repairs and maintenance and yard, etc... As we all know, there's lots of additional costs to owning a home; it's not just the mortgage payment.
I paid about that much for a 3 bedroom apartment to rent for a year in Charlotte, and I would much rather have paid that money to rent a house. There are various reasons people rent, if they know they won't be in an area long for example. I have to say though that renting was one of the worst mistakes I made in my early 20s. I rented a one bedroom for 2 and a half years and the 3 bedroom (with a roommate) for a year before we bought, and all that money was flushed down the drain. When we finally did buy our mortgage payment was less than our rent. We should have bought in the first place but were single and didn't want to be locked into a mortgage just yet.
i'd rather rent a house for $1500/month than have to put down 20% on a house to get a decent mortgage. Alot of people went through foreclosure and cannot afford to buy, so they rent, and are paying top dollar to have a nice home.
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