No Bull Agent

Real estate investors rethinking their strategy

September 19th, 2010 by Mike Dils
Categories: Home Buyers, Investors, Real Estate Market Trends
Please leave a comment.

Real Estate Investors Generating Income

In these current economic conditions, the rental market is one area that is seeing increased activity.  According to “Rise of the renting class” posted on CNNMoney.com on July 28, the number of households renting increased by 10% or by 3.4 million between 2004 and 2008.  The largest increases have been seen in the Midwest and the South.  There is no doubt that home ownership offers many advantages including tax incentives, appreciation and pride of ownership that renting cannot accomplish.  Renting, however, may be the only option for those where ownership is not possible or not wanted at this time.  The CNNMoney.com article suggests the perceptions about renting and home ownership may be changing.  The rising rental demand, coupled with low interest rates and lower home prices can offer opportunities for investors looking to have an income generating property.  The recent CNNMoney.com article, “Vulture investors:  They’re back – and making a bundle” posted on August 5 discusses this trend.

The investor opportunities now are different than several years ago.  Prior to the drop in the housing market, investors were purchasing properties for the purpose of “flipping.”  Due to the rapid appreciation between 2004 and 2006, it was possible to make a good profit through buying low and selling high.  This level of appreciation may be gone, but a different opportunity has appeared. Read the rest of this entry »

Tags: california, generate, income, investor, ken kaplan, no bull agent, rental, san diego