https://www.reviewjournal.com/busin...-firm-buys-264-valley-homes-in-a-day-2976037/ Miami-based investment firm Starwood Capital Group sold 264 homes in Clark County for $98 million to Dallas-based Invitation Homes (NYSE: INVH), according to Clark County property records. A Miami based company selling Las Vegas homes to a Dallas company, and people wonder who houses cost so much. It's because people borrowing at prime Federal rates essentially interest free are driving individuals who pay retail prices for mortgage money out of the markets all over the country.
There is a bill in congress that would ban the practice and require they liquidate their inventory over 10 years or face huge taxes and penalties. We will see where it goes. https://www.vice.com/en/article/jg5...funds-private-equity-from-buying-family-homes That said, I don't really think that is why the real estate market is out of whack necessarily. It is the knock-on effect of the stock market being out of whack. A lot of people other than these big hedge funds have seen real estate as a more desirable investment than stocks for years. I know a man who buys houses and then either rents them or owner finances them for people because it gives him a more level return on investment than his 401K was. I know another guy who own who knows how many hundred houses but his is a house of cards because he is one of those "Keep no equity" investors who is constantly refinancing to get cash to buy even more property---commercial and residential. If real estate takes a downturn, he could end up upside down pretty quick.
We have been warned that this was going to happen, well if you were watching the right sources. The young in this nation will not be able to afford their own piece of the pie like we have enjoyed, home ownership at the top of that list.. Investors, conglomerates have "somewhat lucratively" been buying up as many homes around this nation as they can snag.. Rent will be the next big trillion dollar markets, look for ESG, the truth is there..
It was easily predictable since the 1960's, when the big banks started rolling back all the anti-trust laws passed by FDR and the Wright Patmans against both banks and chain stores, then the savings and loans. The Technocrats on both the left and the right hate small and medium sized business people and workers, and love big corporations and monopolies. In 1975 the Democrats' Watergate Babies tossed out the remaining holdouts from Congress and in early 1980's created the 'super delegate rule' to shut down any revolt by the peasants in their primaries. The GOP was always on board with monopolies and rigged markets, so that didn't take much there. Reagan let them run wild, with the exception of AT&T, an donly because they were in the way of a lot of tech insiders getting rich off of govt contracts handed out to start ups that were cheap to get into early. They've been promoting serial real estate debt bubbles as a substitute for manufacturing and a real tax base and prosperity; it fails regularly, almost like clockwork, then the govt bails out the crooks and they do it all over again.
Great post, nice to see another/others with a keen eye of the past, present and future.. Although, I fear there is little hope of avoiding what's coming, the Washington elites have their claws buried to deep now.. It will have to go full circle now and the young of this nation, once tire of mediocre and living condition below their parents will have to make thier stand against corruption and tyranny..
I don’t think any corporation should be allowed to own residential single family properties. Only individuals. Includes people who set up LLCs to own multiple homes. It’s all scumbaggery and it ****s up the market.
