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Started By
Message
re: What should be done about investors buying up homes?
Posted on 5/20/24 at 12:30 pm to Big Scrub TX
Posted on 5/20/24 at 12:30 pm to Big Scrub TX
quote:
New construction is need to create supply
There has been plenty of new construction.
Its being sold to corporations.
3
Posted on 5/20/24 at 12:33 pm to RogerTheShrubber
quote:
This new wealth economy has replaced the worker "paycheck" economy and left most of Americans out of the loop. Its almost impossible to get ahead if you dont inherit shite today, due to Govt policies.
Populist.
Posted on 5/20/24 at 12:55 pm to MadQfrog
Haven't read five pages, but to respond to OP, it will have to come down to local zoning boards who have immense protected powers on local matters that state or national laws would be legal nightmares.
Examples-
Athens zoned their Five Points neighborhood with a rule that no more than two unrelated people can occupy a single family residence. Of course people sued, but the county won. This was in response to the growing student population creeping into the nice neighborhoods and the old school blue hairs didn't want them.
The city of Mt Pleasant SC commission made a rule that growth would be capped at 5% a year for new building permits when the area started to explode. It protected that jurisdiction during the 2008 housing crisis. None of those people lost a dime in equity because they hadn't overbuilt.
That's just two example off the top of my head.
Local zoning boards could fix this locally. How it gets worded to pass legal tests is above my pay grade, but it could be done.
Edit to add- it could also be done with property taxes. The homestead exemption for an owner occupied property would be price X, but non-owner occupied could be 2x for your first investment property, and 3x for the next, and 4x for the next, eventually the law of diminishing returns would stabilize the amount of houses becoming investment properties owned by a single entity. But it wouldn't kill off the small time rental property investors that own a few properties here and there.
Examples-
Athens zoned their Five Points neighborhood with a rule that no more than two unrelated people can occupy a single family residence. Of course people sued, but the county won. This was in response to the growing student population creeping into the nice neighborhoods and the old school blue hairs didn't want them.
The city of Mt Pleasant SC commission made a rule that growth would be capped at 5% a year for new building permits when the area started to explode. It protected that jurisdiction during the 2008 housing crisis. None of those people lost a dime in equity because they hadn't overbuilt.
That's just two example off the top of my head.
Local zoning boards could fix this locally. How it gets worded to pass legal tests is above my pay grade, but it could be done.
Edit to add- it could also be done with property taxes. The homestead exemption for an owner occupied property would be price X, but non-owner occupied could be 2x for your first investment property, and 3x for the next, and 4x for the next, eventually the law of diminishing returns would stabilize the amount of houses becoming investment properties owned by a single entity. But it wouldn't kill off the small time rental property investors that own a few properties here and there.
This post was edited on 5/20/24 at 12:59 pm
Posted on 5/20/24 at 12:55 pm to RogerTheShrubber
You sir are misinformed.
Posted on 5/20/24 at 1:02 pm to Dodd
quote:
In the third quarter of 2021, investors made up 18% of home sales, up from 11% from last year at this time, according to analysis by Redfin
It appears youre wrong.
This investor driven surge has fricked the homeowner and driven prices sky high, fueled by Covid cash.
quote:
Single-family homes (SFRs) are the gold standard these days, making up 74.4% of all the investor purchases, the highest percentage on record.
Posted on 5/20/24 at 1:12 pm to SlowFlowPro
quote:
Back to my initial comment:
In a world in which that would actually happen, I might agree.
We do not live in that world, however.
I still might agree, though.
Here's the problem with additional regulations: there will be people who use them to their advantage. You (royal "you") may not be able to foresee who those people are or how they will exploit the regs, but I will guarantee that it will happen.
And the more the exploitation takes place around government regulations rather than in a (relatively more) free market, the less access the average citizen will have to the same strategies and the less ability they will have to work around them.
Posted on 5/20/24 at 1:13 pm to RogerTheShrubber
Oh, you want Redfin data….
You guys keep blaming the investor bogey man yet it’s nearly always a supply demand issue. As an example, the poster above you cited two examples to address an investor ownership problem by imposing restrictions on housing supply. In what world does restricting create affordability? None.
