New lending standards, what’s your prediction?

[Nick Rutkowski]

I’m hearing on the internet, television, and BP the lending standards for big banks are starting to change. Some theorized prices for housing will fall, others think nothing will happen and we’ll all go back to our once “booming” economy. What do you think will happen?

[Cameron Tope]

I don't think we'll have a housing market issue.

The jobs that are lost are mostly small businesses and low-paying jobs, which the trillions of stimulus money will assist. The high paying jobs are either furloughed (for a few weeks) or working from home. These people are still making mortgage payments and buying properties.

I don't think you're going to see the 10% appreciation growth like you have in the past but a more sustainable 2-3%. Rentals are going to be more popular because tenants are using savings (which they had saved for a downpayment on a house) for living expenses, making them tenants for longer.

I think the only people that are going to get hurt are the clowns that need 10% appreciation and rent growth to make their syndication deals look enticing to new investors that don't know any better.

The investors that buy (and continue to buy) solid cashflowing rentals will be fine.