This is interesting.
Washington County is far outstripping the surrounding counties when it comes to growth in home sales. Last April, 118 homes were sold compared to the 165 that found buyers this April, marking a 39.8 percent increase in sales between this time last year and this year.
However, said Jim Emmer, president of the Emmer Real Estate Group Inc., in West Bend, that number is a little deceptive. A California hedge fund called American Homes 4 Rent has been buying properties in Washington County.
“Washington County saw a huge increase in sales, and (it) may be a sign of a new business model in the market,” Ruzicka said. “Brokers are reporting that investors are buying suburban homes to rent out for a period of time and plan to re-sell them when prices get back to prerecession levels.”
Investor home-buying has been reported in other areas of the country, too. The blog “Calculated Risk” has mentioned it recently.
It would not be wise to deal with American Homes 4 Rent. They are defaulting on about half of the offers they made, including on a home I was selling.
This has been going on in Vegas for the past few years. They pay cash for houses and then rent them off.
Not sure how will this work out, though, mainly, those who want to live in a home and use traditional financing, are not being allowed to buy their houses.
They will be holding them for a while, unless inflation kicks in.
Rent-to-own can be profitable. Although renters sometimes trash the place when they realize they are unlikely to have saved enough to buy the house before the contract runs out.