Los Gatos, CA · Member since 2017 · 131 posts · 17 votes
I'm wondering what people here think of the climate in Georgia? It's a sellers market and prices have risen. However, Georgia is one of the few states that still allows evictions for non payment of rent during this pandemic. So, it might be wise to keep a Georgia rental. Would love to hear your thoughts.
I'm wondering what people here think of the climate in Georgia? It's a sellers market and prices have risen. However, Georgia is one of the few states that still allows evictions for non payment of rent during this pandemic. So, it might be wise to keep a Georgia rental. Would love to hear your thoughts.
You are right about price rising. It's because of we have decline in supply. I think this month and next month will be very important because the extra $600 unemployment will be gone and loan forbearance will be ending. Not sure if couple months from now we'll see a surge in supply due to this but right now if you want to sell your property in GA around Atlanta, you can still get pretty good price. It's crazy time. no one know what's going to happen honestly.
Warner Robins, GA · Member since 2016 · 244 posts · 167 votes
6y
Personally, I think the market is locally dependent. One of the largest employers in the state is Delta Airlines - they most likely will have trouble for months if not years. I have a flip under contract in an area close to the airport and it took longer than normal to get under contract. I definitely saw a slow down, and im eager to get that one off the books. My other property is in the Warner Robins area, which is based on government jobs. I havent seen much slow down there.
In general, Georgia has a diverse economy and increasing population. Im not an economic expert, but I dont see anything on the horizon that changes those factors. Jobs and population growth, as long as those hold true the market will continue to grow over the long term. The key will be identifying the correct markets within the state as the turbulent times and economy will drive changes. Will suburb heavy atlanta continue to be one of the top markets in the country? WIll there be a nationwide shift to small town america as social distancing and teleworking become the norm?
I personally am interested in some of the smaller markets. America's largest demographic (Millennials) are finally starting families. Even before the virus, raising a family in a studio apartment downtown gets old. However, the financial situation for millennials has not changed. Student debt along with a generally more frugal nature could keep them away from the McMansions of their parents generation. At the same time, regulation and materials cost continues to drive up the cost to build, and housing becomes less affordable. I think this will create a market for renovated starter homes, in the 75-200K price range. Just look at one of the more popular shows on HGTV right now - Hometown.
Rental Property Investor · Wayland, MA · Member since 2020 · 55 posts · 18 votes
6y
I can't say I know the Atlanta area very well. But I am an out of state investor and I have been growing my portfolio just south of Atlanta, mostly Clayton and Henry Counties (Rex, Stockbridge, and McDonough), for the last 2 years. Anecdotally, I am not seeing a slow down. I am under agreement on one where there were 3 offers. Also the seller on this is trying to move-up (sell this one to buy another) and the listing agent said they put offers out on 5 before they were under agreement. I didn't ask which areas they were looking though.
I'm wondering what people here think of the climate in Georgia? It's a sellers market and prices have risen. However, Georgia is one of the few states that still allows evictions for non payment of rent during this pandemic. So, it might be wise to keep a Georgia rental. Would love to hear your thoughts.
You are right about price rising. It's because of we have decline in supply. I think this month and next month will be very important because the extra $600 unemployment will be gone and loan forbearance will be ending. Not sure if couple months from now we'll see a surge in supply due to this but right now if you want to sell your property in GA around Atlanta, you can still get pretty good price. It's crazy time. no one know what's going to happen honestly.
Los Gatos, CA · Member since 2017 · 131 posts · 17 votes
6y
Excellent info @Jingru Sui. I'm wondering if there is a way to find the forbearance rate by state. I tried to google it but couldn't find anything. That would be great info to have to determine risk. Wondering if you know how to find that info? So much can drastically change in the next few months. It's so hard to predict
Los Gatos, CA · Member since 2017 · 131 posts · 17 votes
6y
I own a property in Rex @Charles Situ and I'm trying to decide if its time to sell or hold. So, glad that you are familiar with the area. It's a great area. I just put a new roof on it, new HVAC, all new fixtures, new interior and exterior paint, new flooring, Nest thermostat, etc.. It's totally rehabbed. But I didn't get it for a song and if I sell now I might break even. Wondering if I take a risk and keep it and rent it out to re-coup some of my expenses - but then I take the risk that the renters will destroy everything.(?) Seems like the answer should be obvious but I'm having a hard time deciding. Thoughts? What would you do?
Rental Property Investor · Wayland, MA · Member since 2020 · 55 posts · 18 votes
6y
@Katrina Cabral I guess on a lot details of the property and exactly what price you purchased it at. I can also connect you with my property manager who has done a great job for me if you decided to hold it. Feel free to direct message me if you want to discuss the details.
Rental Property Investor · Atlanta, GA · Member since 2015 · 53 posts · 17 votes
6y
@Katrina Cabral re: "Georgia is one of the few states that still allows evictions for non payment of rent" - this is only if yours is not covered under the CARE ACT. There are real risk for the federal eviction moratorium to be extended and many times worse to the landlords than the CARE ACT. We don't yet know the details on what the 2nd stimulus bill looks like in this regard. We know Senate resisted this notion, but Trump/WH are for it. Worst it could happen is 1 year blanket eviction ban regardless if one has a federal backed loan, or if you own the property free and clear (my case) and even worse as Elizabeth Warren wanted rent forgiveness! Probably we will know more details in regard to federal eviction moratorium by mid August. By the way I just went through evicting a 5 -6 month non pay tenant taking advantage of the system. Landlords are vulnerable at this time. I am inclined to vote for you to sell the property even though that means break even only. I see at least another half year of good time to sell before the reality of the economy sinks in. If you want to pursue the landlord route, wait till we get complete clarity on what the federal eviction moratorium extension looks like. I already placed a new tenant 7/24 then I learned a couple of days later the extension of the eviction moratorium is a real possibility. I would have taken the listing off the market had this news broken a few days before we approved the tenants, seems to be higher caliber tenants this time but I don't want to deal with risk again.