06-10-2021, 01:33 AM
I was not expecting the volume of homes bought by investors. In many markets it is 1 in 5 to 1 in 4 homes are purchased by permanent capital.
Your average American cannot compete with this as many of these properties are purchased at 20% over asking.
The long term problem is for many people, owning a home is their only path to equity. If this continues, most average Americans will be permanent renters. They will be shut out of wealth.
Source:
https://www.wsj.com/articles/if-you-sell-a-house-these-days-the-buyer-might-be-a-pension-fund-11617544801
Tin Foil Hat Rant: I see this by me too. I live in a rural area and tillable acreage is scooped up by really big operators. Farmer Joe milking some cows won't make it. Woods is sold to mostly wealthy people who use it for hunting or vacations get-a-ways. The acre or two the old farm house sits on is sold at a stupid sum. Or it is demolished and some giant mansion is built and sold for an even stupider sum. Bought by some wealthy out-of-towner of course.
Someone please explain to how this will not start to look like some feudal system in time. And I got it. Wealth only moves in one direction: into more consolidated and larger sums. The system (whichever system we are talking about) is designed by those whom it benefits. Bill Gates is allowed to dominate who uses what OS via Microsoft. Then he starts sticking his hands in pharmaceuticals. Next he starts buying up thousands of acres of farms and ranches.
This is not new. 120 years ago we had to break up the trusts. I do not like the idea of government stepping into what is essentially the private sector. However, what other means do Americans have to tell wealthy entities they cannot play by one set of rules they make for themselves and expect everyone else to play by a starkly different set of rules .... they make for us via our "representatives". There is a limit. I think Americans need to regain their humanity, their voice, and their hutzpah and reassert themselves.
Your average American cannot compete with this as many of these properties are purchased at 20% over asking.
The long term problem is for many people, owning a home is their only path to equity. If this continues, most average Americans will be permanent renters. They will be shut out of wealth.
Source:
https://www.wsj.com/articles/if-you-sell-a-house-these-days-the-buyer-might-be-a-pension-fund-11617544801
Tin Foil Hat Rant: I see this by me too. I live in a rural area and tillable acreage is scooped up by really big operators. Farmer Joe milking some cows won't make it. Woods is sold to mostly wealthy people who use it for hunting or vacations get-a-ways. The acre or two the old farm house sits on is sold at a stupid sum. Or it is demolished and some giant mansion is built and sold for an even stupider sum. Bought by some wealthy out-of-towner of course.
Someone please explain to how this will not start to look like some feudal system in time. And I got it. Wealth only moves in one direction: into more consolidated and larger sums. The system (whichever system we are talking about) is designed by those whom it benefits. Bill Gates is allowed to dominate who uses what OS via Microsoft. Then he starts sticking his hands in pharmaceuticals. Next he starts buying up thousands of acres of farms and ranches.
This is not new. 120 years ago we had to break up the trusts. I do not like the idea of government stepping into what is essentially the private sector. However, what other means do Americans have to tell wealthy entities they cannot play by one set of rules they make for themselves and expect everyone else to play by a starkly different set of rules .... they make for us via our "representatives". There is a limit. I think Americans need to regain their humanity, their voice, and their hutzpah and reassert themselves.