FOR decades, the federal government has subsidized housing — particularly owner-occupied housing. This has been especially true during the continuing financial crisis, with Fannie Mae, Freddie Mac and the Federal Housing Administration propping up the housing market by issuing guarantees for investors on most new mortgages.
via NYTimes.com.
Though potentially profitable, apartment investing is full of hazard.
Here are some guidelines offered to first-time investors by veteran apartment owners:
via latimes.com.
But before deciding to become a landlord, ask yourself whether you have the time, temperament and skills to manage from a distance. You’ll be dealing with clogged toilets, jammed garbage disposals, spills on carpets, cleaners and handymen. (A good rule of thumb: Budget between 1% and 2% of your home’s value to maintenance, depending on its age and condition.) You’ll also have extra costs for utilities, marketing, screening tenants and perhaps a local property manager.
via WSJ.com.
We are forecasting revenues of $14.23 billion and EPS of $.19. This would represent a 3% decline in revenues from last year’s $14.61 billion in the same period. The current analyst consensus estimates calls for revenues of $14.06 billion and EPS of $.16
via Seeking Alpha.
Billionaire Warren Buffett said the U.S. residential real estate slump will end by about 2011, predicting that’s how long it will take demand for homes to catch up with the supply.
via BusinessWeek.
The overhang of homes heading toward liquidation suggests more delinquencies and lower home prices are to come. The current “shadow inventory” including all delinquent loans, not only those that are real estate owned [REO] of troubled mortgages will likely take about 33 months-or nearly three years-to clear at the current rate of liquidations. Moreover, we believe this estimate is conservative, as we do not assume any loans that have yet to show any serious signs of distress to date will default in the future and further increase the overhang of homes.
via Standard & Poors.
Is landlording the way to go if you are starting into real estate investing today?
Home prices are falling, rents are tumbling, and apartment vacancies are rising. So why are thousands of small investors becoming landlords?
via WSJ.com.
