NJ home purchase 2021 - will rentals be coming on the market? (for sale, real estate)

[FromGA]

It is my understanding that landlords cannot evict for not paying rent, but they can end a lease at the end of its term. Landlords who did not have a good 2020 with tenant might decide to put the rental for sale. This might increase the amount of houses available on the for-sale market. Do you see this happening?

I plan/hope to buy in a normal housing market, not in an inflated one. I am just trying to gauge the factors that could influence that.

[FromGA]

Read this today in a real estate related website:

Looking ahead 18 months, with many landlords who will not have received rents for the entire duration of COVID-19 and are currently on an extension with their lenders, many won't be able to catch up on the loss of rents. Those landlords will sell, go into foreclosure, or negotiate agreements with the lender. To qualify for an extension of a loan, say from 30 years to 32 years, the landlords will need to be eligible for the loan. If they aren't, they will likely need to resort to the first two options.

[midnight_thunder]

Originally Posted by FromGA

It is my understanding that landlords cannot evict for not paying rent, but they can end a lease at the end of its term. Landlords who did not have a good 2020 with tenant might decide to put the rental for sale. This might increase the amount of houses available on the for-sale market. Do you see this happening?

I plan/hope to buy in a normal housing market, not in an inflated one. I am just trying to gauge the factors that could influence that.

Eh, maybe you might see it on the fringes, but I do not see failing landlords leading to a glut of houses on the market. Landlords are likely to try to avail themselves of PPP loans to get by. Their properties are increasing in value just like everyone else's, which just gives banks more security. With evictions blocked up too, there is little incentive for banks to foreclose on landlords.

You want housing prices to go down? Fight NIMBYism, support plans to build affordable housing. Enough McMansions using up every inch of land; put a duplex there instead. More property tax revenue for towns, more housing for people.

[lammius]

Originally Posted by midnight_thunder

Eh, maybe you might see it on the fringes, but I do not see failing landlords leading to a glut of houses on the market. Landlords are likely to try to avail themselves of PPP loans to get by. Their properties are increasing in value just like everyone else's, which just gives banks more security. With evictions blocked up too, there is little incentive for banks to foreclose on landlords.

You want housing prices to go down? Fight NIMBYism, support plans to build affordable housing. Enough McMansions using up every inch of land; put a duplex there instead. More property tax revenue for towns, more housing for people.

Agree.

[HudsonCoNJ]

Originally Posted by midnight_thunder

Eh, maybe you might see it on the fringes, but I do not see failing landlords leading to a glut of houses on the market. Landlords are likely to try to avail themselves of PPP loans to get by. Their properties are increasing in value just like everyone else's, which just gives banks more security. With evictions blocked up too, there is little incentive for banks to foreclose on landlords.

You want housing prices to go down? Fight NIMBYism, support plans to build affordable housing. Enough McMansions using up every inch of land; put a duplex there instead. More property tax revenue for towns, more housing for people.

Landlords aren't eligible for PPP loans, in most cases. PPP is determined by payroll, so unless you have a property management company with employees under payroll, you're not getting any PPP money as a landlord.


I'm in a situation now where a tenant has not paid rent for months, and probably will continue to not pay as long as there's a moratorium on evictions. My attorney suggested filing for a judgment for collections since that is still allowed.


It's a shame that tenants don't have to demonstrate hardship in order to stop paying their rent. Literally anyone can stop paying rent regardless of how well they're doing financially and they won't be evicted. Same with these PPP loans. A lot of thriving businesses have received PPP funds because there's nothing that says you have to demonstrate a need to qualify.

[Marc Paolella]

Originally Posted by FromGA

It is my understanding that landlords cannot evict for not paying rent, but they can end a lease at the end of its term. Landlords who did not have a good 2020 with tenant might decide to put the rental for sale. This might increase the amount of houses available on the for-sale market. Do you see this happening?

I plan/hope to buy in a normal housing market, not in an inflated one. I am just trying to gauge the factors that could influence that.

You will not be buying this year or next if you are waiting for a normal market in New Jersey. Especially in the suburbs. The market is completely stressed right now with almost no inventory. There is incredible demand from people leaving urban areas. Homes are selling at 10%-15% higher than they were worth last year at this time, and are getting 10-20 offers on the very first day if they are in ANY kind of decent condition and are in any kind of nice area.

And no, landlords will not be selling en masse. Most tenants are paying their rent. The situation is not all that bad.

[vision33r]

The lenders are also working with homeowners to help. Because a gut of foreclosures would cause a lot of problems. The reason houses are sold faster right now than pre-pandemic is due to lenders stepping in and the Feds issuing stimulus as long as it takes until the pandemic reaches closure.