Redistribution of wealth happening now

[OldTengu]

The pension fund company Blackrock is buying up homes basically as soon as they hit market, in some cases offering millions above asking. Not a good omen.

If You Sell a House These Days, the Buyer Might Be a Pension Fund

Yield-chasing investors are snapping up single-family homes, competing with ordinary Americans and driving up prices.

www.wsj.com

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[The Heretic]

As a seller, I don't have too much of a problem with this. I know they are probably not going to compete with me for what I want to buy (land in the boonies so far out that most people won't want it), and if I can get what my neighbor got for his property, I can probably wind up with land, shop, living quarters, no mortgage and some $ left over. Then if my kids sell their house they can build on my land and have no mortgage too.

I don't blame people/entities for buying up property if they think it is a good investment, but I am not going to invest in any REIT funds. I remember 2008 - it was only 13 years ago.

 

[Longwalkhome]

A lot of stories about this today, I suspect the media will tell us what to think.

Do notice that covid has the herd moving so of course there is big money to be made in real-estate sales.

 

[OldTengu]

I suppose I'm looking at it from the buyer end. I have absolutely no way to compete in a market against an entity with a never ending pocketbook and a whole lot of employees paid to find houses and make ludicrous offers on them.

 

[Longwalkhome]

I suppose I'm looking at it from the buyer end. I have absolutely no way to compete in a market against an entity with a never ending pocketbook and a whole lot of employees paid to find houses and make ludicrous offers on them.

From my end I wonder if my retirement is being invested in this.

 

[OldTengu]

From my end I wonder if my retirement is being invested in this.

Probably. They're likely either hoping for a great ROI, or, as some have suggested, acting on behalf of .gov so that they can control a larger portion of available housing. If they're your landlord, they make the rules of tenancy.

 

[kylej24]

It's been happening for years. I have friends in Hawaii who say many condos have been snapped up to be used as AirBnBs or left vacant as they appreciate in value.

 

[nammac]

Sounds like another bubble that's bound to go POP…

 

[P7M13]

Capitalism at it's best. Plus, in a volatile market, putting your money into land is (generally) a good investment.

You *really* want to see the financial redistribution?
Watch the stock market plummet like in 2008, followed by the real estate market bottoming out. All this purchasing and double/tripling of home prices was buoyed by artificially depressed interest rates and hyperinflated stock values.
Then, when these "funds" are overextended, they will plead for rescue by the government.
If Capitalism were actually allowed to work like it should in 2008, a lot of the stock houses, AIG, and many banks would have closed post haste.

 

[cigars]

Lately I've been getting calls out of the blue from realtors asking if I want to sell. While I could make a serious killing if I sold today, where the heck would I go? Real estate is going up everywhere. While I'm eager to bail out of Oregon, everywhere I'm interested in going has been getting overrun by the blue virus and prices in those places are getting ridiculous. So if I did take the money and run, my move might be lateral at best and an area newly turned blue. So basically money doesn't mean anything anymore. I figure that my best bet is to stick it out here where at least we are comfortable and the enemy is a known quantity. Well, for now anyway. Can't say if someone offered me three times asking price that I wouldn't take it and live out of a tour bus until the apocalypse.

 

[The Heretic]

Capitalism at it's best. Plus, in a volatile market, putting your money into land is (generally) a good investment.

As long as you do not pay more than it is worth. My property valuation is more than it is worth, but I will take the $ and run, letting whomever buys it deal with paying 50% more than it should be worth - not my problem.

 

[Longwalkhome]

As long as you do not pay more than it is worth. My property valuation is more than it is worth, but I will take the $ and run, letting whomever buys it deal with paying 50% more than it should be worth - not my problem.

Hopefully you can find a place these buyers don't own. If they are paying 50% over then your new hose will have to show them a profit.

I won't sell

 

[The Heretic]

Hopefully you can find a place these buyers don't own. If they are paying 50% over then your new hose will have to show them a profit.

I won't sell

Neighbors sold their property for $800K and its tax valuation is within $10K of my property. Personally, I think my property is better (ten times as many conifers of 60-100 years age), and the acreage is 2X+ their acreage.

