| Residential real estate investors have probably | | | | rental property owners are not the mega |
| realized by now that they are going to be able to | | | | corporations that we might expect, but private |
| 'clean up'. With so many people having to face | | | | purchasers. |
| short sales, foreclosure and often the loss of their | | | | Individuals and married couples own over 19 million |
| credit rating, the rental market is going to expand. | | | | of the rental units, and corporations and business |
| This is reinforced by the fact that it has been | | | | partnerships own the other 16 million. It was also |
| predicted that 2008 will see even more | | | | reported that condo sales and rentals are |
| foreclosures and short sales than 2007. | | | | expected to be the next big boom. |
| The Chicago-Sun Times put a positive spin on the | | | | This indicates that there are many ordinary |
| realty situation when they wrote that "amid | | | | people who may be ready to invest in some of |
| negative reports, some real estate veterans see | | | | the cheaper deals on the market. Cheaper deals |
| opportunity". They may have been referring to | | | | include foreclosures and short sales. |
| the fact that developers in Chicago are already | | | | However, even traditional methods of sale |
| planning more multi-family units in the area. | | | | through real estate agents are offering 'cheaper |
| Going through the ordeal of losing your home is a | | | | deals'. This is because the average home owner |
| terrible and a traumatic experience. Most probably, | | | | who wants to sell their home, must stay |
| those who went through it will not want to | | | | competitive to attract buyers. |
| consider becoming home-owners again for a long | | | | Staying competitive is determined by the simple |
| time - if ever. This means that after the initial | | | | law of supply and demand. Wherever and |
| shockwaves have passed and they leave the | | | | whenever there is an over supply of anything, |
| safe haven that they fled to (maybe Mum and | | | | including homes for sale, the market price will |
| Dad's or a friend's) they will be looking for a rental | | | | inevitably drop. |
| home. | | | | All of the information, predictions and current |
| They will probably feel the need for the | | | | climate are pointing to opportune realty |
| permanence of a long term rental, and reliable | | | | investment chances right now. This applies to |
| long term renters are the best type of tenants | | | | almost all areas of the US. Realty reports show |
| for investors. This 'flood' of new rental clients is | | | | that 19 out of 22 metro real estate areas in the |
| good news for people who are holding rental | | | | US have suffered drops in realty value and |
| properties, as demand can often push up rents. | | | | activity. |
| It is also good news for investors. A glut of | | | | The ripe investment situation is even further |
| homes on the market has been slowly bringing | | | | boosted by the fact that mortgage rates have |
| down the median price of a house. The | | | | dropped a full point since December 2007. |
| opportunity to buy more bargain-priced property | | | | Eventually it will come full circle; as the demand to |
| is out there and it makes sound investment sense | | | | buy cheaper homes increases, the law of supply |
| to pursue it. | | | | and demand will prevail, and house prices will start |
| According to a study put out in 2007 from | | | | to edge up. |
| Harvard University, the majority of the country's | | | | |