Home Ownership Rates.

[Incognito]

Pretty astounding chart.

http://www.zerohedge.com/sites/defa...geroot/2015/07/homeownership rate Q2 2015.jpg

What a FLOP all our efforts at "affordable housing" have been.

 

[havasu]

I don't understand the chart, In. They still have all the houses that were built in the 50's and 60's, and now have thousands more homes in these old areas. Exactly who owns these houses if home ownership is on the decline? The banks?

 

[Floorist]

Maybe it's like my neighborhood. When we bought this house in '92, every home on the block was owner occupied. Now, most are rentals.

 

[Ernesto]

Yup, investors. I bet you could find a surge in rental property and management companies.

 

[DarisMulkin]

Maybe it's like my neighborhood. When we bought this house in '92, every home on the block was owner occupied. Now, most are rentals.

When that happens usually there goes the neighborhood. My subdivision has been here since the 50's and so far knock on wood there are only a couple of rentals and they are kept up very well. Right now on my street and the next one over they are going through a gut job and redone.

Daris

 

[Floorist]

When that happens usually there goes the neighborhood. My subdivision has been here since the 50's and so far knock on wood there are only a couple of rentals and they are kept up very well. Right now on my street and the next one over they are going through a gut job and redone.

Daris

We have considered moving, but at my age I don't want house payments. My MIL has talked about us moving in with her at her lake house, but it is really too small and it's 20 miles from the nearest grocery store, or anything for that matter. We may be forced to though because she will need care in the next few years.

 

[Incognito]

I don't understand the chart, In. They still have all the houses that were built in the 50's and 60's, and now have thousands more homes in these old areas. Exactly who owns these houses if home ownership is on the decline? The banks?

It's a combination of "institutional" investors and individual investors who own and rent out the single family homes. I think we all know a few people, if not more who own more than one home and act as landlords. When an institutional investor buys for the purpose of creating rental income they would use a managment company to fix the toilet, roof and change the carpet when needed.

Looking at the chart it seems like an enormous change and that's correct but theres still a lot of home ownership in this country. It only looks like a dramatic and horrible failure because that market was so distorted by the crooks in our financial markets and government--------which are basically two sides of the same coin these days.

When I think about it having about HALF of the people I know are financially competent to manage their own home. The other half-------well, to be honest I wouldn't even want to rent to them. They just aren't all that honest, hard working and capable of earning enough to make that mortgage OR rent consistently over a very long period of time.

That aspect is getting worse for sure. Things are tougher out there for a young family starting out. FREAKS me out what they say our homes are worth.

 

[Floorist]

I have worked for several landlords who owned 40 or more homes. They did a lot of their own work or had a crew that did it.

 

[havasu]

My G/F's sister and her husband have rented for the last 20 years, primarily the hubby is not handy and doesn't know the difference between a hammer and a screwdriver. He laughs when I mention having to fix a toilet, or clean a clog in the drain. He mimicks picking up a phone, calling the landlord, and making him fix it.

Well, he owns two carpet cleaning franchises. As we all know, carpets are now all but extinct, and he can't get anyone to buy his business. He also doesn't have money to buy a house, because all his money went to his landlords.

They are being forced to buy a shack somewhere in Kentucky, will have to leave his family who all live locally, and has lots of regrets.

 

[DennisT]

If you rent here you're going to see rent jumps >5% every year. Landlords love renters. Rental income initially pays for repairs and a good chunk of the mortgage. After a few years it pays for everything. In the end the landlord owns a paid off property that brings in good $ every month.

 

[Incognito]

If you rent here you're going to see rent jumps >5% every year. Landlords love renters. Rental income initially pays for repairs and a good chunk of the mortgage. After a few years it pays for everything. In the end the landlord owns a paid off property that brings in good $ every month.

If you find good tenants it's a great investment. It does help to do your own maintenance and repairs. Most of the landlords I know are very.........frugal............with the upkeep. But it doesn't have to be that way.

I considered the landlord deal many time. I judt never wanted to get those phone calls to come fix things.

 

[DennisT]

When I was (much) younger and I moved I kept the home and used a property management company to act as landlord. Did that twice. Been lucky with tenants. Did have a fire once which cost the insurance company over $100K (they covered everything including lost rent). One property manager is a challenge as they seem to only have owners that don't want to spend a penny. It takes a bit of pushing to remind them that it is a home and needs to be maintained properly.

 

[Floorist]

I had a rental home once. rented to an old school friend. When he moved out after 6 months, you could not tell that I had remodeled it. Sold it for what I owed on it.

 

[Incognito]

http://www.zerohedge.com/sites/defa.../imageroot/2016/04/20/rent inflation rate.jpg

 

[Ernesto]

http://www.zerohedge.com/sites/defa.../imageroot/2016/04/20/rent inflation rate.jpg

Wow, and when that happens you get people looking to buy a house. Problem is they get suckered into an ARM like what happened during the last crash. People cann ot afford the rate hikes when it goes up up up.