If I sell at $800K or more, then that is more than double what I paid for it, plus I sold $100K of timber 3 years ago, so even if you include the improvements, property tax, and interest on the mortgage, I will not only have lived here for free, but I will have been paid to live here as I will make a good profit even including every penny I have spent on the property for whatever reason.

My "new house" showing a profit? Not sure what you mean there.

 

[Longwalkhome]

Neighbors sold their property for $800K and its tax valuation is within $10K of my property. Personally, I think my property is better (ten times as many conifers of 60-100 years age), and the acreage is 2X+ their acreage.

If I sell at $800K or more, then that is more than double what I paid for it, plus I sold $100K of timber 3 years ago, so even if you include the improvements, property tax, and interest on the mortgage, I will not only have lived here for free, but I will have been paid to live here as I will make a good profit even including every penny I have spent on the property for whatever reason.

My "new house" showing a profit? Not sure what you mean there.

I worded my post very poorly. I meant to make the point that where you move to will cost more if these guys get there ahead of you. Sorry for my sloppiness in posting but I am tired and ready for bed.

 

[The Heretic]

I worded my post very poorly. I meant to make the point that where you move to will cost more if these guys get there ahead of you. Sorry for my sloppiness in posting but I am tired and ready for bed.

If I were buying in an area that most other people wanted to buy in, that would be true, but I will be buying outside that area - outside of a distance that most people would consider a reasonable commute. Since I am retired, even with people working from home, they do not want to live 60-100 miles away from a city. I do.

Plus, I will be buying land - most people want to buy a property with a house on it, even if they are going to build a new house. In my zoning (FA20 - Forestry Agriculture) you have to get a housing permit (strict requirements to do that on FA land), get a prec test, drill a well if it doesn't have one, and run power to the house site - all of that can easily add $100K to the cost of the land and there is no guarantee that you will get the permit.

You can usually tell if the property is outside a "reasonable commute" distance by the price they are asking - inside the area the prices are double the prices outside the area.

 

[EUGENE the REALTOR]

It's what Californians are doing. Selling their homes to move to a cheaper place.

 

[WWShooter]

Feels like 10/24/1928. Party (until the crash)!

And all those Blue folks moving from cities to rural areas aren't going to change their politics.

 

[The Heretic]

It's what Californians are doing. Selling their homes to move to a cheaper place.

Some percent of them yes, when they can work remotely it is a wise thing to do.

Others, like my brother, are downsizing - they just sold their house. I wouldn't mind them moving back here nearer the family homestead, but I doubt they will - the rest of their family live down there too, whereas mine lives here.

 

[EHJ]

You all may want to read this. Thoroughly.

Investment Management & Financial Services | BlackRock

BlackRock is one of the world’s preeminent asset management firms and a premier provider of investment management. Find out more information here.

www.blackrock.com

 

[Jonnyuma]

I could make a serious killing if I sold today, where the heck would I go?

That's exactly how l ended up in eastern Oregon back in '04.
AZ was BOOMING so l sold my 1500 sq ft house for roughly 300% of what l paid for it in 2000. Reinvesting in that market would have been stupid so l looked to other areas and EO got the thumbs up. Short list included CO, UT, and TX.

I'm in the process of buying a house right now (closing date is tomorrow) and it took a couple of years to find one. What l thought were going to be (and should be) $180-200k homes are $300k and up. Then theres the monied-up newcomers offering $5-10k over asking price.

Interest rates are ticking up right now... l actually bought points this time around to get under 3% and used the VA to keep my cash liquid. They (interest rates) should remain fairly steady at 3.XX% into next year.

Forecasters were predicting a slowing of price increases and an eventual dip, but nothing like the housing market implosion of 08 due to safeguards and stricter lending standards put into place after that debacle. I say "were" because those predictions were made months ago when Biden's inflation economy was still being called a conspiracy theory.

Maybe @EUGENE the REALTOR can verify some of this... I'm just a consumer, not a realtor. But during my epic home search l started reading some of the same websites, blogs, and financial news that my agent(s) were reading just so l could participate in a conversation. Riveting stuff.