Posted on Thursday, April 26, 2012
Several factors continue to align in the “buy to rent” real estate market that are worth taking a look at this morning. We previously reported one of our clients purchased a couple of distressed (I would say severely distressed) properties and rents them out, serving as landlord. So far so good on his investment here – the places are rented, the folks pay cash, and maintenance calls seem to be in check.
Another client of ours is not having a favorable experience. Maintenance costs are higher than planned and some outright capital improvements are now needed.
Still, signs point to a growing trend for buy-to-rent:
1) Rents are rising in the big cities – we think because of lack of trust in the real estate recovery, or uncertainty over future taxes and expenses.
2) Real Estate Investment trusts as an investment vehicle seem to be hot lately – although we are not financial advisors so just take this as an observation and not as an investment recommendation
3) Local builders talk about single family homes or multi unit apartment buildings to rent as some of their current favorite products
4) Snowbirds headed to Naples maybe unable or willing to sell that up north property and without capital need to rent vs. buy here in Collier County.
5) The supply of foreclosures seems to keep on coming and some predict 2012-13 will be a banner year as short sales dwindle and the legal world becomes more clear for the banks.
Florida Realtor reported yesterday of an individual working this trend we would like to share with you. “Gene Richards is a lifelong Vermonter, but on a recent weekday afternoon he found himself back on Florida’s west coast, scouting foreclosures to add to the collection of rental properties he has amassed in the wake of the housing crisis. “I just started buying them and I haven’t stopped. I have 15 right now, and I’d buy another 15,” said Richards, 51, who runs a mortgage company and also owns rental properties back home in Burlington, Vt. “This to me is a no-brainer of an investment.”
I don’t know about a “no-brainer” but clearly the buy to rent trend is on and somewhat explains the drop in inventory outside the town’s core area.
Drop us a line or contact us to talk more about buy-to-rent. In a couple of weeks I am going out to a foreclosure auction and will report back on some real live experiences in the buy to rent market.
All the best to you today.
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No legal, investment, or tax advice is being given in this Blog. Consult with legal, financial and tax professionals before acting on any real estate transaction. Actual real estate price and sales results are subject to market forces and are not completely predictable. The writings of this Blog are intended for the sole use of our clients.
Some of the data relating to real estate for sale on the NaplesBestAddresses.com website comes in part from the Broker reciprocity program of M.L.S. of Naples, Inc. The properties displayed here may not be all the properties available through the MLS reciprocity Program. This information is deemed reliable but is not guaranteed. Buyers and sellers are responsible for verifying all information about their purchase prior to closing.
Mark Goebel, PA is a REALTOR with Coldwell Banker on 5th avenue in Naples, Florida with 35+ years of visiting and living in Naples. After 25 years at Accenture, Mark retired as a managing director and spends his time helping non profits and building a Naples real estate team with his wife Nan. Talk to Mark and Nan about life in Naples and why they chose this place to live full-time over all others and enjoy Naples real estate.
Mark Goebel, PA
REALTOR Coldwell Banker 5th Avenue South
Mobile: 239.595.3921
Email: mark.c.goebel@gmail.com
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