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goofball
Navy Fan
Member since Mar 2015
11807 posts

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
Why is the big money moving so aggressively into real estate?

Are they predicting a downturn in other areas? Perhaps in the stock market or in commodity prices?


TideCPA
Alabama Fan
Member since Jan 2012
5714 posts

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
Yeah but they changed their logo for pride month so it's all good.

This post was edited on 6/9 at 9:13 pm


The Third Leg
Iowa Fan
Idiot Out Wandering Around
Member since May 2014
7284 posts

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
quote:

What’s weird is in the history of real estate and investment firms, why all of this purchasing of real estate now? Where was this 10-15 years ago? It’s not like real estate and investing in real estate is a new and pandemic related phenomenon.

A pseudo aristocratic gentlemen like yourself should know that money is dirt cheap now and legions of poors are being created—automation is going to displace vast man hours of labor, with much of the American underclass being cemented in lifetime of poverty.


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241
Taxing Authority
LSU Fan
Houston
Member since Feb 2010
45230 posts

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
quote:

why all of this purchasing of real estate now?
The Fed flooded the money supply.

quote:

Where was this 10-15 years ago?
Coming off the previous bubble. You can listen to this: Giant Pool of Money - NPR's This American Life or read the transcript.


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60
SouthernStyled
Samford Fan
Member since Apr 2021
507 posts

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
The fall is going to be epic. There will be empty houses everywhere. Funds will collapse because - shocker - empty homes don't pay dividends.


The Torch
LSU Fan
DFW The Dub
Member since Aug 2014
14719 posts
 Online 

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
quote:

What did it cost you to borrow money 12-15 years ago?


We got 3.5% 15 years ago which was a prime rate


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53
CunningLinguist
New Orleans Saints Fan
Dallas, TX
Member since Mar 2006
17437 posts

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
Yeah it is real. We have one rental property besides
Our primary residence. We quite frankly do not want to go 25% over asking price on more. It’d take a real hit to our liquid savings to go over like that on another property for a second rental.


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70
Meauxjeaux
Memphis Fan
98563 posts including my alters
Member since Jun 2005
30449 posts

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
quote:

Now the entire neighborhood is made up of SFR's. What are SFR's??

Single Family Rentals.


When Uncle Sam is the renter, the payment is always on time.


Taxing Authority
LSU Fan
Houston
Member since Feb 2010
45230 posts

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
quote:

There are plenty of better asset classes to build wealth if you're lower or middle class. Not to mention that group is skewed young and assumed to never move in and out of those income and savings levels they are currently in.
The Venn diagram of "you're home is an investement!" and "everyone should go to college!" is roughly a circle.


USMEagles
Southern Miss Fan
Member since Jan 2018
6823 posts

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
quote:

PE has been buying residential properties for rental for quite a while.


I was surprised by the number of corporation-owned rental homes in my neighborhood when I researched it.

quote:

There are plenty of better asset classes to build wealth if you're lower or middle class.


When I was a renter, I put a lot of my savings into REITs and junk bonds issued by homebuilders during the great recession. I was hedging against the fact that I didn't directly own real estate and it made me some money.

I'm not sure the new permanent renter class is sophisticated enough to do that kind of thing, though.


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stout
Arizona Fan
Smoking Crack with Hunter Biden
Member since Sep 2006
147641 posts
 Online 

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
quote:

Also, how bad of investor do you have to be if you buy up a DR Horton subdivision.....



The company with billions of dollars in buying power, that is buying 100,000+ plus homes this year is the bad investor?

You miss the point of the article. DR Horton is typically a starter home/middle-class developer. They are trying to price those people out of the market and force them to turn into lifelong renters.


Sao
SMU Fan
East Texas Piney Woods
Member since Jun 2009
50586 posts

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
quote:

Collapse is coming in our lifetime


Absolutely. As an RIP, the likelihood pride of home ownership is prevalent will (or should) diminish the value of the asset. But on paper, both at the financial institution or Appraisal District level, it won't. 2008 all over again.


stout
Arizona Fan
Smoking Crack with Hunter Biden
Member since Sep 2006
147641 posts
 Online 

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
quote:

Why is the big money moving so aggressively into real estate?

Are they predicting a downturn in other areas? Perhaps in the stock market or in commodity prices?




Because even bonds are junk right now and this is a better hedge?


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10
The Torch
LSU Fan
DFW The Dub
Member since Aug 2014
14719 posts
 Online 

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
This is going to cause a lot of hardship in Texas.

We don't have a state income tax so they make up for it on property taxes.

Most of us have an escrow account we pay each month which
includes Mortgage + Insurance + Taxes. Our home has doubled in value in 15 years so has the insurance and Taxes part of our monthly payment.



This post was edited on 6/9 at 9:34 pm


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174
Nigel Farage
LSU Fan
Atl
Member since Dec 2019
1004 posts

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
quote:

posted a thread about the great reset early on during the scamdemic and was laughed at


You will own nothing
You will eat ze bugs
You will live in ze pod
You will be happy


dewster
LSU Fan
Chicago
Member since Aug 2006
20060 posts

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
quote:

They are trying to price those people out of the market and force them to turn into lifelong renters.


More than likely they think the costs of construction will prevent these buyers from purchasing a new home in the future, so they want to cash in on what they think will be increased rental demand.

Not necessarily nefarious on its own, but it has the same impact you pointed out. Entry level buyers are being squeezed.


USMEagles
Southern Miss Fan
Member since Jan 2018
6823 posts

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
quote:

Absolutely. As an RIP, the likelihood pride of home ownership is prevalent will (or should) diminish the value of the asset. But on paper, both at the financial institution or Appraisal District level, it won't. 2008 all over again.


You OK, buddy?

This isn't 2008. The money supply is easily triple what it was then.

TradingEconomics.com

St. Louis Fed

This isn't just price inflation. It's a shift in who owns what and how they get it.

This post was edited on 6/9 at 9:33 pm


TomRollTideRitter
Alabama Fan
Member since Aug 2016
10253 posts

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
quote:

When I was a renter, I put a lot of my savings into REITs and junk bonds issued by homebuilders during the great recession. I was hedging against the fact that I didn't directly own real estate and it made me some money.

I'm not sure the new permanent renter class is sophisticated enough to do that kind of thing, though.


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.

That’s a pretty tall ask for most people, especially young people.


El Segundo Guy
USA Fan
SE OK
Member since Aug 2014
3557 posts

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
Reading the OT, all of you work from home now anyway....so fricking leave!


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37
BeepNode
The City of Central
Member since Feb 2014
4904 posts

re: Blackrock is buying every single-family house they can & paying 20-50% above asking price
An entire neighborhood of DR Horton rental homes.

I can see the cars overflowing out of the tiny little driveways already.


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