Posted on 06/13/2021 11:57:39 AM PDT by Hojczyk
A conversation on Twitter this week resurfaced a Wall Street Journal report from April about big investors getting into real estate, overbidding normal people to do so. “If You Sell a House These Days, the Buyer Might Be a Pension Fund,” the title says. “Yield-chasing investors are snapping up single-family homes, competing with ordinary Americans and driving up prices.”
The resulting social media traffic made the article No. 1 on the WSJ website on June 10.
“You now have permanent capital competing with a young couple trying to buy a house,” real estate consultant John Burns told the Wall Street Journal. “That’s going to make U.S. housing permanently more expensive.” His firm estimates “that in many of the nation’s top markets, roughly one in every five houses sold is bought by someone who never moves in.”
More Renters Mean Worse Neighborhoods This government-caused financial disaster waiting to happen won’t only have financial effects. It will have social effects. One is causing fewer people to be homeowners and effectively taking away wealth from those who do manage to buy a home but at a government-bubbled price.
Giant asset management firms driving up home prices forces more people to rent who would own if the prices weren’t so inflated. It also increases the ratio of renters to owners. In addition, government rules require those who own numerous properties to reserve a percentage for federally subsidized low-income renters, thereby forcibly injecting into communities people whose behavior generally is far worse than those of their neighbors, since nowadays poverty and antisocial behavior is correlated in the United States.
(Excerpt) Read more at thefederalist.com ...
1. Hedge fund buys them up
2. Hedge fund provides section 8 rentals
3. Government provides monthly payment to hedge funds while driving down property value
4. Later, government provides stipend for previous section 8 rentals on sale or allows hedge funds to finance “rent to own” section 8 where govt funds essentially finance rent to own
Just means you have to pay more for a house or pay more for rent ...but don’t worry if the housing bubble bursts you get to pay to bail out the companies that bought all the houses in the first place !
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The bankers are betting only on inflation, Carter style...I was there. They haven’t studied Argentina Brazil or any other SA inflationary times....rents/ prices skyrocketed, inflation then brought on a currency decline / collapse...double whammy....wages did not keep pace with currency decline nor inflation, jobs disappeared, food shortages, the peasants start rioting, socialism voted in, landlords could not kick out those in the rentals/ fewer and fewer could afford house prices....this scenario took three years in Argentina, but it was initiated by a currency collapse, not inflation...that came later...end result, much pain and suffering.....I will add that $800 mortgage was LEGALLY tied to inflation to protect the bankers,,,,,it becomes 1,000, then 1200, then 20,000....despite what your legal mortgage stated. Food for thought.
I will add Blackrock is betting on inflation only, thinking the Fed will prevent a currency collapse.....keep in mind the USD did the dreaded death cross months ago, is bouncing around at 89-90, down from 120 a few years ago....a currency collapse is very possible, how likely? No idea, but if that happens, the ( housing) collapse is a certainty....we are on that road if our debt increases as slow Joe wants to do..I am expecting a USD currency slow mo crash ( due to the Fed instating the Fedcoin, a cashless society) possibly hitting the 70’s sooner than later....2024? Stay tuned, pray, enjoy life, no matter what Demented Joe and his Godless bunch are attempting.
Non issue? Care to expound on your profound but very terse opinion? It most certainly is a huge issue when they are artificially distorting the housing market and keeping many people from being able to buy.
Corporate Communism.
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Chinese Communism ...
Yep! I get calls to sell as well. I tell them I want 18.4 million, they don’t call again.
It ain’t just Chinese.
Bill Gates, Warren Buffet, George Soros, etc. are all part of the game.
It ain’t just Chinese.
Bill Gates, Warren Buffet, George Soros, etc. are all part of the game.
Bilderberg group.
It’s private money making an investment.
Smart folks are leveraging very cheap interest to invest in a steadily inflating asset.
You should too.
Thanks - I won’t go that high but high enough they won’t want to bother with me. Great idea Keyopper.
LOL! I’m going to say that, next call I get.
They’re even calling hubby’s cell phone, now.
:-(
1. They’re far more likely to have children, which means there is more wear and maintenance with them.
2. Your best tenants are going to be families that should be homeowners themselves.
The only people I know who have done really well renting single-family homes are those who operate in a specialized market renting homes to major corporations for executive housing. These aren’t your typical suburban homes. They are high-end homes that companies use when they relocate their senior executives for long-term, but temporary, assignments.
One guy I know was renting one of those homes in an affluent New York City suburb for something like $12,000 per month to an international investment bank. They would relocate senior executives there from Europe and Asia for 18-24 months at a time, and the company-paid home was part of the incentive they would offer to get those executives to move their families like that.
Bilderberg group.
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PLA
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