27 Hill Road
For reasons unrelated to this particular house, I pulled its rental history and lo, found a pretty good illustration of what’s been going on with our rental market. This is a nondescript, 1954 house in a good neighborhood and when it was listed for rent at $7,500 in 2004 it quickly went for $7,200. In 2008, the place rented again but, after asking $7,800, got just $4,200. If you have a house purchased more recently than this one was, and are thinking of renting it out “until the market comes back”, you might want to consider this one’s fate.
Advertisement
Given the massive overhang of newer houses avail for rent, am amazed a dump like that commands such rent…sure it isn’t some Section 8 game?
$7200 is an astonishing price for this house. It is indeed on a nice street surrounded by much nicer homes but it is at the very trough of the road in a sort of dark/dreary spot, and the outside is exactly inspiring. The previous rental rate must have been a company paying because no individual in their right mind would pay that for this house.
This is a perfect example why the banks need to be in-line with reality and negotiate loan modifications for primary and investment properties. Rent rolls are down over 40% and more with no end in sight. Perhaps this should be a banner for future rejection of TARP funds. The banks need a wakeup call and realize that we are not out of the woods.
It’s a dump. $4,200 is a winning lottery ticket for that one.