Corporations will own the majority of homes by 2030

[KNS]

https://www.msn.com/en-us/money/news/they-can-outbid-your-children-rfk-jr-warns-that-corporations-are-trying-to-buy-every-single-family-home-in-america-and-they-are-on-track-to-own-60-of-homes-by-2030/ar-AA1hp2cK?ocid=hpmsn&cvid=ba5dac64e2d34f44a4b644d64ae96928&ei=217

Anyone trying to buy a home recently has probably gotten outbid and lost out at the last minute to a cash buyer. Article explains what is going on in many cases.

[dennis in se pa]

It will come to pass that no one but the rich will own a car or a house. Everyone will rent. Part of the plan to destroy the middle and lower class so the rich can rule. The end of democracy as we know it.

[LWJ]

Counter argument: I read that the Boomers will start downsizing beginning in 2024 and continue for over a decade. This is supposed to reduce demand significantly resulting in price drops.

[GH85Carrera]

I get calls regularly from people wanting to buy our house. Just like offers on my 911, it ain't for sale at any reasonable price.

When we moved into this house we both agreed, we leave feet first on a gurney, on in a wheelchair off to the nursing home.

I bought my first house in the days of 18% interest. I was single and bought it on just my income. I worked one full time job, shot weddings on Saturdays in the spring. I ate a lot of beans and rice and potato soup and struggled to pay my mortgage, utilities, and insurance. I did NOT have cable TV or internet, and drove an long paid for car.

[fanaudical]

My opinion - We saw that trend start back in ~2008 during the subprime fiasco. Banks were foreclosing homes and sitting on them to get the prices back up so they could mortgage again.

[1990C4S]

Originally Posted by dennis in se pa

It will come to pass that no one but the rich will own a car or a house. Everyone will rent. Part of the plan to destroy the middle and lower class so the rich can rule. The end of democracy as we know it.

If everyone rents, then the returns on the investment must be good for the owners. So why wouldn't you buy a house rather than rent? You would need to be 'rich' to own or rent...

I live in an area with extremely high housing prices. There are still people clambering to buy, because high housing prices create high rents.

[epbrown]

Originally Posted by KNS

Anyone trying to buy a home recently has probably gotten outbid and lost out at the last minute to a cash buyer. Article explains what is going on in many cases.

How’s that work? If I’m renting, I expect no maintenance or repairs on my end. Does the landlord have people come out and do the lawn when you rent a house?

[Evans, Marv]

Although I've been retired for close to 20 years now, I can't imagine how people make it now days. Housing (bought and rented) in this area always runs the highest (or closed to it) in the country. Recently a local news peice reported to live a decent life and be able to afford a house in this area, a family had to make $240K/yr. That seems insane to me and doesn't surprise me tha only corporations could afford to buy houses.

[Ayles]

Originally Posted by epbrown

How’s that work? If I’m renting, I expect no maintenance or repairs on my end. Does the landlord have people come out and do the lawn when you rent a house?

The house next door was bought with cash ($840k) and turned into a high end rental for $4k a month. Lawn service and hot tub servicing are included in rent. Gardners show up once a week.

[Arizona_928]

Originally Posted by Ayles

The house next door was bought with cash ($840k) and turned into a high end rental for $4k a month. Lawn service and hot tub servicing are included in rent. Gardners show up once a week.

That's a low ROI...


I feel something fishy is going on with the market...

[Ayles]

Originally Posted by Arizona_928

That's a low ROI...


I feel something fishy is going on with the market...

Could be, its been empty since the end of July. The owner is an older guy, he is there almost daily doing some project. The odd thing is, it was in perfect condition and updated by the previous owners. So tons of time and money spent on unnecessary upgrades for it to sit empty for months at a time.

[zakthor]

Originally Posted by Ayles

The house next door was bought with cash ($840k) and turned into a high end rental for $4k a month. Lawn service and hot tub servicing are included in rent. Gardners show up once a week.

Tax, insurance, maintenance and opportunity cost of money adds up to 5-7% of house cost per year. That’s assuming no mortgage. 840k house costs a minimum of 3500/month just to hold. With gardener and hot tub I guess they’re counting on appreciation?

Owning costs more than renting.

Structural reason is I can deduct expenses on my rental house, roof, windows, furnace, painter - all reduces my taxes. Pretty sweet deal. Why is it I can’t deduct the same expenses for the house I actually live in?

Fed tax policy is to subsidize the rich landowners.

I’ve thought it might be good local tax policy to require all federally deducted property expenses to be taxed at 100% to local county. Would probably take care of many rental homes and airbnb pretty darn quick.

If we want to subsidize housing there’s gotta be a more efficient way than giving money to the rich owners to encourage them to rent out properties for less.

I’m benefitting and it feels like a giant scam

[1990C4S]

Originally Posted by Arizona_928

That's a low ROI...


I feel something fishy is going on with the market...

The real ROI has to include the increase in value. As a fixed $800k house it's a crap return, but in five to ten years it might be double the value.

[Paul T]

There are some misleading things in that article….for ex. it says 3 companies own 88% of the S&P500. That is a very misleading stat. They may collectively have 88% of SPX invested within their mutual funds (I haven’t validated that, seems high to me, but let’s say it’s true), but that does not mean “the companies” own all of that equity, you and I and everyone else who’s invested in those funds do. They just happen to be some of the largest mutual fund managers out there….but the real owners are individuals, pensions, 401k’s, endowments, etc….

[craigster59]

Houses in my area shot up in value and are holding, even with the higher interest rates. Mostly due to the construction costs these days, newer homes in my area are into the low 7 figures.

I'm most likely selling next year and when I move I will rent for a bit just to examine the local markets before sinking my equity into a new home.

With these "corporate owned homes" I bet we won't see an "eviction moratorium" put in place the next time there's a pandemic.

[craigster59]

Originally Posted by Paul T

There are some misleading things in that article….for ex. it says 3 companies own 88% of the S&P500. That is a very misleading stat. They may collectively have 88% of SPX invested within their mutual funds (I haven’t validated that, seems high to me, but let’s say it’s true), but that does not mean “the companies” own all of that equity, you and I and everyone else who’s invested in those funds do. They just happen to be some of the largest mutual fund managers out there….but the real owners are individuals, pensions, 401k’s, endowments, etc….

Yes, but you're giving these managers the authorization to invest your money in a way you may not agree with. ESG could be one example.

[Paul T]

Originally Posted by craigster59

Yes, but you're giving these managers the authorization to invest your money in a way you may not agree with. ESG could be one example.

Only if you blindly invest without reading prospectus/PPM….nothing is being done in hiding. People are just lazy or don’t pay attention. Most money is in index funds anyway….

[Bill Douglas]

They can buy my house, but it's 6 million dollars.

[epbrown]

Originally Posted by craigster59

Yes, but you're giving these managers the authorization to invest your money in a way you may not agree with. ESG could be one example.

I don’t see how. The fee you’re paying the fund is literally you paying them to invest your money, so reasonably you should have a good idea what you’re paying for them to do.

[GH85Carrera]

I can't imagine NOT owning a house. I bought me first house before I really should have financially, but the landlord at my last rental was broke and unable to fix the roof leak at my rental. Eff that, I bought a house and never looked back.

I will never rent again.