As the Price of a Home Falls: The Cost of Rent Rises

May 08, 2012 / Russell Legato, Residential Property Analyst

Real estate investors take opportunity to purchase at low prices and then rehab the property and rent it at a substantial rent. The cost of rent has increased concomitant with the increased number of foreclosures. Those who lose their homes must have a place to move to. Thus, rent rates are going up. In Dallas, selling prices for existing homes declined six months in a row. Investors jump in to take advantage of these opportunities.

As the Price of a Home Falls: The Cost of Rent Rises

Those who can afford to invest are having a good year. There is one franchise, the “We Buy Ugly Houses® franchise” reports it to be a buyer’s market for people who want to rent out single family homes.  They have grown due to the current conditions and what transpired in the real estate market in the last five years.

This opportunity will remain open until the economy in general and the employment situation in  particular recovers. A business called Home Vestors takes a potential investor through the process and facilitates his ability to buy houses within a short time. They have a one week training program. The student takes advantage of all their advertising investments on television, radio and other advertising venues.

Home Vestors of Dallas has purchased 50,000 houses since 1996. Known by the attention-grabbing name of “We Buy Ugly Houses” they are listed as one of the Franchise Business Review’s top 50 franchises. This is not a small accomplishment, but rather a distinctive award.

The last five years of the shocking events in the housing market were tragic for many homeowners. For others, the investors, it was a favorable opportunity. The real estate market led to higher rents for properties due to the large number of displaced homeowners needing a place to rent. It was a logical turn of events that followed the law of supply and demand.

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