A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
Why do people who can buy continue to rent?
I was just reading that Case-Shiller (reports on Housing) says “the
housing recovery is faltering. I am so surprised that people still are touting
what has happened in the last couple of years as a housing recovery. There was
no real recovery, the only thing that help housing, is the huge amount of
investors taking the bank owned properties off the market with cash purchases.
While this was a good thing, it by no means meant that housing was on its way
back.
The question that I have is why, with all the incentives that people
have access to, low interest rates, low down payments and other programs for
first time buyers, they continue to pay increasing rents? The answer is simple,
the only people who are feeling that the economy is improving are the people on
Wall Street, and their increasing wealth is coming at the expense of the rest
of us, with free money that the rest of us are paying for.
When the economy is being falsely pushed with money being injected at
the top, people just don’t feel good about what is happening in their own
lives.
When they talk about your increased 401 K, the people who are struggling
don’t have a 401 K and many people who did, had to cash them out, to survive. The wages
are stagnant and so many people have part time or jobs that pay far less then
what they were making before. There are very few people out there who are
confident that the economy is in good shape.
It looked like for a while that new construction was on its way, but
that has also slowed and new construction permits are a great way to forecast
future growth. When new construction slows, there may be trouble on the horizon.
All this is great news for Rental property owners, and rents are going
up, and low rental inventory makes my business of Property Management in
Anaheim Ca. a good business to be in for the foreseeable future.
The one thing
you do see is new construction of multi-family housing on the rise. I really
like the multi-family housing business, and for investors it is a great way to
keep you investment all in one place. It is much easier to care for 4 Tenants
in one building then 4 Tenants in 4 different locations And if you have good
building in the right location, you can get almost as much rent as you can with
single family houses.
Investors are in a real good position, and unless something changes,
they can come up with all kinds of schemes to get people to buy homes, I don’t think
it will work this time. The bad taste of the hosing bust is still with too many
people.
A.D. Cantelmo Property Management Specializes in Property
Management in Orange County Ca.