Housing Bubble?

[TrueMaroonGrind]

More likely saying that you can't buy today and rent it out for enough to cover your mortgage. There's not a ton of opportunities for individual investors to scoop up property right now. But if you already own it and locked in those sub 3% rates, you probably have a cash cow rental.

I’ve been interested in getting into the rental game. This is exactly what’s kept me on the sidelines. The market is not viable for new investors currently. It’s way too risky for someone like me who can’t pay all cash and doesn’t have big capital to shield from a lemon or missed rent.

 

[johnson86-1]

View attachment 764201


+3.9% YOY and +50% last 5 years. Last year's Case Schiller actually looked "normal." Similar to the mid 1990's and 2010's.

It really is absurd the difference in buying 2020 or earlier and refinancing into a sub 3% rate and buying at today's prices with today's interest rates.

The way we punish younger generations by restricting housing may be a bigger 17ing than they get from medicare/social security.

 

[RBDog82]

Are you saying you're having trouble renting out your properties for more than the mortgage payments you're making?

Not necessarily. Just saying in the past I was getting $1000+/month in cash flow after expenses bc prices were lower and rates were < 4%. Now I’m getting ~$200-$400/month on the properties I’ve bought recently.

 

[WilCoDawg]

I think the "exclusive and desirable" is subjective. If you have a nicer starter home type neighborhood, I could see where rental restrictions would keep some of the riff raff out. But that's not exclusivity, just protectionism. Truly exclusive and desirable neighborhoods don't have to worry about riff raff because the pricing/value makes it exclusive.

FYI, HOA's are socialist in my book. A group of people who share their resources collectively and create rules and regulations that limit individual rights. The community pool that has limited hours and bans skinny dipping is socialism, putting that old aluminum Sears catalog above ground pool in the backyard and cannon balling butt naked at 10:30 PM is freedom.**

Ok. Whatever. I do agree with your hatred of HOAs.

 

[WilCoDawg]

Not to mention that it is likely unconstitutional. Unreasonable restraint on alienation. The best way to control rentals is not to outlaw outright. It's to regulate to the point that would-be owners/developers choose other areas to invest. A good way for neighborhoods to control rentals is to use restrictive covenants to regulate the term of rentals to "not less than 90 days nor more than 6 months." In this way, a would be property owner is blocked on both short term and long term rentals. If a would be owner wants to buy and rent out, they can do so, but it would be a pain in the @$$. For more flexibility, they would need to find a different neighborhood.

Your idea is a good one but there’s no way to regulate these type contracts. If the parties agree to dissolve the contract (or extend it), they can.

 

[johnson86-1]

Not necessarily. Just saying in the past I was getting $1000+/month in cash flow after expenses bc prices were lower and rates were < 4%. Now I’m getting ~$200-$400/month on the properties I’ve bought recently.

If I could net $200 per month on a property that wasn't a full time job because it's a ******** and going to have ****** renters, I would be buying as many as the bank would let me buy. Pretty much an appreciation game anywhere I'd want to buy, and it's hard to see great appreciation from the prices out there right now.

Granted, I know there are deals out there if you can find them, but I don't have the time or connections to.

 

[RBDog82]

If I could net $200 per month on a property that wasn't a full time job because it's a ******** and going to have ****** renters, I would be buying as many as the bank would let me buy. Pretty much an appreciation game anywhere I'd want to buy, and it's hard to see great appreciation from the prices out there right now.

Granted, I know there are deals out there if you can find them, but I don't have the time or connections to.

That’s pretty much what I’ve done. 30 houses and counting. Haven’t had a real job since 2020.

 

[ETK99]

That’s pretty much what I’ve done. 30 houses and counting. Haven’t had a real job since 2020.

I used to do the rental thing and what I liked, because there's a lot to hate, is the fact I can sell them 5 years later and make bank. I just got tired of the hassle with sorry humans.

 

[NashLA]

That is probably the biggest problem. Blackrock is buying roughly 30 percent of residential houses right now. They buy up a lot in the neighborhood and can inflate the average house price which then pushes up the value of all of the homes they own.

Imagine if you could buy 10 houses for $200k then over pay for 3 houses at $350k. Now all 10 houses are worth $350k. This is what they are doing.

Where do you get that 30 percent figure from? That's astonishing if true.

 

[Jeffreauxdawg]

Where do you get that 30 percent figure from? That's astonishing if true.

It's not true. 17 me... I can't figure out for the life of me how this keeps getting spread.

Blackrock doesn't buy any houses. They are not a private equity firm or hedge fund. They are an investment and advisory firm. The sell ETFs (iShares). They are like Vanguard or Fidelity.



Blackstone is the company everyone that reads or writes a Facebook post confuses with Blackrock. Blackrock technically has some ownership as an institutional investor in publicly traded companies that may own homes, so they definitely have exposure. But they just own stock of the public companies in that sector. Here's an example... The largest owners of the real estate sector of the S&P 500. Notice how Vanguard is #1 and Blackrock is usually a distant second? Neither are buying up house, just stocks.




So the fact they can't even get the name right should tell you how silly these rumors have become.


As for Blackstone? They currently own about 62,000 single family homes. They also do not buy individual homes. They buy portfolio companies that already own the homes. Last year they bought Tricon, a residential real estate company with 38,000 homes.



