More investors are buying properties to rent out, but not everyone is cashing in.
Eager to cash in on one of the strongest housing markets in the postwar era, speculators and even average investors are buying homes and renting them out until they decide to sell them at presumably far higher prices.
...The economics are relatively straightforward. If home prices rise too much or the cost of borrowing increases, those seeking shelter may not be able to afford the monthly mortgage payment. Instead, they may find it less expensive to rent. This will remove potential buyers from the market - particularly if landlords are offering incentives to rent."
Thanks to Tom Collins
FULL STORY: Latest fad in housing: Buy, then rent
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