This should be a bipartisan issue. For months now, Wall Street has been buying homes and driving up prices. How long are conservatives going to "libertarian" the American dream away? How long are progressives going to buy into Marxist propaganda while the country devolves into the rich and the poor? People need to own homes. It's what sustains the middle class. This is such an easy fix: Businesses can't buy homes from individuals until they've been on the market for 60 days.
Saagar Enjeti: EXPOSING Wall Street Destruction Of America's Housing Market - YouTube
This absolutely is a problem that must be addressed.
(01-25-2022, 07:29 AM)Lucky2Last Wrote: [ -> ]This should be a bipartisan issue. For months now, Wall Street has been buying homes and driving up prices. How long are conservatives going to "libertarian" the American dream away? How long are progressives going to buy into Marxist propaganda while the country devolves into the rich and the poor? People need to own homes. It's what sustains the middle class. This is such an easy fix: Businesses can't buy homes from individuals until they've been on the market for 60 days.
Saagar Enjeti: EXPOSING Wall Street Destruction Of America's Housing Market - YouTube
That doesn't sound enforceable to me. I like where your heart is at but the solution will be far from easy.
The other problem we have is the poorer and younger people who don't yet own homes and would like to aren't as numerous and are less likely to vote than the people who own homes. People who own homes won't support anything designed to keep a lid on home prices. Policies that are sold as punishing landlords and keeping a lid on rent have a better chance of success at the ballot box.
Why is that unenforceable? Also, many people with homes are being affected by this.
(01-25-2022, 12:25 PM)Lucky2Last Wrote: [ -> ]Why is that unenforceable? Also, many people with homes are being affected by this.
The government does not currently keep a list of homes "on the market." Who would certify that a house was on the market for 60 days with no buyers?
I agree this is a massive problem. You're not going to get a laissez faire solution to it. You're going to need big government doing big government control things to fix the problem. Is that something you're willing to vote for? If so then you're looking for someone like Bernie Sanders who isn't afraid to go after big moneyed interests. You won't find a solution in the current republican party, which are best described as the cheering section for hands off the market.
When the market value of homes exceeds the cost of building homes, more homes get built. That's why this is not a problem.
Economics 101
(01-25-2022, 01:52 PM)The Real Marty Wrote: [ -> ]When the market value of homes exceeds the cost of building homes, more homes get built. That's why this is not a problem.
Economics 101
More homes only get built if zoning allows it. And zoning to higher density won't make sense unless there is a plan to improve the roads and mass transit options.
Plus, this isn't so much a question of homelessness, as much as a question of renting vs owning. Many posit that a high % of renters is unhealthy, although this is hard to quantify.
(01-25-2022, 01:52 PM)The Real Marty Wrote: [ -> ]When the market value of homes exceeds the cost of building homes, more homes get built. That's why this is not a problem.
Economics 101
This sort of simplistic analysis leads to a lot of problems.
If you like situations like what happened in 2008 in the Bush crash then don't do anything about what's going on right now.
So many things in this World are screwed up and this is one of them.
That said, I have to say that we live in a capitalistic nation and this is part of it. People complain about socialism, yet complain when people make money. Indirectly, this is comparable to Atlantic City in the 1980s when they built massive hotels and casinos, which essentially forced renters out of their homes. Worse yet, they declared eminent domain and forced existing homeowners out. I repeat, we live in a capitalistic nation so a lot of things just aren't going to be fair.
Americans are so all or nothing. It's frustrating to watch people rationalize abuse caused by the corporate government merger. You can't build houses whenever or wherever you want. The government regulates it. If corporations can profit from it, you know where you'll find their lobbyists. The government should work for us. Period. You guys need to start getting loud about this type of trash.
Also, it's not hard to track what I suggested.
(01-25-2022, 03:38 PM)Lucky2Last Wrote: [ -> ]Americans are so all or nothing. It's frustrating to watch people rationalize abuse caused by the corporate government merger. You can't build houses whenever or wherever you want. The government regulates it. If corporations can profit from it, you know where you'll find their lobbyists. The government should work for us. Period. You guys need to start getting loud about this type of trash.
Also, it's not hard to track what I suggested.
I can buy you an "AOC-Warren 2024" bumper sticker if you want. They are attempting to regulate Corporations for the benefit of the people which seems to be right up your alley.
Sarcasm aside, to a certain extent, I do agree with you.
Zillow and Blackrock were doing this as well. I think it's pretty evident what the overall goal is here. This is a war on the middle class. The American dream. Since I have been a kid I have seen this become increasingly more frustrating and damn near unrealistically unattainable for a specific age group in this country.
I mean, it's attainable. To an extent. The table was always rigged. It's just now more blatantly obvious and more widely accepted as factual instead of some kind of boogeyman. Governments and Corporations work actively to make your way of life that much more difficult. They don't mind you slaving away behind a computer screen all day though while your pensions and bonuses disappear while the cost of living and work load goes up.
Here's the real pisser of it. They're looking to avoid what happened back in 2008 during the housing market crash. I actually took advantage of that in 2012. Was just luck and timing due to my age and circumstance. I was able to buy a home during a buyer's market. My house was purchased for $98,000 back in 2012. It's now listed on Zillow at $310,000+. I'll never see that opportunity again. I don't think anybody will.
In the event this market crashes again, which it will eventually. The opportunities will be extremely limited or it'll cost you a lot more up front and in the long run to buy a home. I get offers all the time for my home. However, given the unstable nature of our economy, our world, and with this virus? I am not risking it. I will happily sit put with my family here given how cheap the monthly payment is to get by.
I said this a while ago. Blackrock is offering cash, over market value (20% or more sometimes) and pricing people out of buying the home. It's not just resells, it's new construction where they are buying most of the subdivision.
Why are they dumping cash into property? Who knows but they aren't holding them as investments as you know the market is going to crash. They aren't flipping either. They are buying to rent. Soon you won't be able to buy an existing home or build unless you already own the land in some places.
There has to be some plan or strategy for why they think it's a good move. Maybe market crash and hyper inflation so they dump cash for property. Maybe some government plan to buy land to kill subdivisions and force city living. Maybe some type of government guarantee rent payments.
Inflation reason makes sense but they are putting a ton of cash into it. I'm sure there are crazier thoughts on what the reasons are.
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(01-25-2022, 09:58 PM)p_rushing Wrote: [ -> ]I said this a while ago. Blackrock is offering cash, over market value (20% or more sometimes) and pricing people out of buying the home. It's not just resells, it's new construction where they are buying most of the subdivision.
Why are they dumping cash into property? Who knows but they aren't holding them as investments as you know the market is going to crash. They aren't flipping either. They are buying to rent. Soon you won't be able to buy an existing home or build unless you already own the land in some places.
There has to be some plan or strategy for why they think it's a good move. Maybe market crash and hyper inflation so they dump cash for property. Maybe some government plan to buy land to kill subdivisions and force city living. Maybe some type of government guarantee rent payments.
Inflation reason makes sense but they are putting a ton of cash into it. I'm sure there are crazier thoughts on what the reasons are.
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All of those explanations are plausible, but to me it's nothing more than having nothing better to do with the money. A new home should be rentable for at least 30 years, and 50 is not uncommon. So, no matter what, this is an asset that produces revenue constantly and reliably. The resale value might not go up, but at least the revenue comes in. Taxes are very predictable in most states. The only thing not predictable is the insurance and the actual rent price.
In a healthy market, equities would be a significantly better investment, but this must not be a healthy market. Many public equities (like Netflix) don't produce revenue (dividends) at all anymore.