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That depends very much on location, and who you are.
I lived in several rental houses in college and during my young adulthood. I never lived in an apartment building. I wasn't rich or above it.... It was just that I had pets, even in college.... the last place I rented had seven acres and pasture and I had my horses there. Not lavish, it was an old mobile next to a store... but it was a great place to rent!
That depends very much on location, and who you are.
I lived in several rental houses in college and during my young adulthood. I never lived in an apartment building. I wasn't rich or above it.... It was just that I had pets, even in college.... the last place I rented had seven acres and pasture and I had my horses there. Not lavish, it was an old mobile next to a store... but it was a great place to rent!
Ah, but you are the exception that proves the rule.
I see a lot of posts in this thread, that do not know what they are talking about, and many more, that know nothing about the community needs, and that they have to share the market for homes with the entire real estate market.
1: Homes have to meet minimum standards to be financed. It can cost thousands of dollars to bring them up to lendable standards. The sellers do not have the time and money to do it, and the buyers do not have the money or knowledge to do it. The flippers, have the money and can bring the homes up to lendable standards. Flippers have always been with us, and are needed in some situations.
2: Rental owners are much needed. Lets use some examples of who the large percentage of renters are. A young family just out of college are hired for a good job as a computer programmer. They do not have the funds or credit history to buy a home. They need to be able to rent a home, to be able to take the job. They need to rent a home for 2 to 5 years, to reach the point of having the funds, etc. to be able to buy a home. The employer needs to be able to hire them to fill their needs. There are many people and reasons, that they are needing homes for rentals.
Rental homes are scarce, and more need to be made available be filling this housing need. The IRS knows this, and tax laws make it to the advantage of the landlords to make it possible for the landlords to be encouraged to have homes for rent to fill the needs of the market. Without rental homes, there would be a big problem in the area. These rental homes, are a vital need for the city, to keep the economy operating smoothly. Some landlords may own dozens of homes, and may not always be local people.
Local economies need rental homes, and buyers buying for personal use, have to realize they are competing with these investors to buy homes.
Investors buy homes for the Total Return On Invested Dollars. This is the sum of the Cash Flow Return, the Tax Benefit Return, the Appreciation Return, and the Loan Amortization Return. This is then computed based on the investors actual dollar investment in the property. As the Wall Street Journal back end of 1970's said this is the only way to evaluate investing in real estate. The return can be as high as in the 40% range of the invested dollars. The IRS made it possible to make this kind of return, to encourage investors to fill the vital needs for real estate rentals. It is one of the safest investments investors can make.
Some of you will think this is terrible having to compete with investors for single family homes, but without this incentive the investors would get out of the real estate market, and the country would have a serious housing problem, which would drive the price of homes far above the current prices.
I see a lot of posts in this thread, that do not know what they are talking about, and many more, that know nothing about the community needs, and that they have to share the market for homes with the entire real estate market.
1: Homes have to meet minimum standards to be financed. It can cost thousands of dollars to bring them up to lendable standards. The sellers do not have the time and money to do it, and the buyers do not have the money or knowledge to do it. The flippers, have the money and can bring the homes up to lendable standards. Flippers have always been with us, and are needed in some situations.
2: Rental owners are much needed. Lets use some examples of who the large percentage of renters are. A young family just out of college are hired for a good job as a computer programmer. They do not have the funds or credit history to buy a home. They need to be able to rent a home, to be able to take the job. They need to rent a home for 2 to 5 years, to reach the point of having the funds, etc. to be able to buy a home. The employer needs to be able to hire them to fill their needs. There are many people and reasons, that they are needing homes for rentals.
Rental homes are scarce, and more need to be made available be filling this housing need. The IRS knows this, and tax laws make it to the advantage of the landlords to make it possible for the landlords to be encouraged to have homes for rent to fill the needs of the market. Without rental homes, there would be a big problem in the area. These rental homes, are a vital need for the city, to keep the economy operating smoothly. Some landlords may own dozens of homes, and may not always be local people.
Local economies need rental homes, and buyers buying for personal use, have to realize they are competing with these investors to buy homes.
Investors buy homes for the Total Return On Invested Dollars. This is the sum of the Cash Flow Return, the Tax Benefit Return, the Appreciation Return, and the Loan Amortization Return. This is then computed based on the investors actual dollar investment in the property. As the Wall Street Journal back end of 1970's said this is the only way to evaluate investing in real estate. The return can be as high as in the 40% range of the invested dollars. The IRS made it possible to make this kind of return, to encourage investors to fill the vital needs for real estate rentals. It is one of the safest investments investors can make.
