From November 5, 2011 Economist article linked below “Rising from the ruins”
This site has promoted the idea of investing in necessities at this time… food… agriculture… shelter.
This site has always promoted the idea of having assets in more than one country.
Let’s look at why rental opportunities in North America must grow.
Excerpts from a November 5, 2011 Economist article “Rising from the ruins” explains why” The housing market still looks grim, but the rental side hints at recovery
THERE are two things everyone knows about American economic recoveries. The first is that the housing sector traditionally leads the economy out of recession. The second is that there is no chance of the housing sector leading the present economy anywhere, except deeper into the mire. In the two years after the recession of the early 1980s housing investment rose 56%; it is down 6.3% in the present recovery. America is saddled with a debilitating overhang of excess housing, the thinking goes, and as a result is doomed to years of slow growth and underemployment.
The economic landscape is unquestionably littered with the wreckage of the crash. Home prices languish near post-bubble lows, over 30% below peak. The plunge in prices has left nearly a quarter of all mortgage borrowers owing more than the value of their homes; nearly 10m are seriously delinquent on their loans or in foreclosure. The hardest-hit markets are ghost neighbourhoods, filled with dilapidated properties. Housing markets are far from healthy. Yet current pessimism seems overdone. A turnaround in sales, prices and construction may be closer than many imagine.
Rental markets, by contrast, look far stronger. America’s rental vacancy rate stood at 9.8% in the third quarter of 2011, down from a high above 11% in 2009. Vacancy rates in some cities are strikingly low—2.4% in New York City, for instance, and 3.6% in San Francisco—which translates into rising rents. Nationally, rents rose 2.1% in the year to August, in stark contrast to house prices (see chart 2).
Strength in the market for rentals is beginning to seep into the more troubled owner-occupied sector. Rising rents help housing markets heal on both the supply and demand side, by encouraging renters to consider buying and through the movement of supply into the rental market, easing the glut of houses for sale. The Obama administration hopes to take advantage of better rental conditions to unload some of the more than 200,000 foreclosed-on homes held by the two government-sponsored mortgage giants, Fannie Mae and Freddie Mac, and the Federal Housing Administration (which account for roughly half of all such inventory), on to investors who may rent the properties out.
Rental-market strength is also rousing a long-dormant building industry. New housing starts rose 15% from August to September of this year, driven by a 53% surge in new structures containing five units or more. In the three months to September construction employment rose by 29,000 jobs. The sector is still some 2.2m jobs below its pre-recession peak, and new hiring there would help a dismal labour market.
So why not own Ecuador rentals?
A reader just sent me this note: Hi Gary, I am a bit disappointed in finding so few rentals from your subscribers. I am moving to Ecuador in May 2012 and want rentals to choose from. How can you make this better for renters? Thanks.
My reply was that Ecuador rentals are really tight. We personally have five Ecuador rental units and have had over 75 inquiries for the winter of 2012.
Here is a Cuenca Ecuador home for sale that offers rental possibilities.
This is a great single family house located in a small gated community close to Mall del Rio.
The Mall del Rio is the largest of three Cuenca shopping centers (Millennium Plaza and Coral Centro are the other two) and has a large multi-screen theater, bowling alley, huge food court, and over 140 other stores with apparel, electronics, entertainment and food craving you may get.
Mall del Rio
The house is just over 3,000 square feet with a nicely landscaped yard of 4,000 square feet.
This home includes a very comfortable solarium.
The house has 3 bedrooms, 2 ½ bathrooms and a separate maid’s quarters, hardwood floors throughout in a nice open floor plan.
Ecuador Living Club members receive discounts on Cuenca hotels. The savings on just a couple of night stay exceeds the club membership fee.
In Cuenca two hotels offer discounts to our readers. El Dorado and Villa Nova Inn.
We DO NOT investigate properties when they are advertised so be sure to complete your due diligence and always use an independent Ecuador attorney who represents you (not the seller) when you buy real estate in Ecuador. Also we want to be sure that you check the claims of the developer/seller and make sure that you are satisfied. We also recommend that you rent before you buy and become familiar with Ecuador.
Read the Economist Rising from the ruins