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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 9:10 pm to stout
Posted on 6/9/21 at 9:10 pm to stout
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?
Are they predicting a downturn in other areas? Perhaps in the stock market or in commodity prices?
1
Posted on 6/9/21 at 9:12 pm to stout
Yeah but they changed their logo for pride month so it's all good.
This post was edited on 6/9/21 at 9:13 pm
Posted on 6/9/21 at 9:13 pm to Paul Allen
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.
Posted on 6/9/21 at 9:13 pm to Paul Allen
quote:The Fed flooded the money supply.
why all of this purchasing of real estate now?
quote:Coming off the previous bubble. You can listen to this: Giant Pool of Money - NPR's This American Life or read the transcript.
Where was this 10-15 years ago?
Posted on 6/9/21 at 9:14 pm to stout
The fall is going to be epic. There will be empty houses everywhere. Funds will collapse because - shocker - empty homes don't pay dividends.
Posted on 6/9/21 at 9:14 pm to nugget
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
Posted on 6/9/21 at 9:15 pm to stout
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.
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.
Posted on 6/9/21 at 9:15 pm to stout
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.
Posted on 6/9/21 at 9:16 pm to wutangfinancial
quote:The Venn diagram of "you're home is an investement!" and "everyone should go to college!" is roughly a circle.
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.
Posted on 6/9/21 at 9:18 pm to wutangfinancial
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.
Posted on 6/9/21 at 9:20 pm to tigeraddict
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.
Posted on 6/9/21 at 9:21 pm to Prosecuted Collins
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.
Posted on 6/9/21 at 9:22 pm to goofball
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?
Posted on 6/9/21 at 9:23 pm to stout
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.
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 6/9/21 at 9:34 pm
Posted on 6/9/21 at 9:29 pm to LoneStar23
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
Posted on 6/9/21 at 9:29 pm to stout
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.
Posted on 6/9/21 at 9:31 pm to Sao
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 6/9/21 at 9:33 pm
Posted on 6/9/21 at 9:32 pm to USMEagles
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.
Posted on 6/9/21 at 9:32 pm to dewster
Reading the OT, all of you work from home now anyway....so fricking leave!
Posted on 6/9/21 at 9:33 pm to stout
An entire neighborhood of DR Horton rental homes.
I can see the cars overflowing out of the tiny little driveways already.
I can see the cars overflowing out of the tiny little driveways already.
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