How the Eviction Moratorium will Affect the Real Estate Market
Barb Schlinker Radio Show
719-301-1802 | 719-301-3900
Your Home Sold Guaranteed Realty Colorado
We know that people do not live in their homes the same way they have their homes on the market. Recently we read in the news that Governor Polis put a moratorium on Evictions if the tenant can prove their financial hardship is due to Covid. What impact will this have on the Real Estate Market? First of all, I know there are some career fields that are being harmed by this awful pandemic. I think this ruling does have some merit, but I can see how it could be abused. I also think it has a negative impact on investors to be motivated to purchase rental real estate. There is at least 1 buy and hold investor in this market who just increased their maximum cap on investments because the prices are rising pretty quickly.
I do think the negative impact though for tenants, is that it will be harder for them to qualify for rental homes and townhomes because they will be scrutinized a little harder.
In my opinion, often when the government gets involved it’s not helpful. Think about how this law affects landlords. Some are unwilling landlords like our many military members If they decide to be a landlord and don’t have enough cash reserves if the payments are not made, could put them in real financial trouble. With the market values rising so fast this year if you are a military member conflicted about renting or selling give us a call at 719 301 3900. The Governor put an eviction moratorium on landlords, how can this affect the real estate market?
#1 it could make would-be investors think twice about investing in this area: As an Example: We have a big corporate investor that buys here… They buy in 55 real estate markets. They pay price, sometimes over full price CASH for homes. They suspended their buying in 10 markets because of these laws. Not yet in Colorado Springs, but it would not surprise me it that happens after this moratorium was put in place. One thing I advertise is my database of Buyers, and I have a NEW BUYER Alert I want to Highlight: A couple leaving California and moving back to Colorado Springs. We will be out shopping this weekend in a price range up to $500,000 and they are not really picky as far as style. They just want a well-cared for a home closer to Children’s Hospital with a nice, more private back yard. This is clearly a really busy real estate market and if people are thinking of selling their homes I would only recommend you…When we come back, we will be discussing: How to Compare Rent Payments vs Mortgage Payments
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