This piece from MarketWatch looks specifically at how one company in Chicago invests in the foreclosure market. They are very selective when choosing the properties they invest in not to different from a regular home buyer where location, location, location is the name of the game The company plans to purchase nearly 250 homes in 2012.
This is exactly my thesis for getting involved in a name like Lowe's as I had described in my week 8 performance post [February 25, 2012 Week 8 2012 Performance.....Things keep rolling along]. Although the level of new houses being built is at all times lows, the remodeling and home improvement space is picking up some of the slack.
I personally know people in the metro Detroit area where I live that have businesses such as the one in this video. One tailwind helping their business and this industry is the fact that it is harder to get a mortgage than it was before the housing bubble popped. This forces more people into rentals rather than buying even though they may have the means to pay. This is something that I believe has influenced increased rental rates.
No comments:
Post a Comment