So at 62,000 Blackstone is number 3. Invitation Homes, publicly traded under INVH is the largest institutional owner of single family homes with a little over 85,000. The largest share holder of INVH.... Vanguard. Progress Residential is number right there at 85,000 as well.

Institutional investors only represent .5% of single family homes owners. "Investors" represent 10%. In current times investors are buying about 25% of all homes, but only 2% are institutional investors. The individual investors are mostly individuals buying 2nd homes or mom and pop rentals.



Full article


You buy a condo on the beach... Investor. Buy a house in Starkville for your kids to live in and rent out rooms... Investor. Buy a run down place to flip... Investor. Buy a new home and rent your current one out... Investor.


So Blackrock owns 0 homes.

Blackstone owns 62,000.

Total big investors (over 100 homes) own about 450,000 homes.

Regular shmucks own 105,000,000 homes


ETA. Blackstone does target low cost Sunbelt cities for their ownership, but it's a very small piece of the overall piece.

 

[dorndawg]

It's not true. 17 me... I can't figure out for the life of me how this keeps getting spread.

Blackrock doesn't buy any houses. They are not a private equity firm or hedge fund. They are an investment and advisory firm. The sell ETFs (iShares). They are like Vanguard or Fidelity.

View attachment 765165

Blackstone is the company everyone that reads or writes a Facebook post confuses with Blackrock. Blackrock technically has some ownership as an institutional investor in publicly traded companies that may own homes, so they definitely have exposure. But they just own stock of the public companies in that sector. Here's an example... The largest owners of the real estate sector of the S&P 500. Notice how Vanguard is #1 and Blackrock is usually a distant second? Neither are buying up house, just stocks.

View attachment 765167


So the fact they can't even get the name right should tell you how silly these rumors have become.


As for Blackstone? They currently own about 62,000 single family homes. They also do not buy individual homes. They buy portfolio companies that already own the homes. Last year they bought Tricon, a residential real estate company with 38,000 homes.

View attachment 765175

So at 62,000 Blackstone is number 3. Invitation Homes, publicly traded under INVH is the largest institutional owner of single family homes with a little over 85,000. The largest share holder of INVH.... Vanguard. Progress Residential is number right there at 85,000 as well.

Institutional investors only represent .5% of single family homes owners. "Investors" represent 10%. In current times investors are buying about 25% of all homes, but only 2% are institutional investors. The individual investors are mostly individuals buying 2nd homes or mom and pop rentals.

View attachment 765171

Full article


You buy a condo on the beach... Investor. Buy a house in Starkville for your kids to live in and rent out rooms... Investor. Buy a run down place to flip... Investor. Buy a new home and rent your current one out... Investor.


So Blackrock owns 0 homes.

Blackstone owns 62,000.

Total big investors (over 100 homes) own about 450,000 homes.

Regular shmucks own 105,000,000 homes


ETA. Blackstone does target low cost Sunbelt cities for their ownership, but it's a very small piece of the overall piece.

View attachment 765180

It's hard to believe sometimes that this website is free

 

[jethreauxdawg]

It's not true. 17 me... I can't figure out for the life of me how this keeps getting spread.

Blackrock doesn't buy any houses. They are not a private equity firm or hedge fund. They are an investment and advisory firm. The sell ETFs (iShares). They are like Vanguard or Fidelity.

View attachment 765165

Blackstone is the company everyone that reads or writes a Facebook post confuses with Blackrock. Blackrock technically has some ownership as an institutional investor in publicly traded companies that may own homes, so they definitely have exposure. But they just own stock of the public companies in that sector. Here's an example... The largest owners of the real estate sector of the S&P 500. Notice how Vanguard is #1 and Blackrock is usually a distant second? Neither are buying up house, just stocks.

View attachment 765167


So the fact they can't even get the name right should tell you how silly these rumors have become.


As for Blackstone? They currently own about 62,000 single family homes. They also do not buy individual homes. They buy portfolio companies that already own the homes. Last year they bought Tricon, a residential real estate company with 38,000 homes.

View attachment 765175

So at 62,000 Blackstone is number 3. Invitation Homes, publicly traded under INVH is the largest institutional owner of single family homes with a little over 85,000. The largest share holder of INVH.... Vanguard. Progress Residential is number right there at 85,000 as well.

Institutional investors only represent .5% of single family homes owners. "Investors" represent 10%. In current times investors are buying about 25% of all homes, but only 2% are institutional investors. The individual investors are mostly individuals buying 2nd homes or mom and pop rentals.

View attachment 765171

Full article


You buy a condo on the beach... Investor. Buy a house in Starkville for your kids to live in and rent out rooms... Investor. Buy a run down place to flip... Investor. Buy a new home and rent your current one out... Investor.


So Blackrock owns 0 homes.

Blackstone owns 62,000.

Total big investors (over 100 homes) own about 450,000 homes.

Regular shmucks own 105,000,000 homes


ETA. Blackstone does target low cost Sunbelt cities for their ownership, but it's a very small piece of the overall piece.

View attachment 765180

So they actually control more than 30% of housing in the US and avoid paying taxes. Unreal.

 

[Jeffreauxdawg]

So they actually control more than 30% of housing in the US and avoid paying taxes. Unreal.

 

[dudehead]

So they actually control more than 30% of housing in the US and avoid paying taxes. Unreal.

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