

Why when house prices fall, rent increases. - babul
http://news.bbc.co.uk/1/hi/business/7404947.stm

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dhbradshaw
I think it is half true. Apartments and low-cost housing options have come up
in price while homes and higher-cost housing options are a great rent
opportunity.

Basically, people are migrating toward rentals because they don't want to buy.
That means that well known and easy to find renting options are in higher
demand. But it also means that a lot of nice properties are sitting fallow.
These properties may not be marketed very well--that isn't the focus of the
people holding on to them. So there are great deals to be had in the higher
end rental market.

We ended up selling our home to move into a town for a short space of time
(two years). We found a beautiful property and have been renting it for only a
small percentage of what PITI would have been, which means that we are paying
for a 5 bd 3 bth home in a beautiful neighborhood with a great yard about 10%
more than people are paying for 2 bd 2 bth duplexes in mediocre neighborhoods.

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dpapathanasiou
Another factor right now (in the U.S. anyway) is that financing is more
difficult to get, even if you have good credit.

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somabc
WTF! so renters get shafted no matter what. If house prices are rising they
rise to fast to save a deposit / keep pace with salaries. And if they fall
rents rise again eating into your ability to save. Its even worse with banks
requiring 25% deposit for 1st time buyers

eg £180,000 purchase price deposit £45,000

Average UK salary is less than £30,000 and the average graduate can expect
£10-20,000 of debt to pay off first.

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babul
It is true for most of UK and many parts of USA where friends I have are
based. Is it also true for where you are?

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ardit33
San Francisco rents have reached the doot com boom level. It is pretty bad.

I got my 2 bedroom apt (with a roomate) for 1850 two years ago, and we were
happy as it is relatively cheap for a good apt. Few months ago, the same kind
of a apt. right above us, rented for $2300. While the 1 bedroom. next door,
rented for $1800.

