Monday, December 05, 2011
—The housing model of the future will be investors buying up existing housing stock and renting the houses or selling them to the occupant and financing the purchase themselves. Given the low returns on other investments of late, this is a lucrative new market for people who have cash.
This has been on my mind for awhile. Buying and renting homes for a long period of time to people who are cash poor. The numbers on this are very attractive if the housing market reaches 2005 levels by 2030.
The good news is that there are incredible loans available. Low, low interest rates and the price for houses is right. You can also save a bundle if you refinance your existing loan to a lower interest rate.
The key is having good credit and cheap financing. With the housing market as a load stone for the next decade the cheap financing is likely to stay longer than many expect.
Update: This is very interesting. Their just might be some real estate opportunities out west.