I am not at all certain as to why builders are limiting or even prohibiting investors from buying in their development. However, I have been told that there is a negative impact on the neighborhoods where there are a large number of rental properties? The general experience is that renters do not take care of the property as well as owners who occupy their home. Some have indicated that lenders are less willing to loan money on homes in neighborhoods with larger numbers of rental homes. I have some doubts about the truth of what I have been told.
Quote:I have been told that there is a negative impact on the neighborhoods where there are a large number of rental properties? The general experience is that renters do not take care of the property as well as owners who occupy their home. Some have indicated that lenders are less willing to loan money on homes in neighborhoods with larger numbers of rental homes. I have some doubts about the truth of what I have been told.
I think what you have been told is true. Owner occupied neighborhoods are more desirable than neighborhoods that are mostly rental units. If I were a developer, I naturally would want to limit the sale of my lots to "owner occupied" builders, to keep the value of my remaining lots high. If I were a lender, I would want to lend money on properties in the most desirable areas I could. Obviously, banks loan money everyday on huge multi-family housing developments - but they are in areas that are suited for that type of development.
I am not at all certain as to why builders are limiting or even prohibiting investors from buying in their development. However, I have been told that there is a negative impact on the neighborhoods where there are a large number of rental properties? The general experience is that renters do not take care of the property as well as owners who occupy their home. Some have indicated that lenders are less willing to loan money on homes in neighborhoods with larger numbers of rental homes. I have some doubts about the truth of what I have been told.
Quote:I have been told that there is a negative impact on the neighborhoods where there are a large number of rental properties? The general experience is that renters do not take care of the property as well as owners who occupy their home. Some have indicated that lenders are less willing to loan money on homes in neighborhoods with larger numbers of rental homes. I have some doubts about the truth of what I have been told.
I think what you have been told is true. Owner occupied neighborhoods are more desirable than neighborhoods that are mostly rental units. If I were a developer, I naturally would want to limit the sale of my lots to "owner occupied" builders, to keep the value of my remaining lots high. If I were a lender, I would want to lend money on properties in the most desirable areas I could. Obviously, banks loan money everyday on huge multi-family housing developments - but they are in areas that are suited for that type of development.
Ron.
phenixrizin,
Glad to meet you.
You might want to look at this persons point of view.
"SLAUGHTER OF THE HOUSING SPECULATORS"
http://www.kitco.com/ind/benson/aug182005.html
John $Cash$ Locke
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