Author Topic: Rental market implosion in Lakewood- implications  (Read 8673 times)

Offline yuneeq

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Re: Rental market implosion in Lakewood- implications
« Reply #30 on: May 02, 2017, 07:32:31 AM »
I have no advice for the short term, but over time, more and more young couples will be arriving renting more and more apartments.  So the glut will be absorbed.  Those with the financial means will weather it.  Those without....

The glut will only be absorbed if new construction slows down.
 I haven't seen a slowdown at all. Maybe in a year or 2 we will see a slowdown in new construction.
If you look at new applications you'll see a few projects of 500+ homes each, some as large as  936 homes (plus basements), doesn't look like a slowdown at all.
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Offline AsherO

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Re: Rental market implosion in Lakewood- implications
« Reply #31 on: May 02, 2017, 07:39:51 AM »
The glut will only be absorbed if new construction slows down.
 I haven't seen a slowdown at all. Maybe in a year or 2 we will see a slowdown in new construction.
If you look at new applications you'll see a few projects of 500+ homes each, some as large as  936 homes (plus basements), doesn't look like a slowdown at all.

So there's demand for houses to buy but not much demand for rental units?
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Offline churnbabychurn

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Re: Rental market implosion in Lakewood- implications
« Reply #32 on: May 02, 2017, 07:55:00 AM »
The glut will only be absorbed if new construction slows down.
 I haven't seen a slowdown at all. Maybe in a year or 2 we will see a slowdown in new construction.
If you look at new applications you'll see a few projects of 500+ homes each, some as large as  936 homes (plus basements), doesn't look like a slowdown at all.
Look at prospect St. lots of the developments are on hold. Rusting tractors etc.
Whoever can afford to stop building stopped.

Offline yuneeq

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Re: Rental market implosion in Lakewood- implications
« Reply #33 on: May 02, 2017, 08:25:32 AM »
Look at prospect St. lots of the developments are on hold. Rusting tractors etc.
Whoever can afford to stop building stopped.

Didn't notice that existing projects were stopped
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Offline Moshe123

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Re: Rental market implosion in Lakewood- implications
« Reply #34 on: May 02, 2017, 08:28:22 AM »
So there's demand for houses to buy but not much demand for rental units?

Yes. People want to buy, but are relying on a rental to help pay the mortgage. However, with everyone buying, fewer are renting and there aren't enough renters to help with all the mortgages.

This problem doesn't exist in other areas, because the rental demand is still very high.

Offline Eliyohu

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Re: Rental market implosion in Lakewood- implications
« Reply #35 on: May 02, 2017, 08:32:11 AM »
Look at prospect St. lots of the developments are on hold. Rusting tractors etc.
Whoever can afford to stop building stopped.
Which ones are on hold? Prospect square is going full force, prospect hills is about to start, behind williams just started, prospect corner they're still trying to get the next piece of property/zoning.. duplexes past prospect vines are starting as soon as the vines are complete...

Offline AsherO

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Re: Rental market implosion in Lakewood- implications
« Reply #36 on: May 02, 2017, 08:57:13 AM »
Yes. People want to buy, but are relying on a rental to help pay the mortgage. However, with everyone buying, fewer are renting and there aren't enough renters to help with all the mortgages.

This problem doesn't exist in other areas, because the rental demand is still very high.

If the buying people are all relying on rentals, which are a dud, then the buying market should slowly grind to a halt.

Maybe I should consider a move to Lakewood, housing in Brooklyn is out of control.
« Last Edit: May 02, 2017, 09:00:23 AM by AsherO »
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Offline Moshe123

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Re: Rental market implosion in Lakewood- implications
« Reply #37 on: May 02, 2017, 09:15:54 AM »
If the buying people are all relying on rentals, which are a dud, then the buying market should slowly grind to a halt.

Maybe I should consider a move to Lakewood, housing in Brooklyn is out of control.

The natural progression is for existing house prices to fall, new building halted because of profitability questions, and the cycle starts all over again. Less houses, prices go up, more rentals, more developments, and...

Offline jye

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Re: Rental market implosion in Lakewood- implications
« Reply #38 on: May 02, 2017, 09:17:14 AM »
If the buying people are all relying on rentals, which are a dud, then the buying market should slowly grind to a halt.

Maybe I should consider a move to Lakewood, housing in Brooklyn is out of control.

Why buy when u can move to Lakewood and rent a brand new 5 bedroom townhouse for $1600 a month?

Offline jye

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Re: Rental market implosion in Lakewood- implications
« Reply #39 on: May 02, 2017, 09:42:44 AM »
Here's a prediction for the Toms River and Jackson market:
an initial bump due to the rental situation in Lakewood, then a drop as the Lakewood house prices come down, and rentals stabilize. Then in a couple years, Jackson and Toms River have sticker shock from private school bussing costs so they switch to co-ed bussing, resulting in Toms River and Jackson parents paying out of pocket for private transportation. This makes housing unattractive for large families, further depressing prices....

Offline AsherO

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Re: Rental market implosion in Lakewood- implications
« Reply #40 on: May 02, 2017, 09:46:03 AM »
Why buy when u can move to Lakewood and rent a brand new 5 bedroom townhouse for $1600 a month?

How much is the mortgage on the same townhouse? In some markets your monthly mortgage bill (after 20% down) is less than rent on the same property.

If renting, I'm not building equity and my rent might go up if the market tightens.
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Offline aygart

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Re: Rental market implosion in Lakewood- implications
« Reply #41 on: May 02, 2017, 09:54:07 AM »
How much is the mortgage on the same townhouse? In some markets your monthly mortgage bill (after 20% down) is less than rent on the same property.

If renting, I'm not building equity and my rent might go up if the market tightens.
There are legal limits to how much a landlord is allowed to raise rent.

BTW, I like your version of my sig's concept.
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

Offline jye

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Re: Rental market implosion in Lakewood- implications
« Reply #42 on: May 02, 2017, 10:15:57 AM »
How much is the mortgage on the same townhouse? In some markets your monthly mortgage bill (after 20% down) is less than rent on the same property.

If renting, I'm not building equity and my rent might go up if the market tightens.

At around 500-500k purchase price mortgage plus taxes etc. is probably close to $3000 a month minus whatever the basement will bring in....

Offline Mordyk

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Re: Rental market implosion in Lakewood- implications
« Reply #43 on: May 02, 2017, 10:16:46 AM »
How much is the mortgage on the same townhouse? In some markets your monthly mortgage bill (after 20% down) is less than rent on the same property.

If renting, I'm not building equity and my rent might go up if the market tightens.
rental income for full townhouse should be min. $1600 and for basement Min. $800    should almost cover a mortgage if someone put down 20%.

and a side note is that people need real lessons in finance to explain that you can't buy a house with an assumption that you will have a basement renter for 12 months out of a year.  way to many people make that mistake and get into problems...

Offline Moshe123

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Re: Rental market implosion in Lakewood- implications
« Reply #44 on: May 02, 2017, 10:21:37 AM »
How much is the mortgage on the same townhouse? In some markets your monthly mortgage bill (after 20% down) is less than rent on the same property.

If renting, I'm not building equity and my rent might go up if the market tightens.

The mortgage is higher than the rent income for the townhouse and basement currently.