Posted on 08/29/2013 6:48:49 AM PDT by KeyLargo
Edited on 08/29/2013 6:53:23 AM PDT by Admin Moderator. [history]
More Americans are buying homes in all-cash deals, according to several recent studies. But real- estate experts say this increase may not be a good sign for the health of the housing market.
All-cash purchases accounted for 40% of all sales of residential property in July 2013, up from 35% during the previous month and 31% in July 2012, according to data from real-estate data firm RealtyTrac released Thursday. That
(Excerpt) Read more at marketwatch.com ...
Our local paper took a look and it's large companies paying cash for houses. They buy, fix 'em up and rent 'em out...
My guess is they're buying on the oft chance the housing market will explode up in value... or the dollar will crash or something will happen that will make them a bundle of money. Because renting out individual homes is not an easy way to make money. They must know something I don't...
In my area many houses have been on the market for a long time, but when they do get sold, they are shortly turned into rentals and end up being occupied by “Section Eight” subsidized renters, which will eventually destroy whole neighborhoods.
There is NO question at all that if you live in a sub division where there are Section 8 voucher inhabitants you should have moved YESTERDAY. There is no good that will come from having slugs living near you. None whatsoever.
Cash doesn’t have to mean you have the money accumulating in your bank account.You’d have cash for a home if you sold yours and bought another. Investor’s are paying cash, as are those who are downsizing.
We paid cash on a foreclosure a few years ago, too good a deal on a foreclosure with huge posibilities, we couldn’t pass on it. Like you we owned our home, and made up the difference we had in cash, with an equity loan on our existing residence (which we owned free and clear) and then we paid that off (the interest rate on the home equity loan, while we were paying on it was 2.75%), so on paper we paid cash for the foreclosure.
I know when homes were rock bottom, several folks our age who did the same, and now in our area prices are starting to rebound, so if we wanted to sell (which we don’t) we’d see a hefty profit on our investment.
So even though you may not have the “cash” in your bank account, you have “cash” available to you.
RE agents and sellers in my area are saying the cash sales are from people cashing 401ks and other retirement accounts. Some sales of 40 acres and up are to families who are then rehabbing the existing buildings and also building additional homes for family members.
There are occasional stories of foreign buyers, but they are actually living on the place, not simply investing and then renting. One local real estate mogul is buying up all the low rent multi-unit places they can, but will supposedly not purchase single family residences. This group literally owns the entire Main Street in several small villages, getting rental income from the shops on the lower levels and the apartments above them.
Buyers who think they have the upper hand are losing out when competitors bid up a property and it then sells really quickly for the higher price.
It is also common for people to first sell a larger property,as outlined above, then quickly turn around and pay cash for a smaller one.
These are all both rural land with improvements and single family homes in small towns and villages.
July 22, 2013 · 6:48 pm
Obama’s HUD Policy: Dismantle Suburbs By Forcing Minorities Into ‘Prosperous’ Neighborhoods
Prosperous Suburbs are now ‘racist’ and in the name of Diversity – Obama plans on identifying every neighborhood in America by race-population and ‘rectifying’ ”geospatial discrimination’.
Think you own your property and have private rights? Think again.
If you live in a predominantly White and /or prosperous suburb – the Obama regime says you are racist and discriminating against inner city blacks. Obama plans on addressing “geospatial discrimination’ of minorities by ‘mapping’ every neighborhood in America in regards to it’s racial make-up and financial strength. Then, HUD will impose new rules that will go out to suburbs that are not racially diverse and demand ”affirmatively further fair housing” in the suburbs for minorities. Grantees who fail to comply will be denied federal funding.
I paid cash for my home. Inheritance.
I imagine though that a large portion of the cash purchases are actually house flippers. The ones that I do business with that survived the crash are making a ton of cash right now.
I think hedge funds realize eventually all these Baraqqi/Bernanke minibucks being created are going to cause massive inflation. From what I’ve seen they buy smaller newer homes in good school districts - desireable to renters.
It’s a way to spread out their exposure beyond stocks and commodities.
Foreigners, i.e. Chinese
It could also mean people are downsizing. A lot of boomers are empty nesters and don’t near as much space as they used to. When we sold our four bedroom, half-acre, two car garage home and moved into a two bedbroom condo in 2003, it was a “cash deal”, using the equity in the former to pay off the latter.
More Section 8 Housing For Obama Voters
The Obama administration, in a major shift on housing policy, is abandoning George W. Bush’s vision of creating an “ownership society’’ and instead plans to pump $4.25 billion of economic stimulus money into creating tens of thousands of federally subsidized rental units in American cities.
http://www.liveleak.com/view?i=75c_1250607041
That’s how I bought my dad’s house. It pays to save :^)
This seems easy enough to avoid. Stop taking uncle sugar's money. Would you let the mafia do you any favors? Not if you're thinking right. Why do people think they can let Big Brother do favors for them without there being some potentially very nasty strings attached?
So... now we know what they meant when they said HUD was going to FORCE DIVERSITY in the housing market.
They’re going to PURCHASE foreclosed homes in my neighborhood, and sell them to inner city Section 8 thugs... in the name of “diversity”.
You know who’s the MOST upset by this new policy? The hard-working, successful blacks that live in my neighborhood. The very rot they worked so hard to get AWAY from, is now following them.
Wealthy Chinese Are Investing More In American Real Estate, Discouraged From Displaying Their Affluence In China
By Sophie Song
on July 11 2013 8:49 AM
China’s anti-corruption measures have been tightening since President Xi Jinping took over in December. The measures specifically target government and army officials, but as a result rich Chinese citizens are now wary of publicly displaying their wealth and turning to the less conspicuous option of investing in U.S. real estate.
While the word “anti-corruption” has always been thrown around by each administration, it seems China is serious this time. The former minister of railways, a man who owned 21 houses, was sentenced to a suspended death penalty on Monday for bribery and abuse of power, the first high-profile sentence meted out since the policies were announced in December. Other cases are ongoing and covered extensively in Chinese media.
There have been calls to investigate the property holdings of government officials’ children and relatives. An official with 21 houses under his name, dubbed “house uncle,” was arrested, as well as another with 24 houses dubbed “house aunt.”
Even those Chinese who made money honestly, in this political climate against conspicuous consumption, are careful not to display their wealth. One unexpected consequence is that the Chinese, by looking for a safe haven for their money, have become increasingly avid investors in the American real estate market.
Thanks for that info and link.
That explains the illusion of recovery nicely.
In the nicer parts of CaliforniataxyourA$$off land, property values have been soaring the past year. Many homes are selling for more than they were valued before the Soros meltdown in 2008.
Cash buyers from Texas, NY, Canada and Euro countries are ponying up the cash. Buyers from Texas and NY are leading the herds. Apparently, the buyers from Texas who have and still are making good money, are looking for some California living. Since NY City and NY in general have declared a tax war on their upper class citizens. They are voting with their feet by running from NY City and the state.
Many of the sellers are retired or close to retired, and they are opting to cash out and buy a smaller home for cash. There is apparently some way people can use a reverse mortgage to cash purchase a smaller home.
I wonder if refiing your home counts as a home sale? There are a lot of us seniors doing this as we like our homes, and we need some money to fix them up until we are carried out feet first.
But, but, but..
The Obama media group headlines say that all is fine and rosy.
Happy Days are Here Again!
US economy grew at 2.5 percent rate in spring
http://apnews.excite.com/article/20130829/DA8FKMH80.html
Obama:
CBS NEWS
Aug 28, 2013
Economic justice is the “great unfinished business” of March on Washington
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