Mortgage meltdown : vulture investors

Real estate investors find a good lure in depressed markets, they think that the markets are ready to bounce back.
Many housing markets in Florida are looking at double-digits drops in housing prices.

Vulture investors are putting their money in this targets, they buy cheap in the hope that prices will rebound. More specific: local housing markets that have fallen far, but still have potential to recover soon.
They believe in the long-term viability of the real estate market in Florida, but they are buying on rental economics. In former times people had purchased on condo economics, but nowadays these numbers no longer apply.
Demand for rental housing has grown, due to the mortgage meltdown mess and vulture investors react to this fact. They are looking for discounts off previous condo prices to make their purchases viable, then they convert the apartments back into rental units.

In first instance I think it’s good that they are doing something to the whole housing problem in America. Many Americans live above their standards, and this phenomenon also appears on their housing lifestyle. People look at their houses as if they were symbols of status. Nowadays home ownership has reduced and the demand for rental housing has grown, this should provide a price-safety net.
But vulture investors don’t buy houses because it’s a solution to Americas problem. They do it for the return of it. People don’t call them “vultures” for nothing. As a fact they contribute to the matter, in short term it’s a good thing for the citizens. They receive a nice amount of money, but they don’t own a house anymore. At long term, they have to pay more and still don’t own a place of their own.
In my opinion, the government should be the first to react to the matter. The vulture investors look to areas with job growth and low unemployment, but what about the other zones, who struggle even more with debts?!?

Laura

Source: http://money.cnn.com/2007/09/24/real_estate/vultures_circling/index.htm?postversion=2007092718