We have excess capacity in the Housing market(1 million homes were foreclosed in 2010 and 13% of all the homes in the United States are sitting empty). Banks and Investors are loosing money on these assets.
At the same time Rent is increasing across US. This is absurd. There is an imbalance.
Why can't Banks start renting the Foreclosed houses at lower rents(less than mortgage payment but they will still make some money and still own the asset for future appreciation). The Rents will be reduced across US and eventually the balance will return to US Housing market.
I think it is a much better proposition than Banks trying to sell the properties which is again reducing the value of the properties(+ve feedback loop moving the House prices downwards).
At the same time Rent is increasing across US. This is absurd. There is an imbalance.
Why can't Banks start renting the Foreclosed houses at lower rents(less than mortgage payment but they will still make some money and still own the asset for future appreciation). The Rents will be reduced across US and eventually the balance will return to US Housing market.
I think it is a much better proposition than Banks trying to sell the properties which is again reducing the value of the properties(+ve feedback loop moving the House prices downwards).
1 comment:
See the WSJ...http://blogs.wsj.com/developments/2011/08/04/real-estate-news-big-money-gets-into-landlord-game/
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