Rent your unsold house until market improves? Probably not gonna work

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Rent your unsold house until market improves? Probably not gonna work

Thursday, July 2nd, 2009 | Economics |

The New Homeowner Hallucination: “We’ll Rent For A Year And Then Sell When The Market Comes Back”

When I asked her what made her think the market would come back when rates were going higher, availability of credit was down, incomes were down, unemployment was up and willingness and availability of people to spend was down, she had no answer.

Even more amazing was that we looked at four places in a similar price range and almost all of them had a similar strategy…”rent it out for a year and then sell when things get better”…

All these high-end people think they’ll just keep burning through capital and that everything will self-correct in 12-months and then go right back to the idiotic pricing levels that they themselves were crazy enough to pay.

You know who’s trying this strategy with their own homes? Financial geniuses FDIC Chairman Sheila Blair and Treasury Secretary Timothy Geithner. The country is in the very best of hands.

What I’d like to do is just the opposite. Sell my house now and rent until the housing market finds its bottom. The challenge I’ve had is finding a rental big enough for my family. Finding one that wasn’t ungodly expensive would be a bonus, but just finding a four bedroom property to rent in a good school district ain’t easy.

Tags: Geithner, mortage mess