The Real Estate Investing Thread

[KITNfury]

CNS that's crazy. My mom rents a 3br in PV for $1800

I don't the exact situation there, but 3500/mo is very high for almost any kc suburb, and those  that can command those prices don't have junky decks.

[KITNfury]

Very civil discussion. Good job, everyone. I agree that something needs to be done about investment groups buying up single-family homes at an alarming clip, but I'm unsure what can be done, legally.

I would assume that this could be regulated just like the banking industry could be regulated. By passing a law at the federal level. Maybe that could only stop investors buying properties outside of their state?  I don’t know, but this one thing is going to drive a dreary future for our kids if something isn’t resolved or some other changes aren’t made to the relief of the market.

Home ownership is basically the secret to building middle class wealth in America and “starter” homes are now too expensive to be starter homes. This also ties heavily into depressed wages and increases in college costs/loans.

I fear for America’s middle class.

If foreign people can buy property here, I better be able to buy out of state.

[michigancat]

When housing has a profit motive and the government doesn't guarantee housing for everyone, a housing crisis is kinda inevitable

[kim carnes]

Lmao, stop trolling

[CNS]

Very civil discussion. Good job, everyone. I agree that something needs to be done about investment groups buying up single-family homes at an alarming clip, but I'm unsure what can be done, legally.

I would assume that this could be regulated just like the banking industry could be regulated. By passing a law at the federal level. Maybe that could only stop investors buying properties outside of their state?  I don’t know, but this one thing is going to drive a dreary future for our kids if something isn’t resolved or some other changes aren’t made to the relief of the market.

Home ownership is basically the secret to building middle class wealth in America and “starter” homes are now too expensive to be starter homes. This also ties heavily into depressed wages and increases in college costs/loans.

I fear for America’s middle class.

If foreign people can buy property here, I better be able to buy out of state.

I think that foreigner ownership should not be allowed either.

[CNS]

CNS that's crazy. My mom rents a 3br in PV for $1800

I don't the exact situation there, but 3500/mo is very high for almost any kc suburb, and those  that can command those prices don't have junky decks.

It’s just one anecdotal case, and it was a couple years ago. We have a big inventory problem in my town. It’s crazy.

[catastrophe]

When housing has a profit motive and the government doesn't guarantee housing for everyone, a housing crisis is kinda inevitable

You realize you’re basically just critiquing capitalism.

[steve dave]

Yet michigancat participates in capitalism, curious


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[star seed 7]

 

[michigancat]

Yet michigancat participates in capitalism, curious


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He got me

[sys]

If it’s really a problem, maybe they should stop corporations from owning 1000’s of homes. Or, has KITN and his umpteen houses contributed to the discussion? Maybe tax the ever loving crap out of >2 homes and earmark it to subsidize housing?

corporations (or kitn) owning houses doesn't decrease the number of dwellings available for people to live in.

[sys]

I agree that something needs to be done about investment groups buying up single-family homes.

I think that foreigner ownership should not be allowed either.

you people are legit insane.

[sys]

Home ownership is basically the secret to building middle class wealth in America and “starter” homes are now too expensive to be starter homes.

very hard for the same asset to serve as a continually appreciating investment and an inexpensive consumer good.

[sys]

When housing has a profit motive and the government doesn't guarantee housing for everyone, a housing crisis is kinda inevitable

you people are legit insane.

[DQ12]

Fwiw, I don’t really think there’s a housing crisis in KC.  There’s plenty of affordable (~>300k) houses in/around KC.  Maybe not just really affordable nice houses.

affordable for who?

People who can afford houses for at or around 300k.

What percentage of the population would you say this is?

The population looking to buy a house?  Probably a pretty sizable portion.

[CNS]

Home ownership is basically the secret to building middle class wealth in America and “starter” homes are now too expensive to be starter homes.

very hard for the same asset to serve as a continually appreciating investment and an inexpensive consumer good.

Yet that is pretty much what has happened for several generations.

[sys]

Yet that is pretty much what has happened for several generations.

before we look at the data, i'd like to know how you think that is possible.  what is the mechanism?

[michigancat]

When housing has a profit motive and the government doesn't guarantee housing for everyone, a housing crisis is kinda inevitable

you people are legit insane.

I don't see any sort of realistic fix out there but what I said is pretty rational.

[sys]

it's one of the stupidest things i've ever read (non-dax edition), contradicted by both empirical evidence and logic from first principles.

[michigancat]

I don't see any sort of realistic fix out there but what I said is pretty rational.

it's one of the stupidest things i've ever read (non-dax edition), contradicted by both empirical evidence and logic from first principles.

You need to settle down

[kim carnes]

I don't see any sort of realistic fix out there but what I said is pretty rational.

it's one of the stupidest things i've ever read (non-dax edition), contradicted by both empirical evidence and logic from first principles.

You need to settle down

Explain how it would work so you can be endlessly ridiculed and laughed at

[michigancat]

I don't see any sort of realistic fix out there but what I said is pretty rational.

it's one of the stupidest things i've ever read (non-dax edition), contradicted by both empirical evidence and logic from first principles.

You need to settle down

Explain how it would work so you can be endlessly ridiculed and laughed at

I literally said there isn't a realistic fix

[OB_Won]

If it’s really a problem, maybe they should stop corporations from owning 1000’s of homes. Or, has KITN and his umpteen houses contributed to the discussion? Maybe tax the ever loving crap out of >2 homes and earmark it to subsidize housing?

corporations (or kitn) owning houses doesn't decrease the number of dwellings available for people to live in.

Nope, it doesn’t. But, it’s not even debatable that it decreases the affordability of those homes.

There’s little doubt most of us can afford >$300K homes. But, look at the MEDIAN family income.  The DTI stress placed on these folks is disheartening.

[sys]

But, it’s not even debatable that it decreases the affordability of those homes.

that's Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!).  of course it doesn't.

1.  the demand for housing is unchanged, the supply is unchanged.
2.  it does not impose a restriction on the construction of new houses.
3.  corporations own a tiny proportion of sfhs.


why do people get irrationally outraged at the idea of sfhs as rentals, but do not feel the same about multifamily housing?  it's very strange.

[sys]

Yet that is pretty much what has happened for several generations.

before we look at the data, i'd like to know how you think that is possible.  what is the mechanism?

oh well.

here's the data for the u.s.  go down to the case-shiller home price index vs. cpi chart for the u.s. and hit all to see the full time series.  you can see that until relatively recently, housing simply paced with inflation.  there's also a similar chart for the u.k. farther down.  kinda fun.

https://www.longtermtrends.net/home-price-vs-inflation/