Why are there not more rentals?

I continue to receive people looking for rental homes in specific areas. There are many reasons renters must settle for other homes.

Why don't more owners rent their homes since the market is slow? The largest reason is no one wants to be a landlord. Home owners have no interest is handing over the keys to their beloved home (and credit) in hopes a stranger treats their home like it is their own. Too many people have had too many negative experiences and sellers have very little interest.

What is in it for the seller? Once upon a time in a land not so far away. a person could get a loan on a home, rent it for a few years and home to make a profit in 3 to 5 years. This was in exchange for the the risk and additional work required to be a landlord (not to mention all of the Government red tape for tax purposes). Now that picture of appreciation looks bleak. With depreciating home values, "if" you could not break even selling your home this year, you find that next year you will be even further behind. So basically you risk your home, you jump through Government hoops and lose more money next year? Hmmmm??? Not too many people willing to work harder, assume additional risk and ultimately "pay" a larger price for time and stress. The only winner is the renter with less responsibility and no financial risk.

Another large factor is getting a mortgage on a new home. Mortgage companies lost millions because too many "landlords" stopped paying their rental mortgages due to being in a losing situation. When money gets tight, the investment home is the first bill that does not get paid. The incentive of renting has been removed.

Now lenders are very strict on providing a new home loan when you still own your other home. When the housing collapse began, many owners borrowed to get a new home at a discount. They then stopped paying on their "investment" home. Lenders caught onto this (called strategic foreclosure). Now you must put down a large down payment, have up to six months payments in savings and still qualify for the home for both full mortgage payments.

Buyers are challenged to have 3.5% down payments. Not many people have 20% down plus six months in savings. If they do, they typically have no interest in the proposition of being a landlord.

Ultimately, if you are looking to rent, take what you find. No, it is likely not to be in the best neighborhood, in the best school or for the price you were hoping to find. Naturally, you can not expect home owners to take the risk that you yourself are unwilling to take. This is not to disparage renters; you are renting because you are not interested in the risk and hurdles of home ownership. In toady's market, less people are willing to absorb that risk for you.

There are amazing deals out there. A home is an amazing place to relax and raise a family. At the right price, you can become a home owner and have this home as long as you would like. Prices have never been better. No, you are not buying a home at 2007 prices nor are you paying for 2015 prices. You pay current local market value which is actually less money than you could possibly build that home. The Real Estate market has never been in favor of buyers. The key is to work with a lender, do what you can for your credit and find that ideal home!

Charlotte Real Estate is destined to grow and the Charlotte housing market will remain in demand. Will you be looking back in five years saying "I could have bought that home when it was $______?" Or are you going to be one of those people that took advantage of the opportunity and smiling every month when your mortgage payment is a fraction of the majority of your neighbors. Your future begins today; do you stay of the fence or begin searching Charlotte home for Sale?

South Park Real Estate gets better every day!

The greater South Park area around Charlotte (technically it is Southpark as one word) continues to attract more businesses. Whole Foods is our newest entrant building its first Charlotte location in the Southpark area. It is scheduled to open in 2012!

The Southpark area of Charlotte area has an abundance of shopping and employment venues; opportunity abounds. In addition to being a few short miles from uptown Charlotte, Southpark residents enjoy the popular Myers Park Schools.

Trader Joes now has three stores in the greater Charlotte region, Earth Fare and now we will have Whole Foods. This further compliments all of our other great food venues!

When Considering the Charlotte Real Estate market, visit and consider Southpark. It is all about your quality of life!