Archive for November, 2014

This theme will be the biggest debate in 2015

Monday, November 3rd, 2014

Rent or Buy

Rent versus Buy a home. The foreclosure and bank owned properties are now behind us. Low interest rates have been low for so long now that everyone has gotten used to them at these levels, so I guess that must be the new normal. Home values have come back and builders are building. So what now?  How about the new trend? More renters then buyers. This is music to the ears of all the investors that have bought millions of residential homes over the past few years. After all, renting them out was the main purpose for buying in the first place. Now, the investors dreams have come true. With more renters then buyers, what do you think is going to happen? That’s right, rents are increasing. This will continue until the renters decide they are being taken advantage of. At that point they will start a new trend: ‘First-time buyers are back in the market’. Today’s report that first-time buyer this year represents the lowest level in nearly three decades-just 33 percent of all homes sold. The experts are starting to debate the reasons why and this discussion will be a major topic next year. I remember the first book I read after graduation, ‘The 25 wealthiest people in American History’. I discovered that they either made their money from real estate or once they accumulated wealth from banking, shipping, railroad, etc., they invested their money into real estate. Eventually the renters will figure that out. More updates to follow.