Very very interesting. I learned something new yesterday! Yahooo!! Of course this information came from none other than Mr. Bruce Norris.
He said we are going to see more rental homes come on the market and that rents will go down. Come again? I have been walking around thinking that rents are going up since so many people are leaving their homes that are in foreclosure and they'll need somewhere to live. BUT, that doesn't seem to be the case. Bruce's position is that it is true that more people will be in the rental market- and it is also true that the many people who are trying to sell their houses - and are not behind in their payments will give up trying to sell and just rent their homes out. Therefore creating more rental inventory! Simple supply and demand here. More rentals available, lower rents. Hhhmm.
Now that we hear it, it sounds so logical- like- duh... But until I heard this yesterday - not once did I even consider it. This is really very interesting. So for those of us who are buying properties using the Land Trust this is great. When we get a home using the land trust, our tenant buyer gets to have tax benefits since they are now a beneficiary of our trust. Now instead of the "renter" only paying $1000 rent, he can now pay $1300-1500 a month for our home because of his tax breaks.
Pete and I have gone into great detail about this on our radio show The Naked Investors for 
the past couple of weeks. As a matter of fact, Pete is so good at explaining this that over the past couple of weeks I have really learned this concept - and on my own show!
You can listen to all the previous weeks since they are all down loadable. Click on TheNakedinvestors.com Radio show in the right column on this blog for more information!
