NEW YORK – Aug. 26, 2011 – Investors are renting out about half of the homes they purchase instead of renovating or flipping the properties, according to a new survey.
The latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, which surveyed about 2,500 real estate professionals, found that investors are struggling to resell properties so they are leaning toward renting the homes out instead. The survey estimated that investors will rent out nearly 50 percent of the properties they acquired in July. In July 2010, investors would have rented out only 28 percent of their properties.
The survey also found:
Many real estate professionals say that Congress’ debate over the U.S. debt ceiling negatively impacted homebuyer activity in July. The debate made many buyers uneasy about purchasing due to economic concerns, survey respondents reported.
Source: “Investors Who Can’t Resell, Rent,” RISMedia (Aug. 23, 2011)
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