Ease regulation to allow the market forces to build baby build. Only then, when supply stabilizes demand, will you see normalized affordability.
You guys keep blaming the investor bogey man yet it’s nearly always a supply demand issue. As an example, the poster above you cited two examples to address an investor ownership problem by imposing restrictions on housing supply. In what world does restricting create affordability? None.
Ease regulation to allow the market forces to build baby build. Only then, when supply stabilizes demand, will you see normalized affordability.
Posted on 5/20/24 at 1:15 pm to Dodd
quote:
You guys keep blaming the investor bogey man
Thats exactly whats causing residential real estate to explode.
Should I just make up someone to blame?
Trump for the free Donny Dollars?
Joe for continuing "free stuff?"
Governments for protecting real estate prices at the expense of everything else?
Can we blame all of them and still be right? I think so.
This post was edited on 5/20/24 at 1:16 pm
Posted on 5/20/24 at 1:16 pm to the808bass
20yrs as a mortgage loan officer, I think i might know a little about this subject
Posted on 5/20/24 at 1:17 pm to RogerTheShrubber
It’s simply not true
Posted on 5/20/24 at 1:17 pm to RogerTheShrubber
quote:How does this relate to this thread? There's CONSTANT bitching on here about interest rates being higher. What bail out is keeping housing markets up presently, now that rates have more than doubled?
Like being too big to fail?
Like bailing out investors to keep housing markets up?
That sounds more like socialism to me.
Lack of supply is keeping markets up. And nobody is serious about increasing it.
Posted on 5/20/24 at 1:19 pm to the808bass
quote:He's a moron for suggesting that highly-regulated lenders are NOT giving loans to unqualified borrowers? If this were 2006, maybe you'd have a point. But borrowing is hard as shite, even for the most qualified borrowers.
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.
Lol. Moron.
Posted on 5/20/24 at 1:20 pm to fwtex
quote:I'd be willing to bet that institutionally owned homes are on balance MORE well-maintained.
. Code changes. Change the code that requires either investors that do not live in the community to have to maintain the property to a very high standard such as no dead grass, manicured gardens, a professional landscaping service, annual property inspections with required repairs if needed. Just make it so the property can not be a cash cow that they let go into disrepair and take all the profit.
Posted on 5/20/24 at 1:21 pm to Big Scrub TX
quote:
There's CONSTANT bitching on here about interest rates being higher.
They've been artificially low forever.
I think youre getting your boards confused.
Posted on 5/20/24 at 1:21 pm to Dodd
quote:
You guys keep blaming the investor bogey man
I've suspected there was more a fear porn component to this narrative than anything.
Thanks for the info and data.
Posted on 5/20/24 at 1:27 pm to MadQfrog
Believe it or not, we’ve received numerous cold calls trying to induce us to sell our Uptown home to investor groups. We’re not interested at this time.
It’s bad for the market long term.for investors to gobble up housing stock.
It’s bad for the market long term.for investors to gobble up housing stock.
Posted on 5/20/24 at 1:28 pm to VOR
quote:
Believe it or not, we’ve received numerous cold calls trying to induce us to sell our Uptown home to investor groups. We’re not interested at this time.
Are you aware of ANY "Uptown homes" that have sold to "investor groups"?
Posted on 5/20/24 at 1:33 pm to Y.A. Tittle
quote:
Are you aware of ANY "Uptown homes" that have sold to "investor groups"?
I was shocked at how many local upscale homes are "industrial homes"
Still most are entry level, section 8 stuff.
quote:
Investors Bought 26% of the Country’s Most Affordable Homes in the Fourth Quarter
It the people at the bottom of the scale getting squeezed by Govt cash and industrial home ownership.
Posted on 5/20/24 at 1:33 pm to Y.A. Tittle
And “Investor Groups” could be your neighbors. Do you know how hard it would be for institutional investors to go around buying one off homes?
Posted on 5/20/24 at 1:34 pm to RogerTheShrubber
quote:
I was shocked at how many local upscale homes are "industrial homes"
Still most are entry level, section 8 stuff.
You talking where you live? What are "industrial homes"?
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