miat42, lower housing price leads to lower rents, because

a new investor pays less for a property, he/she will be able to afford lower rents to make up positive cash flow.
One or two properties sold for lower, will not affect anything. But if it is the trend, meaning the new owners more likely rent them out for less.

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You have good logics. But you missed one important factor -miat42- 给 miat42 发送悄悄话 miat42 的博客首页 (1516 bytes) () 12/19/2007 postreply 19:35:37

But in the past years, almost everyone who got fair credits -mnosense- 给 mnosense 发送悄悄话 mnosense 的博客首页 (520 bytes) () 12/19/2007 postreply 21:41:44

Zero housing price, $10000 rent were also possible. -山高月小- 给 山高月小 发送悄悄话 山高月小 的博客首页 (72 bytes) () 12/20/2007 postreply 06:16:25

I suggest that you do some researches yourself: -miat42- 给 miat42 发送悄悄话 miat42 的博客首页 (1124 bytes) () 12/20/2007 postreply 10:38:19

good points. Thanks! -mnosense- 给 mnosense 发送悄悄话 mnosense 的博客首页 (0 bytes) () 12/20/2007 postreply 12:54:42

On the contrary, usually lower Price - higher rent -SZHOU888- 给 SZHOU888 发送悄悄话 SZHOU888 的博客首页 (14 bytes) () 12/19/2007 postreply 19:54:37

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