“My girlfriend and I have been looking to rent in the tricities, looking at roughly 20 properties so far. The prospective landlords seemed pretty desperate; most seem to have bought as “investors”. A lot of them called us back when we didn’t contact them.”

“My girlfriend and I have been looking to rent in the tricities for a few weeks, looking at roughly 20 properties so far. The prospective landlords seemed pretty desperate. A lot of them called us back when we didn’t contact them after a showing, we were able to negotiate 10% discounts (on average) and short-term contracts. Most apartments were in the $1000 to $1200 range and seem to be hard to rent out. Most landlords seem to have bought as “investors”, one guy even using student loans. There definitely seems to be an oversupply of rentals (at the current price of $1100 for a 550 – 800 square foot, fairly new building with granite countertops etc landlords re-advertise for weeks on criagslist, indicating a difficult market for them). I see this as the first step of “reality kicking into gear”. Once these people can no longer pay their mortgages and fees (most places sell for about $300K, making a 25 year 0 down mortgage roughly $2000 a month plus $250 condo fees plus $250 tax, adding up to $2500, double what rent would generate) the foreclosures will begin. Of the $2500 a month, $800 are interest, making the “carrying cost” of taxes, int. and fees a total of $1300… they literally lose $200 every month if prices are stable. If they drop, they are even worse…”
suspectum at VCI 1 may 2012 1:01pm [hat-tip jesse]

2 responses to ““My girlfriend and I have been looking to rent in the tricities, looking at roughly 20 properties so far. The prospective landlords seemed pretty desperate; most seem to have bought as “investors”. A lot of them called us back when we didn’t contact them.”

  1. Went to go see a place in New West and the owners emailed me the application and offering $500 off the first month rent. Definitely a renter’s market! So many vacancies all over the place!

  2. Renters Revenge

    It’s the way to live here in the BPOE. Let the landlord subsidize your living costs. Really, why would any sane person buy instead of rent in this market?

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