re: I put my money where my mouth was - I'm out baby, I'm out!

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The 'ole inflation bear is eventually going to join the party here. He's been hibernating for many years and this time he means business. No way the govt. pumps this much free money into the economy w/out it.

That is what scares me about renting for another year, which I plan to do. Having hard assets (like a house locked in at a good rate) is extremely advantageous when everyone is hauling wheelbarrows of money to the grocery store.

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I can kind of hear this argument, but I'm not sure I buy it. For one, if people are hauling wheelbarrows of money, you just won't have a job. More realistically, there is a massive inventory of condos and houses out there. That is going to be pushing rents lower.

But I could be wrong. I've made my bet, and I'm happy with it.

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This is worth almost 25% of your net worth right there. Being able to not look back and say - what if.

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My wife probably spends most of her days having this exact thought about marrying me.

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Be careful with that assumption. All those foreclosed upon previous homeowners have to go somewhere. They will be looking to rent. And the bank ain't going to get into the landlord rental business any time soon. So, a lot of those foreclosed homes will stay on the mkt while (I surmise) the amount of renters pouring into the rental market will stay slightly ahead of the inventory of rental properties available.

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Probably depends on where you are. Remember that a lot of people have 2 and 3 homes going at the same time. And lots of big cities have literally thousands of empty condos nearing completion.

Perhaps what I should have said that rents for houses will come down. I can't speak for apartment unit rentals.

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And I'm interested in this because I'm wondering if I should start investing in some rental properties/apts.

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You should only do this if you are buying at hugely distressed prices from the bank.

LINK

As an example, I read a recent article about a couple here in ATL who had bought 3 properties within the last 3.5 years. On one property alone in Atlantic Station (which was a very high demand location near G Tech) the value of the condo had dropped from $350k to $175K in the past 12-14 months. There are so many empty units there that there is zero possibility they could rent it for positive cash flow. From their job descriptions I would be shocked if they don't lose all three properties.

While I understand JT's and CPB's outlooks, there is very little likelihood I could rent a house the size I have with a one acre yard for what I currently pay having owned the house 10+ years. The market in Vinings/Smyrna would have to drop another 40% to drop me to zero appreciation, I am not going anywhere. Then again, I am one of the freaks that still owns equities and am sitting on 3+ years in cash living expenses and spouse has a career in a recession proof industry unless the fed govt and Medicare disappear. Someday the gloom and dooming will end.

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The location factor can't be understated with respect to this question, and I think it really depends on what part of the market you're talking about. The apartments around LSU that have been $450-$550 a month for a decade? Probably not changing prices, for obvious reasons. That just finished condo in downtown NYC or Chicago that some guy paid $3000/sq. ft for 3 years ago and just got finished? He's got to be pretty desperate to get someone in there, especially since he knows everyone else in his building in likely in the same boat he is. That was just a long-winded way of me saying I think the higher-priced rental units in some areas will come down to more affordable levels, while the more moderately priced ones will probably absorb the bulk of those foreclosed individuals, so those might actually start to see some upward pricing pressure.

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yes, and I'm definitely leaning towards the "slum lord" side of the spectrum as opposed to high end.

target audience, imo, would be those who have good incomes, but just got in over their heads on their house.

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People, listen to me: DO NOT PAY "FULL" PRICE FOR A HOUSE. Just bide your time and buy it from the bank at 50 cents on the dollar.

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It will be like this in many areas of the country. Non-waterfront in FL. Many places in CA...

Oh, for $575K what size house are we talking about?

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Oh, for $575K what size house are we talking about?

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3200 sq ft, 3 car garage, decent-sized back yard.

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3200 sq ft, 3 car garage, decent-sized back yard.

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You got out a good time, I think sales on this size house will plummet in the next five years. Sheeple will be scared into actually living within their means.

I was scared pretty badly a couple of months ago, but my size house is still moving pretty well in my area (close to an AFB and its the size most military families go for).