Skip to comments.Inventory of lower-priced homes plunges in California (being bought by bulk investors)
Posted on 10/31/2012 12:30:46 PM PDT by LorianneEdited on 10/31/2012 12:42:52 PM PDT by Admin Moderator. [history]
Lower-priced homes attractive to first-time buyers are in particularly scarce supply, according to a report released Thursday by real estate website Zillow.
The number of lower-priced homes available in the Golden State shrank by more than 40% over the last year, according to the analysis. Lower-priced homes were defined as those that sold for $313,200 or less. California saw the largest inventory reduction in that classification of any state.
(Excerpt) Read more at latimes.com ...
$313K characterized as a “lower price” home is kind of a mind blower. And I’m a recovering Californian.
Forget ownership - Soros and Buffett are your new landlords.
Here in Los Angeles, $313K will get you something the size of a phone booth.
Someone call me when land in LA County starts to sell. I have 22 acres in Santa Clarita that I need to get rid of.
“This is basically a big wet kiss to politically connected investment groups.”
You bet it is. It is the height of crony capitalism, imo.
And many of the current Treasury, Fed, and various regulatory body employees are ready to jump ship between now and next January for a nice cushy position at one of these REITs.
Sickening and decidely un-American.
Yeah, good luck with that.
In the late 80s and early 90s, my wife and I bought foreclosed houses, remodeled them ourselves and rented them out. No matter how careful we tried to be picking renters, nearly every one trashed the houses. It just got to be too much work to remodel them every time a tenant moved out.
If California does not get its fiscal house in order, who exactly do they think is gonna live in them?
Isn't this how Fauxcahontas Warren made her millions?
The same thing has been happening in Las Vegas. Investors from California buy up cheaper homes in Las Vegas. They pay cash and cut out the competition from people who actually want to be homeowners. Then the investors rent out the homes. Renters usually don’t take as good of care of the homes as owners. Meanwhile, the landlords live in another state and are not attentive to what is happening to their properties or the kinds of people they are renting to.
A large part of the housing bubble in Nevada was due to out of state investors, particularly from California. As the prices were skyrocketing in California, investors set their sights on Nevada where the properties were cheaper. They flooded into Nevada and bought up properties hoping to flip them. Meanwhile, demand went up and prices increased sharply. After the bubble burst, a lot of these houses ended up getting forclosed upon, and prices plummeted causing a high percentage of Nevada’s homeowners to be under water on their mortgages. Hence, Nevada became the foreclosure capital of the nation. (And Obama goes and tells people not to come here making things even worse!)
Ya...any bets as to when We the People get to bail out these behemoths that are “too big to fail”?
Remembering of course, that We the People have ALREADY “bailed out” the banks that originally loaned the money that built these?
The media keeps saying positive things about real estate. My eyes tell me otherwise, and so do my ears.
Gee, who am i going to believe?
Warren Buffett was recently interviewed and asked about this subject. He says, that while the opportunity is there, that too many obstacles are in the way for it to work. Institutional investing of single family homes, does NOT work. I’m in finance, and even looked into this myself a while back, and concluded the same.
It’s positive if you are a big politically connected investment group and you can buy up government owned foreclosures for pennies on the dollar.
Not so good for everyone else.
In your case, example, I agree. If you can utilize leverage, to buy for a criminal price, not market, yes...
Socialism in a nutshell and it's no wonder: The whole concept was cooked up by the extremely wealthy, "the beautiful lie" to be sold to serfs-to-be.