As we continue to go through Morgan Stanley’s “Housing 2.0: The New Rental Paradigm” we’re more confident that 2012 will be a big year for real estate investors. For one, the financial services company boldly concludes, “…gross rents are historically attractive relative to current distressed prices. Adding to this attractiveness is the fact that multifamily data shows rents continuing to rise.”
This is a good indicator for real estate investments. Anyone who’s been active in the market clearly knows why rental properties have become precious assets among investors. And for the newbie, it isn’t that difficult to discover the logic here. A depressed housing market with very affordable properties means that demand for homes are down. This indicates that buyers opt to rent properties instead of buying a home. With this surge in rental demand, real estate investors are just as excited as everyone else who are poised to earn positive cash flows from their rental properties.