The only way we will “recover” is if the news media stops pushing a narrative and starts doing responsible journalism again. They have their guy now, let’s see how things are covered. It’s always easy to pick a small group out of a larger group and push them as if they are the majority of the groups. Left wing media and right wing media have done this for the last 4 years making it seem like we are on a verge of a civil war. Most leftists aren’t radical antifas or socialists, most right wingers aren’t crazy white power nationalist. But if you flip between a few networks or social media posts, those are the narratives that are pushed.
Social media users definitely need to start wising up to the information they are consuming. A class taught at UT by a former Intelligence official (my fiancée is getting her masters in foreign policy) explained how Russia has had a field day by pushing both narratives on social media.
We need honest journalism and smarter social media users before we will “recover”.
Smarter social media users would mean smarter people. We are going in the opposite direction, and quickly.
All part of the plan, my man.
I saw a dumb ass post today about how harmed we will all be because of Biden's 400k proposed tax increase. It was full of dumb things, but the worst is that it said our mortgages will go up. As if the mortgage rates are connected to a person's personal income tax rate, not the Fed or LIBOR. People are suckers.
The argument on the right is that the high earners are going to pass the burden on to the below 400k crowd through raising costs and fees...I know that it’s not exactly how this works, but that is t he argument they have
uh huh.. trickle down interest rates. It's not even close to how the economy works. If high earner landlords (the other point) could have raised rents in the past, they would have already done so. Taxes have nothing to do with the immutable law of supply and demand.
Well to be fair they are raising rents like crazy, and over inflating the housing market which is contributing to the housing crisis and the poor economy. Of course this has nothing to do with proposed tax cuts, but I don’t think landlords and property owners are going to be scared to raise the rents.
The housing prices are skyrocketing because mortgage rates are so low. Regarding rents, that is probably more market specific and connected to income and employment rates in those regions. Without looking at the data, that would be my guess. But right, none of that has anything to do with personal income tax rates.
So because mortgage rates are so low lenders and property owners are trying to recoup lost interest income by raising prices? This isn’t sarcastic...I’m trying to figure out how it works that a low interest rate on a loan makes a house or some other property worth more than when an interest rate is high?
Edit: maybe I should start a thread.
Please explain the housing and financial markets to a NCW welder.
Two disparate issues. Housing prices are rising because mortgage rates are low. It's not much different than the housing bubble 15 years ago, but with less risk (for a bunch of reasons). Anyway, it's straightforward. Rates are low, so your buying power is more. That will create more buyers at more expensive homes, therefore driving prices up. 15 years ago, there were literally bidding wars for homes between buyers. It's not that bad today, but people are still selling homes very quickly at asking prices. It used to be normal for your first offer to be 10% below asking, closing costs, home warranty, etc. That's not happening to the same degree anymore.
The rental issue is a bit different. You have more renters today, in the upper income levels, than ever before. Young professionals are not getting saddled into homes as they are single income longer, have contract jobs, etc. You also have a country that is increasingly urbanized, so again..more renters. High income people renting in cities drives up prices. It's been that way in NYC for 50 years, but now it's in SF, Chicago, DC, etc. My daughter and her roommate share a two bed condo in Arlington. It's about 1200 sq feet and $2800 per month. That's crazy. But that's how it is there. Her job would be a 60k job here in Richmond, it's 80k just 100 miles north. So this is all just supply and demand stuff.
I know from personal experience that prior to the pandemic that there were a lot of investors who had made a shit ton of money in software/IT, became wealthy and with low interest rates, bought up multi-family homes and turned them into Airb&bs. One landlord I knew, a previous software engineer, bragged about how he bought 4, 3 family houses, he lived in one unit and the rest were Airb&bs. He effectively took 11 rental units off the market and made more money renting those half time as opposed to having them under a full year’s lease. His and others doing the same, drove supply/demand and rental rates skyrocketed. Don’t know what the impact of covid has been but he sold one 3 family for $250K more than what he paid after a little more than a year. Pre-pandemic.
I also remember reading, maybe in the NYT, that institutional investors were getting in on it as they had clients with so much money that they were looking for other investment opportunities and started buying up multiple rental properties or single family homes, sometimes just leaving them empty, sometimes rehabbing and flipping but more often Airb&bing, thus taking further units off market, all of which decreases supply and drives cost through demand. The gig economy isn’t always “great.” Major cities, popular places and college towns saw the most negative impacts.
