I live in an area where college students cause an imbalance between the cost to rent vs buy (the purchase prices in the area are lower than you'd expect given the rents).
I'm constantly surprised that the market doesn't arbitrage this away. I suppose that is due to the fact that the real estate market is less efficient than others (both due to liquidity and transaction costs) and that being a landlord is harder than people suspect.
In either case, its always made me leery of rental real estate as an investment vehicle.
I'm constantly surprised that the market doesn't arbitrage this away. I suppose that is due to the fact that the real estate market is less efficient than others (both due to liquidity and transaction costs) and that being a landlord is harder than people suspect.
In either case, its always made me leery of rental real estate as an investment vehicle.