How has the property crash...

[J.o.h.n]

affected rental prices?

Obviously they've gone down, but can anyone give an example?

Thanks!

 

[vincent888]

Hi John

My research is showing rental prices dropping only slightly compared to home prices. I buy in Atlanta for Australian investors, mainly high yield foreclosed properties, and the home prices are at 15% of their price from 2007, yet the rents are still within 10% of the 2007 price. This is largely because of the huge number of foreclosures forcing people from being owners to renters.

This will vary, depending on vacancy rates in other cities, but the cash flow positive nature of these investments is very attractive for us Australians at the moment. Our property market increased in value by up to 20% last year in some capital cities and rent returns are averaging about 4% gross! In Atlanta we are achieving 20% NET!

Having the US government sponsor rent through section 8 tenancy is also a positive for maintaining rental prices.

Vincent Selleck

 

[J.o.h.n]

That's very interesting. Thanks for the comprehensive answer!

 

[jitendrasnv]

Hi,

According to me the property crash is due to the ups and down of the market and this ups and down leads to a drastic change in the property dealing.

The global market should be still to make the real estate business stable.

Thanks

 

[miles2152]

Rental rates have dropped slightly but have been holding steady over the past few months. As people were forced out due to foreclosure, rental demands have increased which has helped to stabilize the prices.

 

[jitendrasnv]

Yes I do agree that rental rates are steady over the past few months ,The another reason for this is the property rates are increasing day bu day and people prefer renting more that's why the stability is very much needed.

sell house as is that is in any condition is quite difficult but rending makes some how easy because it may possible tenants can buy that house as is.