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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (945)	10/25/2001 1:56:54 PM
From: Squidman	Read Replies (2) \| Respond to of 306849

<So recently the dynamic has been soaring house prices and rising rental vacancies>. Could anyone explain to me the usual relationship (if any) between the cycles for Residential and Rental property? I am holding off on buying a house because I think prices will drop. However, I have been considering buying an apartment building because, with current loan rates, the potential return is looking increasingly attractive even though building prices have increased. My concern is that rental property prices could drop together with housing prices. On the other hand, I could imagine that the demand for rental property might increase at times when loan rates are low and the return on alternative investments is low. I don't expect vacancy rates in my area to change very much with the economy since the renters are mostly students. Is there a "best time" to buy a rental property during a housing downturn? Squidman