Caretaking...A Good Option
publication date: Aug 25, 2010
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author/source: Chris Prang
With challenges of home ownership and still high rental
rates, cartaking, while not real popular right now, could become a
popular trend in the coming months and years.
Caretaking basically involves someone looking out for a home as if it were their own. You might want call them a steward. Those that have this mindset can be a great asset for those that have vacant homes. Caretakers can stay in homes anywhere from one week to multiple years. The ideal caretaker would be:
So will growing rental trends undermine home sales? Let's look at what the trends might be and how each might affect home sales.
The obvious, buying is down and renting is up: As long as there is plenty of supply (and right now there is), the more people that rent, then obviously the less that buy...unless you are having a significant population increase and then you might see both go up...that would be ideal. It is a well known fact that when an area has a high concentration of rental properties, the overall value of homes in that area are suppressed...thereby making it less appealing for others to buy.
Rental prices just about everywhere are coming down: This affects home sales because people see the financial advantages of renting vs. buying...and they can be very significant. But if you are in area that is growing, then investors will desire to purchase homes to rent out.
Supply vs. Demand: There are more homes available for someone to rent or buy than there are people who need a home. That is a big one in many areas. Too much supply for to few people. This of course drive prices down even more. The only solution for this situation is either destroy a bunch of homes or do something to increase the population. Extremely affordable housing could entice people to move there, but there must be jobs go along with it.
More people are moving in with other family members: Parents with children and children with parents. This is the trend that could have a greater impact than rentals on home sales. This is what occured for centuries until the 20th century. This is the most affordable and economical way to go. It saves thousands and perhaps millions of dollars by having aging parents live with their children and children's family. One mortgage payment at most. No cost for assisted living places. Truly the way to go for the Christian family. For a whole lot less money, you can put two or more homes on the same property as compared to buying multiple homes apart.
Caretaking basically involves someone looking out for a home as if it were their own. You might want call them a steward. Those that have this mindset can be a great asset for those that have vacant homes. Caretakers can stay in homes anywhere from one week to multiple years. The ideal caretaker would be:
- Honest
- Neat and Orderly
- Able to make general household repairs and even upgrades
- Employed...i.e. not lazy and living off of someone
- Willing to pay for at least the utilities and general maintenance and upkeep of the home.
So will growing rental trends undermine home sales? Let's look at what the trends might be and how each might affect home sales.
The obvious, buying is down and renting is up: As long as there is plenty of supply (and right now there is), the more people that rent, then obviously the less that buy...unless you are having a significant population increase and then you might see both go up...that would be ideal. It is a well known fact that when an area has a high concentration of rental properties, the overall value of homes in that area are suppressed...thereby making it less appealing for others to buy.
Rental prices just about everywhere are coming down: This affects home sales because people see the financial advantages of renting vs. buying...and they can be very significant. But if you are in area that is growing, then investors will desire to purchase homes to rent out.
Supply vs. Demand: There are more homes available for someone to rent or buy than there are people who need a home. That is a big one in many areas. Too much supply for to few people. This of course drive prices down even more. The only solution for this situation is either destroy a bunch of homes or do something to increase the population. Extremely affordable housing could entice people to move there, but there must be jobs go along with it.
More people are moving in with other family members: Parents with children and children with parents. This is the trend that could have a greater impact than rentals on home sales. This is what occured for centuries until the 20th century. This is the most affordable and economical way to go. It saves thousands and perhaps millions of dollars by having aging parents live with their children and children's family. One mortgage payment at most. No cost for assisted living places. Truly the way to go for the Christian family. For a whole lot less money, you can put two or more homes on the same property as compared to buying multiple homes apart.
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