Some of you will think this is terrible having to compete with investors for single family homes, but without this incentive the investors would get out of the real estate market, and the country would have a serious housing problem, which would drive the price of homes far above the current prices.
You don't know what you are talking about. The FED just needs to keep raising interest rates and real estate speculators will run for exists. Homes are for living in not for speculating. The Fed inflated home prices by enabling speculation. This puts the American dream of home ownership out of reach of most working class Americans. The FED needs to end this madness in housing. When interest rates are high and keep getting higher and higher no one will care speculating with real estate or playing landlords when rents are falling .
Don't fight the FED and if the FED is OUT now, the long-delayed DEFLATION of the DEBT BUBBLE will begin.
Good Luck!
You don't know what you are talking about. The FED just needs to keep raising interest rates and real estate speculators will run for exists. Homes are for living in not for speculating. The Fed inflated home prices by enabling speculation. This puts the American dream of home ownership out of reach of most working class Americans. The FED needs to end this madness in housing. When interest rates are high and keep getting higher and higher no one will care speculating with real estate or playing landlords when rents are falling .
Don't fight the FED and if the FED is OUT now, the long-delayed DEFLATION of the DEBT BUBBLE will begin.
Good Luck!
You are overlooking the fact that there are not enough rental units without including rental homes to fill the needs of the marketplace.
And everyone should have the same ability to buy OR rent a suitable housing unit to fit their family's needs and wants.
And without a lot more rental units being available, there will still be a shortage of rental units to fill the needs in many areas of the country. If we take away the ability to rent a single-family home from the public, it would drive the rent on apartments out of site, reaching the point that a huge percentage of families would be unable to find somewhere for their family to live.
This is a country based on freedoms, and we cannot take away the rights of the public to own or rent the type of housing they need for their families. It may be acceptable in some countries, but it is not acceptable in the USA to deny families the right to own or RENT a single-family home to house their families. And those homes will be owned by investors, holding real estate as their preferred investment medium.
And rental homes are not speculating, but are supplying a big need in many parts of he country. Investors hold them for the long term, and can be the big part of their retirement income.
Don't fight the FED and if the FED is OUT now, the long-delayed DEFLATION of the DEBT BUBBLE will begin.
Good Luck!
You mean the same FEDs that creating the last housing bubble, then tried to keep it from popping, creating even more issues? Go do some homework before popping off with your nonsense.
You mean the same FEDs that creating the last housing bubble, then tried to keep it from popping, creating even more issues? Go do some homework before popping off with your nonsense.
Yes the same FED. The FED lost control of inflation and has no choice but to rises interest rates. The party is ending. All this nonsense about the lack of inventory, pent up demand and etc. is just that nonsense. Without the FED in business of suppressing interest rates housing bubble 2.0 will deflate and all real estate speculators will end up just like those fools back in 2007-2008.
Just look what happened to BUY the DIP traders and investors in the stock market lately. Without the FED “PUT” the party is over. Only a FOOL would fight the FED and bet the opposite way.
You are overlooking the fact that there are not enough rental units without including rental homes to fill the needs of the marketplace.
And everyone should have the same ability to buy OR rent a suitable housing unit to fit their family's needs and wants.
And without a lot more rental units being available, there will still be a shortage of rental units to fill the needs in many areas of the country. If we take away the ability to rent a single-family home from the public, it would drive the rent on apartments out of site, reaching the point that a huge percentage of families would be unable to find somewhere for their family to live.
This is a country based on freedoms, and we cannot take away the rights of the public to own or rent the type of housing they need for their families. It may be acceptable in some countries, but it is not acceptable in the USA to deny families the right to own or RENT a single-family home to house their families. And those homes will be owned by investors, holding real estate as their preferred investment medium.
And rental homes are not speculating, but are supplying a big need in many parts of he country. Investors hold them for the long term, and can be the big part of their retirement income.
The FED just needs to keep raising rates and all Real Estate Speculators will run for exits. Who wants to speculate with housing and play Slumlords and Landlords when you can get safe return in your Bank? King Dollar will CRUSH housing speculators and free up inventory. Strong US Dollar and higher interest rates will deflate rental prices, housing prices, educational cost, healthcare cost......will deflate “everything bubble”.
You mean the same FEDs that creating the last housing bubble, then tried to keep it from popping, creating even more issues? Go do some homework before popping off with your nonsense.
To be fair it wasn’t the feds that created the last housing bubble.
They ended up having to bail us out of that giant mess. That disaster was ALL on the banks and the rating agencies.
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