The recent events in the sub-prime market have raised the bar on obtaining financing. Buyers are most likely going to have to cough up a few bucks to buy anything, unless they have great credit scores and history. This is great news for Long Beach landlords. You are not going to have any problems filling up those vacant Long Beach units. We may actually have housing shortages in some areas.
It is natural that tenants become first time home-buyers. Not right now folks! Unless they have a decent down payment, it's just not going to happen, equating to long term tenants. With so many foreclosures on the horizon, the displaced owners will require housing, increasing rental housing demands.
Supply and Demand
When supply is down, demand is up. Rents are going to begin to increase with the demand for available housing. Who knows, maybe the rents will actually begin to justify the absurd recent prices on some of the investment properties recently and currently on the market. It may not be a bad time to look into purchasing a reasonably priced Long Beach Investment Property, if you can find one.
The recent re-development in Downtown Long Beach has created a lot of available but not so affordable housing. Lets face it folks, if these people can't afford to buy, or are coming out of a foreclosure, they are looking for rentals they can afford. With more high rise development on the way it raises the question, where is the affordable housing?
In Downtown Long Beach, affordable rental housing can be found in the Willmore City Historic District and in the East Village Arts District. Alamitos Beach is still affordable but gets a little pricier, rentals in Belmont Heights and other Long Beach CA Beach Communities have stayed surprisingly reasonable. The Circle area, Bixby Knolls, California Heights, Wrigley Heights, North Long Beach, Lakewood, Signal Hill and Signal Hill neighborhoods are likely contenders for housing the coming demand. If you have been contemplating the purchase of Long Beach Income Property, now might be a good time to think about putting that plan into action. Read more »
| Laurie MannyLong Beach Realtor (562) 212-5420 |
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Main Street Realtors Belmont Heights 244 Redondo Avenue Long Beach California 90803 |
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Laurie I was just thinking about this because I recently sold a rental apartment building. Yes the rental market should be doing well. I like your advise of now is the time to make the necessary improvements then the opportunity will be there to ask higher rental.
Great Post Laurie,
It is probably time to go through the list of Investment buyers for rentals.
I have 7-plex listed for less than three weeks. I am getting several calls a day and already have mutliple offers and am in the countering stages for the 2nd time. That confirms what you are saying is also happening here.
Aloha from Oahu
Jennifer, Herb & Randy,
I think there will be a curve, as the foreclosure market gets worse the rental market will improve. It is a good time to think ahead. I am not surprised that your listing is in such demand Randy. There is a silver lining in every cloud, even dark ones.
Laurie, you are right on about this. It makes it a great time to purchase rental properties before the prices start going up due to increased rents. It just proves again that the market is NOT bad all over. It just depends on what part of the market you are playing in.
Kudos. This is a GREAT post and quite true.
Laurie...
I'm playing in the "super" market :)
It's time for me to go house shopping now. LOL..
Elderberry? Ben. Aren't you tired of doing that to me yet? :)
TLW...ROAR!
Bryant, Yep, going to start looking around for good deals and calling my investor clients when I find them.
Kelly, Thank you.
TLW, Go buy an apartment building hun, just not near the lake, lol.
Very well said. And the other thing about it is, only be a first time home buyer when you can afford to be one!
Really good idea, Laurie. You're right. The homeownership rate is over 60% today; it was around 50% in 2002 (and historically was under that). There are some who believe that the last 10% were renters who "forced" homeownership.
If you "dump" those residents back into the rental market, landlords MUST benefit.
Carole, Thank you and I wholeheartedly agree.
Brian, Thank you, lets hope we don't dump 10% back into the rental market, it would be tragic, however good it is for the investment market.
Laurie.... I will agree the others in here, very good post and topic at hand. You are so right on with this topic right now and it actually makes sense. What's funny is that I am not seeing much discussion in regards to the housing market vs renters. I just wrote a blog yesterday that talked about the economy per se and William Collins mentioned the same as you did in his comment. Good post..