March 28th, 2012
Why do investors like residential income property right now? Simply put, home prices are low, interest rates are low, and vacancy rates are low. These are not just national trends. These factors currently exist in Walla Walla.
Additionally, rents are projected to continue rising at about 3% per year. Rental demand is growing due to the number of home owners whose credit has been negatively impacted by a short sale or foreclosure or have lost their appetite for home ownership.
If you’d like some additional info, check out the following:
During the last half of 2011 the National Association of Realtors reported that approximately 1 of every 5 home purchases were made by investors.
Morgan Stanley recently shared research that in their view, up to 8 million single family homes will become investor owned rather that owner occupied in 2012.
And Warren Buffet recently said on MSNBC, “If I had a way of buying a couple hundred thousand single family homes, I would load up on them. I think it’s a leveraged way of owning a very cheap asset now and I think that’s probably as an attractive investment as you can make right now.”