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re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
Posted on 6/9/21 at 10:24 pm to Paul Allen
Posted on 6/9/21 at 10:24 pm to Paul Allen
quote:
What’s your definition of the middle class?
My litmus test has always been knowing what the frick a litmus test is.
0
Posted on 6/9/21 at 10:24 pm to stout
quote:
black rock, a federal reserve funded financial institution
I think this is important but haven't seen it discussed.
Posted on 6/9/21 at 10:25 pm to BuckyCheese
quote:
a federal reserve funded financial institution
That's the entire planet, though.
Posted on 6/9/21 at 10:28 pm to SouthernStyled
quote:
The fall is going to be epic.
It's funny that a report of presumably smart money pouring into real estate, and everyone is predicting a housing collapse.
The dollar is being inflated away, and has been for a while. Housing prices in reasonable markets, at least in terms of USD aren't going to crash. This isn't 2008.
Posted on 6/9/21 at 10:40 pm to USMEagles
quote:
don't know if it will lead to another 2008, though. It takes a lot of imagination right now to think about a future where it's too easy to buy real estate.
But it takes no imagination to recall when RE became so easy to buy. In 2001, I locked at a 6.125% 30 year. Just 3 years later, it was in the 3's. Refi was rampant, junk loans OOC. Then, 2008. What are we disconnected about? Maybe I'm not understanding your points well enough.
Posted on 6/9/21 at 10:40 pm to TomRollTideRitter
quote:
I find it hard to believe you made as much monthly to make up for your rental payment unless you were just renting by choice instead of out of necessity.
If you just have a $1K monthly rental payment, you have to make 12% on $100K through other investments just to make up for that loss.
This isn't an apples to apples comparison. First, in that rent payment is taxes, insurance, interest on mortgage and maintenance. Don't have to pay a Realtor 5-6% either.
Plus, as a renter you have an Option to move. Options usually have a value as well that is implicit or hidden to most people who view from the outside.
Posted on 6/9/21 at 10:46 pm to Sao
quote:
But it takes no imagination to recall when RE became so easy to buy. In 2001, I locked at a 6.125% 30 year. Just 3 years later, it was in the 3's. Refi was rampant, junk loans OOC. Then, 2008. What are we disconnected about? Maybe I'm not understanding your points well enough.
It's much harder to get a mortgage now, for one thing. Beyond that, you can't even get sellers to look at an FHA offer now, in many places. Even a conventional mortgage will face stiff competition from cash offers.
Yeah, interest rates are lower, but that's not the barrier-to-entry and it never has been. My folks bought houses at stupid-looking interest rates in the 1980s. They didn't care. The hard part was finding the down payment, etc.
Posted on 6/9/21 at 10:49 pm to stout
European sovereign funds are the investors, been going on for years...I know guys that invest and sell into 4-5mm equity projects worth 500mm..then selling block to Blackrock and Blackstone
Posted on 6/9/21 at 11:00 pm to USMEagles
quote:
Even a conventional mortgage will face stiff competition from cash offers.
How does a conventional mortgage even win versus a cash offer? Wouldn’t a cash offer always win?
Posted on 6/9/21 at 11:02 pm to Seeing Grey
You’re clearly not very familiar with the market and Blackrock
Posted on 6/9/21 at 11:03 pm to Sao
quote:
But it takes no imagination to recall when RE became so easy to buy. In 2001, I locked at a 6.125% 30 year. Just 3 years later, it was in the 3's. Refi was rampant, junk loans OOC. Then, 2008. What are we disconnected about? Maybe I'm not understanding your points well enough.
24% of the new home buyers in the Houston market are these institutional investors. There is a similar proportion of institutional buyers in other hot markets like Miami, Vegas, Dallas, and Austin. They are paying cash and above market rates to scoop up clusters of homes. It's getting to the point where FHA buyers are overlooked in hot markets right now because there are often cash buyers like Blackrock - and not just for new construction. That's kind of alarming.
I honestly don't understand where the hell all of these renters are coming from unless there's a mass migration out of the urban areas in this country. My brand new apartment building in Chicago's west loop was only 60% occupied when I moved out BEFORE the pandemic. There were at least a half dozen others under construction nearby just like it. I'm not certain that this trend is driving demand for all of these suburban rentals, but I've noticed it in my area and I've read more than a handful of articles on the subject (although that was centered around NYC...not Houston).
I don't think the next big RE crash will be driven by sub-prime borrowers defaulting on their loans en masse like it was in 2008. It's more likely going to be institutional funds taking corrective action on a huge amount of over valued property that they can't easily sell or rent. For now though, they are filling those bedrooms pretty easily.
This post was edited on 6/9/21 at 11:10 pm
Posted on 6/9/21 at 11:07 pm to dewster
quote:
I don't think the next big RE crash will be driven by sub-prime borrowers defaulting on their loans en masse. It's more likely going to be institutional funds sitting on over valued property that they can't easily sell or rent.
We sold some high priced California real estate within the past year because it wasn't worth the bullshite.
I'm hoping to capitalize if there is another crash.
Posted on 6/9/21 at 11:12 pm to BigBobbyStorey
quote:
as Marx said, capital is a vampire.
Can’t you invest in Blackrock? Doesn’t seem like they hate capitalism. They are utilizing it to make money.
US has been a renter nation for at least the last decade. They are renting larger homes in good school districts that they cannot otherwise afford to buy. This is not a new thing that just started happening in 2021.
Posted on 6/9/21 at 11:15 pm to stout
Posted on 6/9/21 at 11:18 pm to Nigel Farage
quote:
These frickers are pure evil, you think the cries for socialism are bad now? They will only get louder and have greater credence lent to them if these big companies are not reigned in.
capitalism defines the process.
there is credence to the complaints.
the bottom line profit this quarter is a stupid way to run the world.
Posted on 6/9/21 at 11:19 pm to Seeing Grey
quote:The only thing better than "It can't happen here" is "It can't happen again".
Housing prices in reasonable markets, at least in terms of USD aren't going to crash. This isn't 2008.
Posted on 6/9/21 at 11:20 pm to CelticDog
quote:
capitalism defines the process.
there is credence to the complaints.
the bottom line profit this quarter is a stupid way to run the world.
Agreed which is why I support heavy regulation and the breakup of these big companies. The American Dream is dying before our eyes for many reasons but at its heart is the unrestricted predatory capitalism that has taken over so many industries.
Posted on 6/9/21 at 11:22 pm to LSUAngelHere1
quote:
You’re clearly not very familiar with the market and Blackrock
You're clearly not very familiar with the current rate of inflation and what that means.
Posted on 6/9/21 at 11:25 pm to stout
Who do you think I going to buy up all the real estate when the foreclosure deferments end?
This is part of the plan.
This is part of the plan.
Posted on 6/9/21 at 11:26 pm to thejudge
quote:
Tim Pool video on the topic. I actually sent this to my wife who uses Facebook. Told her this is the kind of shite that needs to be shared.
Not familiar with that guy. He's making a few points, but he goes off the rails on others.
My advice to young homebuyers that want to avoid renting: Most of you are able to work from home at least half the time. Embrace that and respond to what this real estate market is telling you: Move to a smaller city or outlying area where these massive real estate investors aren't bothering with and home prices are more reasonable.
If you already own your home in one of these metros. Hang on to it and ride the wave up (for now). Be prepared to sell and move to an area with lower costs of living eventually.
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