I know from personal experience that prior to the pandemic that there were a lot of investors who had made a shit ton of money in software/IT, became wealthy and with low interest rates, bought up multi-family homes and turned them into Airb&bs. One landlord I knew, a previous software engineer, bragged about how he bought 4, 3 family houses, he lived in one unit and the rest were Airb&bs. He effectively took 11 rental units off the market and made more money renting those half time as opposed to having them under a full year’s lease. His and others doing the same, drove supply/demand and rental rates skyrocketed. Don’t know what the impact of covid has been but he sold one 3 family for $250K more than what he paid after a little more than a year. Pre-pandemic.
I also remember reading, maybe in the NYT, that institutional investors were getting in on it as they had clients with so much money that they were looking for other investment opportunities and started buying up multiple rental properties or single family homes, sometimes just leaving them empty, sometimes rehabbing and flipping but more often Airb&bing, thus taking further units off market, all of which decreases supply and drives cost through demand. The gig economy isn’t always “great.” Major cities, popular places and college towns saw the most negative impacts.
All true. Blackstone made huge investments in rental properties starting right at the end of the recession when the foreclosure market heated up. They have been all in on single family home rentals for a decade now and have made a killing.
I know from personal experience that prior to the pandemic that there were a lot of investors who had made a shit ton of money in software/IT, became wealthy and with low interest rates, bought up multi-family homes and turned them into Airb&bs. One landlord I knew, a previous software engineer, bragged about how he bought 4, 3 family houses, he lived in one unit and the rest were Airb&bs. He effectively took 11 rental units off the market and made more money renting those half time as opposed to having them under a full year’s lease. His and others doing the same, drove supply/demand and rental rates skyrocketed. Don’t know what the impact of covid has been but he sold one 3 family for $250K more than what he paid after a little more than a year. Pre-pandemic.
I also remember reading, maybe in the NYT, that institutional investors were getting in on it as they had clients with so much money that they were looking for other investment opportunities and started buying up multiple rental properties or single family homes, sometimes just leaving them empty, sometimes rehabbing and flipping but more often Airb&bing, thus taking further units off market, all of which decreases supply and drives cost through demand. The gig economy isn’t always “great.” Major cities, popular places and college towns saw the most negative impacts.
Yeah I think it was black stone that decided to really run amok here. Took advantage of a horrible situation bought out many homes at well under value and then when the markets went up charged more in rent because it is easier to evict someone and get a new revenue stream than it is to foreclose. Took many homes that if the market had been allowed to adjust normally after the recession would have potentially been affordable family homes off the market. There are a lot of stories about these kind of shady private equity firms. Now they are I understand moving into trailer parks for much the same reason to drive up prices and extract as much wealth as possible and then move on while not doing much to reinvest in the communities.
Edit: meanwhile trump and the Rs create a story of xenophobia with minorities and immigrants stealing peoples opportunities to own homes and grow their wealth, while in fact it was the ultra rich doing the deed all along.
I know from personal experience that prior to the pandemic that there were a lot of investors who had made a shit ton of money in software/IT, became wealthy and with low interest rates, bought up multi-family homes and turned them into Airb&bs. One landlord I knew, a previous software engineer, bragged about how he bought 4, 3 family houses, he lived in one unit and the rest were Airb&bs. He effectively took 11 rental units off the market and made more money renting those half time as opposed to having them under a full year’s lease. His and others doing the same, drove supply/demand and rental rates skyrocketed. Don’t know what the impact of covid has been but he sold one 3 family for $250K more than what he paid after a little more than a year. Pre-pandemic.
I also remember reading, maybe in the NYT, that institutional investors were getting in on it as they had clients with so much money that they were looking for other investment opportunities and started buying up multiple rental properties or single family homes, sometimes just leaving them empty, sometimes rehabbing and flipping but more often Airb&bing, thus taking further units off market, all of which decreases supply and drives cost through demand. The gig economy isn’t always “great.” Major cities, popular places and college towns saw the most negative impacts.
All true. Blackstone made huge investments in rental properties starting right at the end of the recession when the foreclosure market heated up. They have been all in on single family home rentals for a decade now and have made a killing.
I know from personal experience that prior to the pandemic that there were a lot of investors who had made a shit ton of money in software/IT, became wealthy and with low interest rates, bought up multi-family homes and turned them into Airb&bs. One landlord I knew, a previous software engineer, bragged about how he bought 4, 3 family houses, he lived in one unit and the rest were Airb&bs. He effectively took 11 rental units off the market and made more money renting those half time as opposed to having them under a full year’s lease. His and others doing the same, drove supply/demand and rental rates skyrocketed. Don’t know what the impact of covid has been but he sold one 3 family for $250K more than what he paid after a little more than a year. Pre-pandemic.
