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