It’s common knowledge now that in previous years, some mortgage lenders loaned money to some people who never should have received a loan. That led to many defaults and foreclosures and added to the other troubles in the lending and housing industry. So we all should welcome recent credit tightening as a positive step toward helping to strengthen that part of the economy. The bar has been raised a bit on who qualifies for a mortgage and who doesn’t. Anyone who has a decent credit score and income are unaffected, but some people cannot get a mortgage now who want one.
Even in the dark woods, the sunbeams break through sometimes. One of the positive things about this is that rental properties are making a comeback. Several years ago, I heard more than one investor who owned rental properties complaining about empty units that were unrented. Or they had to lower the rents just to entice renters or compete with other properties. Several investors I know were so discouraged that they sold some or all of their rental properties. But lately I’ve been hearing that there are more renters out looking now and that rents are firming up. I’ve even been getting a few calls from investors asking about rental properties.
It certainly is something that should be revisited again since other areas of investing, like the stock market, doesn’t always cooperate like you want. You can control the outcome of an investment property more than other types of investments where you are at the mercy of the market. If you have a good rental property and are selective about your tenants, it’s truly a wonderful thing. Tenants pay your overhead while your equity grows.
If the idea of rental properties seems appealing, they might be worth a look again.