I also remember reading, maybe in the NYT, that institutional investors were getting in on it as they had clients with so much money that they were looking for other investment opportunities and started buying up multiple rental properties or single family homes, sometimes just leaving them empty, sometimes rehabbing and flipping but more often Airb&bing, thus taking further units off market, all of which decreases supply and drives cost through demand. The gig economy isn’t always “great.” Major cities, popular places and college towns saw the most negative impacts.
Yeah I think it was black stone that decided to really run amok here. Took advantage of a horrible situation bought out many homes at well under value and then when the markets went up charged more in rent because it is easier to evict someone and get a new revenue stream than it is to foreclose. Took many homes that if the market had been allowed to adjust normally after the recession would have potentially been affordable family homes off the market. There are a lot of stories about these kind of shady private equity firms. Now they are I understand moving into trailer parks for much the same reason to drive up prices and extract as much wealth as possible and then move on while not doing much to reinvest in the communities.
Edit: meanwhile trump and the Rs create a story of xenophobia with minorities and immigrants stealing peoples opportunities to own homes and grow their wealth, while in fact it was the ultra rich doing the deed all along.
I forgot about the trailer parks. Independently owned, people living there for years, owner sells and bam, all the rules change and they play hard ball. Day late on your rent? Buh-bye. Dog barks too much? Buh bye. Don’t maintain the trailer you don’t own to certain standard? Buh-bye. Like health care in the 70s, real estate has been monitized and commodified.
Speaking of real estate, did you see where Jared dear boy’s Kushner Companies are evicting thousands of people from their rental properties? And just before the holidays too. What a family.
I know from personal experience that prior to the pandemic that there were a lot of investors who had made a shit ton of money in software/IT, became wealthy and with low interest rates, bought up multi-family homes and turned them into Airb&bs. One landlord I knew, a previous software engineer, bragged about how he bought 4, 3 family houses, he lived in one unit and the rest were Airb&bs. He effectively took 11 rental units off the market and made more money renting those half time as opposed to having them under a full year’s lease. His and others doing the same, drove supply/demand and rental rates skyrocketed. Don’t know what the impact of covid has been but he sold one 3 family for $250K more than what he paid after a little more than a year. Pre-pandemic.
I also remember reading, maybe in the NYT, that institutional investors were getting in on it as they had clients with so much money that they were looking for other investment opportunities and started buying up multiple rental properties or single family homes, sometimes just leaving them empty, sometimes rehabbing and flipping but more often Airb&bing, thus taking further units off market, all of which decreases supply and drives cost through demand. The gig economy isn’t always “great.” Major cities, popular places and college towns saw the most negative impacts.
Yeah I think it was black stone that decided to really run amok here. Took advantage of a horrible situation bought out many homes at well under value and then when the markets went up charged more in rent because it is easier to evict someone and get a new revenue stream than it is to foreclose. Took many homes that if the market had been allowed to adjust normally after the recession would have potentially been affordable family homes off the market. There are a lot of stories about these kind of shady private equity firms. Now they are I understand moving into trailer parks for much the same reason to drive up prices and extract as much wealth as possible and then move on while not doing much to reinvest in the communities.
Edit: meanwhile trump and the Rs create a story of xenophobia with minorities and immigrants stealing peoples opportunities to own homes and grow their wealth, while in fact it was the ultra rich doing the deed all along.
I forgot about the trailer parks. Independently owned, people living there for years, owner sells and bam, all the rules change and they play hard ball. Day late on your rent? Buh-bye. Dog barks too much? Buh bye. Don’t maintain the trailer you don’t own to certain standard? Buh-bye. Like health care in the 70s, real estate has been monitized and commodified.
Maybe some day we can have real estate choice from our company run private real estate service. Sure everyone should have access to affordable and decent living, but don’t take away my company sponsored real estate placement choice!
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The rental issue is a bit different. You have more renters today, in the upper income levels, than ever before. Young professionals are not getting saddled into homes as they are single income longer, have contract jobs, etc. You also have a country that is increasingly urbanized, so again..more renters. High income people renting in cities drives up prices. It's been that way in NYC for 50 years, but now it's in SF, Chicago, DC, etc. My daughter and her roommate share a two bed condo in Arlington. It's about 1200 sq feet and $2800 per month. That's crazy. But that's how it is there. Her job would be a 60k job here in Richmond, it's 80k just 100 miles north. So this is all just supply and demand stuff.
I also remember reading, maybe in the NYT, that institutional investors were getting in on it as they had clients with so much money that they were looking for other investment opportunities and started buying up multiple rental properties or single family homes, sometimes just leaving them empty, sometimes rehabbing and flipping but more often Airb&bing, thus taking further units off market, all of which decreases supply and drives cost through demand. The gig economy isn’t always “great.” Major cities, popular places and college towns saw the most negative impacts.
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There are no kings inside the gates of eden
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