With the housing market in such turmoil, Alamo, California’s Timothy Powers points out that one area is fluctuating: rental properties. Banks have tightened down loan procedures to the point that even consumers with good credit are having a hard time purchasing a house, Timothy Powers of Alamo points out.
Luckily for Americans, rental properties are in available, giving prospective renters a choice beyond the traditional apartment or condo rental, Alamo’s Timothy Powers says. Timothy Powers of Alamo points out that desperate homeowners, who may be unable to pay a mortgage while waiting months, possibly even years, are putting properties up for rent. According to Timothy Powers of Alamo, this creates plenty of rental opportunities for those who can’t qualify for a home or would actually prefer to rent. This group of homeowners may be risky renting from because the property may go into foreclosure and you might be expected to move earlier then anticipated sites, Tim Powers of Alamo.
Experts are saying the home market could take years to rebound, Timothy Powers of Alamo points out, meaning homeowners could be stuck in homes for years. Many of these homeowners are now “upside down” in their mortgages, Alamo’s Timothy Powers points out, meaning they owe more than they could get if they sold. Homeowners are advised to wait it out, according to Timothy Powers of Alamo, but that isn’t always an option, as forced relocation and inability to afford monthly payments force homeowners to find a way out of a mortgage.
Unfortunately, the economy has forced many homeowners to fall behind on mortgage payments, Timothy Powers of Alamo says, leading them to eventually face foreclosure. As owner of East Bay Foreclosure Support, Alamo’s Timothy Powers assists homeowners who have fallen on hard times. These homeowners often have no choice but to turn to renting, Alamo-based Timothy Powers says, and with the damage foreclosure does to credit, landlords are hesitant to rent. In addition, Timothy Powers of Alamo points out that rent costs are on the rise in general, causing cash-poor consumers to desperately seek out lower-rent properties.
Alamo’s Timothy Powers does note, however, that the market means good news for investors. The time has never been better to buy into rental property, Timothy Powers of Alamo observes. Since housing prices are lower than they have been in years and rent prices are on the rise, a landlord stands to make money right now. And, better yet, eventually property values will begin climbing again, making that investment pay off over the years.
Alamo-based Timothy Powers is a twenty-year veteran of the real estate market, specializing in foreclosures. Timothy Powers of Alamo recently founded East Bay Foreclosure Support, a business that provides free foreclosure support to families in need.