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re: What should be done about investors buying up homes?
Posted on 5/20/24 at 10:36 am to MadQfrog
Posted on 5/20/24 at 10:36 am to MadQfrog
quote:
What should be done about investors buying up homes?
1st, identify whether or not it's really a problem - a process that helps identify the problem.
Do we ask this same question when big companies buy or build apartments they intend to rent or sell to apartment management companies?
If there's a market of consumers wanting to leave their small apartment units to rent larger homes, what's wrong with letting businesses meet this demand?
Maybe it's just a risk transfer. By buying more homes, they are embracing the rising cost of homeowners insurance. This makes it easier for apartment renters to become home renters. If they embed the insurance cost into their rental price, consumers may find it more cost effective to just buy their own homes instead of renting.
Perhaps these companies (subject matter experts on real estate values and growth?) are buying homes for the perceived investment value, which could be a signal to potential home buyers that they should not shy away from doing it too.
Is the risk transfer wrong?
What type of homes are these companies buying? Is it just certain markets? Or are they spread out throughout the US?
If corporations raise the selling price of their neighborhood portfolio, that also raises the comps for individual sellers.
One risk in the status quo may be to consider whether these home buying companies are also selling homeowners insurance. If they can heavily influence the pricing of both, that could become a problem.
1
Posted on 5/20/24 at 10:37 am to SlowFlowPro
quote:
The market has to eventually flip.
Have you seen the way we have artificially kept it afloat? The market should have flipped pre-covid as all of the indicators of a traditional flip were there.
There is no promise they won't try to keep it propped up for decades. They did it once already.
Posted on 5/20/24 at 10:38 am to MadQfrog
Step 1: When you get a cold call asking you to sell your home, tell them to frick off and that if they ever call you again, you will press charges.
Posted on 5/20/24 at 10:38 am to stout
How do they do this?
Posted on 5/20/24 at 10:39 am to Willie Stroker
quote:
If corporations raise the selling price of their neighborhood portfolio, that also raises the comps for individual sellers.
Generally, having a ton of rentals a street or two over lowers values as the homes aren't maintained as well inside and out.
Posted on 5/20/24 at 10:44 am to 1BIGTigerFan
quote:
How do they do this?
Lower rates is the easiest answer
But they have also introduced mortgage programs that reek of the old subprime era. Those programs artificially inflate prices.
Also, the amount of Government-backed programs to keep someone out of foreclosure is absurd. Look into what they recently changed for VA loans. It is almost impossible to lose your home if you have a VA loan now. This disrupts the natural cycle of the market since foreclosures have been a natural function of the RE market for decades. Now, they are almost non-existent.
This post was edited on 5/20/24 at 10:46 am
Posted on 5/20/24 at 10:45 am to MadQfrog
quote:
hate the idea government telling businesses how to operate.
Mostly I feel this but often humans will be greedy and take advantage of the law. I can't blame them for that but people have to have a place to live affordably. What do you do?
Posted on 5/20/24 at 10:47 am to MadQfrog
Set a sales tax on second homes equal to the percentage of homes in the area not primary residences. If 25% of the homes are “rental properties” then the tax is 25% of the sale/construction costs. If it’s a third home, double it. Fourth home, triple it. No max. Apply this to individuals and investment groups. All funds generated by this tax go directly towards lowering interest rates on primary residences (of which you are ineligible if you have more than one). Exclude camps and hunting grounds as long as their value is less than that of your home.
Add 5% per year property tax to all foreign owned properties and this fund goes directly to lowering interest rates on first time home buyers.
Ban any foreign ownership of farm/timber land. Period.
Add 5% per year property tax to all foreign owned properties and this fund goes directly to lowering interest rates on first time home buyers.
Ban any foreign ownership of farm/timber land. Period.
Posted on 5/20/24 at 10:47 am to LSUnation78
quote:Enforcement
Two things that should only be owned by an entity who can occupy/work them.
Posted on 5/20/24 at 10:47 am to theballguy
quote:
Mostly I feel this but often humans will be greedy and take advantage of the law
Yes, but that greed accelerates market forces, too.
Posted on 5/20/24 at 10:48 am to theballguy
Require all such rental homes to offer rent to own options and heavily tax them.
Posted on 5/20/24 at 10:48 am to LSUnation78
quote:
Homes and farm land.
Two things that should only be owned by an entity who can occupy/work them.
Complete commie bullshite. Never in the history of the world has this ever been the case, but you think it's axiomatic.
BTW, 19,000 homes out of a total of 2.4 million is 0.8%. Why is it a problem that less than 1 in 100 homes is owned by these companies?
This post was edited on 5/20/24 at 10:51 am
Posted on 5/20/24 at 10:49 am to hawkeye007
quote:
to be able to finance a house with any type of loan you have to have a resident alien card. no way around that. if illegals are buying homes its cash.
I never said they were buying them.
Posted on 5/20/24 at 10:51 am to Penrod
quote:
Complete commie bullshite.
Yes it is. As I said, a lot of this could easily be zoned out both by changing old zoning laws and issuing new ones before approving new developments. Leave it up to local municipalities to handle. Much easier to vote those people out if they fail to serve the public.
Posted on 5/20/24 at 10:56 am to SlowFlowPro
quote:
Don't bail them out when it goes belly up as the market shifts
I agree so hard right now. I'm convinced the only bailouts should go to farmers. Corporations should have to sell at a loss in hard times just like normal people. Yeah portfolios take a hit but things get cheaper and it may cause them to be a little more conservative in their investments.
Posted on 5/20/24 at 10:59 am to Penrod
quote:
Two things that should only be owned by an entity who can occupy/work them.
Complete commie bullshite.
Nope.
Commie bullshite would be collective ownership.
Private people owning residential homes is the opposite of commie bullshite.
Posted on 5/20/24 at 11:00 am to stout
quote:
Have you seen the way we have artificially kept it afloat?
This is the problem.
If we let investors fail, the market could take care of it. The government bailing out investors clearly is anti market.
Posted on 5/20/24 at 11:01 am to MadQfrog
Something should be done as well about investors buying up huge swaths of land so contractors like DSLD and DR Horton can build shoddy homes.
Posted on 5/20/24 at 11:02 am to stout
quote:
This is a local issue.
Local by municipality or by state?
Municipality.
Restrictions on ownership are not unusual at all. Wisconsin Dells is a big tourist area. A couple townships around the Dells have bans on short term rentals (No Airbnb bullshite). This was even before Airbnb got big.
Numerous townships also have a 40 acre minimum for new construction.
This post was edited on 5/20/24 at 11:03 am
Posted on 5/20/24 at 11:06 am to SlowFlowPro
quote:
Don't bail them out when it goes belly up as the market shifts.
A quick peak into the portfolio of congressman and senators on both sides will tell you that we won't have any say on what is "too big too fail" and what's not.
You of all people should know better. The only change will be the Blackrocks and their shell companies will bleed the government with our tax dollars after regular citizen's funds dry up.
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