Bulk buying in the housing industry, hmmmm

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BTW any traders have trouble getting a mortgage? I can buy a house/condo in my price range outright with cash but they won't give me a mortgage for it so I can rent it out.700+ credit score, 2 +years tax returns ect.------------

same here...they having problems understanding my returns...not that i need the mortgage,but i tried to apply once..that was enough..fuck it..paid cash



--------------Hedge funds and private equity shops like McKinley Capital Partners started to quietly become landlords by buying up inventory last year. Now Main Street investors are following suit.-------------

this line is the warning sign for retail..the good ones are already been bought(some of them probably on on taxpayers money) by big guys(as usual)..what you going to get is shitty leftovers..just like in stock trading..if market was up,but your stocks are down-trust me-there is a reason for it..
 
Quote from Bob111:

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BTW any traders have trouble getting a mortgage? I can buy a house/condo in my price range outright with cash but they won't give me a mortgage for it so I can rent it out.700+ credit score, 2 +years tax returns ect.------------

same here...they having problems understanding my returns...not that i need the mortgage,but i tried to apply once..that was enough..fuck it..paid cash
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no kidding, people who are underwater are afraid of not paying ther mortgage because it will hurt their credit rating. They'd be better off just to save the mortgage money and put it in the bank until they get evicted and then they can just buy back the same house for cash.

they won't give you a mortgage because nobody anymore knows what a house is worth

in the old days anybody could get a mortgage, because no matter what the house was worth, it would always be worth more later
 
Morgan Stanley analyst Oliver Chang christened 2012 as the year of the landlord.
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Sort of a deceiving comment. Banks own plenty of homes, I wonder if they're lovin it?

It's a given at the end of the day the renter has nothing to show for the rent receipts but imo, neither will the landlord.

No appreciation in equity,

Net cash will go to increasing water,sewer and property taxes and other assorted hidden costs that the landlord will soon be unable to pass through.

Tax loss will be worthless if you haven't any income from other sources (laid off, etc).

Suppose you do show a postive cash flow, the landlords cost of living has gone up. you're just a cash churner, using the rental income to keep your head above water.
 
Quote from oldtime:

I guess it depends on how you read the demographics. Do most people live on the east or left coast, or do most people live in the middle?

for the last 20 years I paid $480/yr property taxes.

Houses that were $150 are now $50

What does New York have to offer most people?

Why would somebody from Peoria pick up and move to LA?
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NO.

My family lives in Atlanta, and every week they ask this question. And every week, I patiently explain it again.
 
The yld makes sense right now. The trouble is further property depreciation.

For properties this cheap you cannot get a mortgage. Especially for apt or condos, you cannot get a loan for the first 6 months.

I funded a purchase by taking a loan from my 401K. 4.7%.

njrookie
 
Quote from njrookie1:

The yld makes sense right now. The trouble is further property depreciation.

For properties this cheap you cannot get a mortgage. Especially for apt or condos, you cannot get a loan for the first 6 months.

I funded a purchase by taking a loan from my 401K. 4.7%.

njrookie
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I was not aware of that. I thought all you needed was 20% down and good credit.
 
What was left out of the Buffett article is the two words..."if practical".....vast ownership of individual rental housing looks good on paper.....almost impossible in the real world....it will take an army of people to just manage the tenants.....always remember that no two tracts of land/house are the same....many more legal issues and a nightmare when ready to exit investment.....

I would say that most (75-85%) of housing is priced "right"...you get what you pay for....

But it is a good business for the person who knows the local market, has good business sense, hands-on mangement himself, and can do some repairs.

The rent vs. own is a silly argument....it is a lifestyle choice that involves many personal issues....age, maritial status, job security, transfer possibilities, etc etc.....people now realize one can become "anchored to the house" and not able to get away before financial disaster hits.

SteveD
 
Quote from swag:

What I don't understand is the correlation with rents. Shouldn't rents be coming down also with so much availability? If so many people own and are making them rentals, that increased supply should bring down the price for rent. Or is there just a transitional period?
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Where I live, rents are going up and prices of houses coming down. Still majority of the people choose to rent like myself.

I am a doomer I am expecting gas prices to go much higher
 
I'm surprised that a few people have said that rents are going up. I'm sure that's what the realtors will tell you but it is not my experience in IL. In fact it's got considerably cheaper over the last five years in spite of the fact that there are so many empty and foreclosed properties.
 
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