Real Estate; 60,000 homes for rent in San Diego? Continue reading on Examiner.com Real Estate; 60,0

[Synicus Maximus]

Source: San Diego Real Estate Examiner

It was announced today that the Obama administration is proposing a new program to help stabilize the housing market. The proposal would allow renters to rent foreclosed homes, rather than sell the homes on the open market. In San Diego, nearly 30,000 homes are foreclosed upon each year. The idea is to reduce the glut of housing offered for sale. With fewer homes being offered, prices could stabilize and perhaps appreciate. In San Diego, home prices are falling while rents are increasing. This new program could reverse this trend.

The program would involve homes that were foreclosed upon by the U.S. government---homes with mortgages formerly encumbered by Fannie Mae and Freddie Mac loans. Private lenders could still flood the market with their own REO properties.

Continue reading on Examiner.com Real Estate; 60,000 homes for rent in San Diego? - San Diego Real Estate | Examiner.com http://www.examiner.com/real-estate-in-san-diego/real-estate-60-000-homes-for-rent-san-diego#ixzz1Sy4jL3sm


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[Ruby the Liberal]

1. Who would manage these homes - collect rent, maintenance, etc?

Would this be a standard lease, one lease per state? What in the case of local requirements?

Lots of questions to this one.

[Wait Wut]

3. My husband just said they could hire property managers.

I see a lot of benefits to this proposal if done properly. Open up the lease options.

Yes, lots of questions, but I think it's a great idea, especially if it keeps renters from being gouged and possibly opens up an opportunity to purchase in the future.

[customerserviceguy]

4. I've got a lot of questions, too

Like, who eats the losses on the rentals? While the Federal government wouldn't be taking any depreciation write-offs on these rental houses, there's still a good chance that the rents will not cover costs. No, there may not be any mortgages on the foreclosed houses, but keeping them off the market ties up money that must be otherwise borrowed. That's cheap at current T-bill rates, but it might not always remain so.

A "real" owner can cruise by the place every now and then to make sure that the management company's doing a good job. I can see both tenants and management companies not giving a damn about the places, and having many of them fall into serious disrepair. I also envision that it would take a lot longer for a government agency owning 60,000 dwellings to evict nonpaying tenants, than it would for someone who wants to get the place re-rented as quickly as possible.

[Trajan]

2. I am beginning to think we should just let home prices fall ....

They should match, more or less, the ability of citizens to pay for them ....

Because the credit bubble of the 1990's and early 2000's falsely inflated the demand for real estate, now that the bubble has burst, Home values should float back to where they should have been without the bubble ..... As painful as it might be, we may want to see housing drop further ....

IF we are unable to gain increased income in this weak assed job market .... Perhaps it would be more effective to have costs and expenses deflate in value to compensate for the reduced wages and income ....

Maybe ....

[aquart]

5. I take it there's no chance YOU will lose YOUR home?

[Trajan]

8. I sold in 2005 ...

I am renting now and unwilling to jump in at this point ....

I feel sorry for those who are struggling ... But there is no doubt the market was inflated beyond reason ....

It isnt up to me ..... But I expect the market will adjust on it's own without my intervention ....

There is something else to consider - What of those who want to buy a home now but cannot afford the high expense in today's market ? .... Why should the market be held up by extraordinary means, so that many potential buyers are kept out ? ..... Nature will dictate how this will evolve, and it seems it will move prices down farther .....

Our emotional appeals really wont matter much ...

[begin_within]

6. Seems to me that would really just benefit the owners of those properties.

The reason there are so many vacant homes in San Diego now is that the owners of them are unwilling to sell, because prices are dramatically lower than they were 5-6 years ago. One house 5 houses down the street from me was for sale for $1.3 million 5 years ago, now is asking $650,000, a 50% cut, for the same house. So many owners are hanging on to the houses instead of letting them go at these prices, in hopes that the market will go up again and they won't end up taking a loss on the property. That's exactly what the people directly across the street from us are doing: renting out the house at $2000 per month instead of selling it at a loss. I don't see why there is any need for a new program to help these owners out. There is really nothing stopping them from renting out the houses themselves, or just hiring a property management company to handle it for them.

[davsand]

7. Who and HOW will they determine market rent for these places?

While it sounds good on the first look, I can easily see some brainiac setting the rents out of reach of anybody earning an average income. Part of the problem facing families right now is they just can't make enough money to keep going. Food costs more now, utilities are higher, and the cost of housing--even if it is rent--is just too high.



Laura

[KansDem]

9. It's just going to get worse, I'm afraid

As Boomers begin retiring, they'll want to sell their "nest-egg investment" to help them in retirement. But with more sellers than buyers (younger workers are hardly seeing the kinds of jobs that marked the post-WWII economy), it'll be difficult to see the kinds of returns that their parents were able to take advantage of...