The cost of renting has fallen slightly in the last year among the top 25 largest rental markets, according to a report from Trulia this week. However, affordable listings are on the decline in metros such as Oakland and Orange County in California and Phoenix, Arizona. According to Investability Real Estate CRO Dennis Cisterna, rising rents are not creating less demand for SFR homes nor are they necessarily driving renters to become homeowners.
On whether or not it is a good idea to invest in markets where the rent is high, Cisterna said, quote, It really depends on the objectives of the investor. Most cities with high rents also have high home prices, so while your annual cash flow may be low, the investor balances out the opportunity with an asset that is appreciating over time. That being said, investors should be cautious when investing in a property based on potential appreciation. Close quote
The Consumer Finance Protection Bureau has proposed clarifications for certain provisions for borrowers in bankruptcy, as well as additional enhancements to loss mitigation requirements, as they relate to Dodd-Frank Act protections, according to the Bureau’s newest Semiannual Regulatory Agenda published in the Federal Register this week. The CFPB is reaching out to the mortgage industry and other agencies to, quote, monitor and facilitate implementation of its rule to implement Dodd-Frank amendments, close quote, to the Home Mortgage Disclosure Act.