According to Realtor® and mortgage broker Timothy Powers, Alamo investors are in better financial shape now than before the housing crash.
Finally there is good news out of the housing crash, says Timothy Powers. Alamo investors are seeing an increase in profits as rentals are in demand now more than ever. There are many reasons that rentals are en vogue, says Timothy Powers. In Alamo, home values have depreciated and some people are walking away from mortgages. These former homeowners must secure housing.
Many homeowners, finding themselves upside down in a home they bought at the market peak, are now defaulting, reports Timothy Powers. Alamo lenders cannot grant new home loans for 3-5 years after a foreclosure or bankruptcy, so renting is the only choice for many. According to Timothy Powers, Alamo homebuyers must also now fork out at minimum 3% down to even be considered for a mortgage – with home prices hovering around a million dollars, that’s a hefty sum. Many residents of Alamo, says Timothy Powers, just can’t come up with that much cash.
Rentals prices have skyrocketed as supply and demand gets more and more out of balance, cites Timothy Powers. Alamo investors are buying for less and renting for more, but consumers don’t seem to mind. Even with the higher prices, people unable – or unwilling – to take out a new home loan are still getting a much better deal than buying and losing a great deal of money. According to Timothy Powers, Alamo’s rental prices range from $2,500 to over $15,000 per month.
Other factors affecting rental prices, notes Timothy Powers, are Alamo’s masses of new renters. It seems that people are more open to leasing than in years past when owning property was the “in” thing. Even among people who can buy, reports Timothy Powers, Alamo rentals are often at the top of their lists. People are holding on to cash reserves in ways not seen since the Great Depression. It isn’t just houses renters are snatching up, either. According to Timothy Powers, Alamo apartments are filling up fast, and these low vacancy properties also drive up prices.
There are a few secondary benefits to the rental boom, too. As noted by Timothy Powers, Alamo investors must hire more people to maintain these houses. More rental homes equal more jobs for carpenters, lawn services, and even administrative support staff. Timothy Powers says Alamo leasing agents are in higher demand, as are property managers. According to Timothy Powers, Alamo houses that would otherwise remain vacant and fall into disrepair are now being lived in by those opting for a lease/purchase. These renters maintain properties as if the home was already theirs – which benefits the investor, the future buyer, as well as the entire community.
If you are an investor and would like more information on Timothy Powers’ Alamo, California, mortgage or real estate services, please call him directly at (925)855-1810 x 22.
Timothy Powers is a real estate and mortgage broker based out of Alamo, California. He is the principal broker at Intero Real Estate Services and began his own mortgage firm, Paragon Mortgage Bankers, Inc., in 1996. His newest venture, East Bay Foreclosure Support, offers free financial, emotional, and physical support for military families – as well as those facing terminal illnesses – deal with the effects of foreclosure. Timothy Powers holds a BS in Business Administration and has been a licensed Realtor® since 1989.