If you sell a house these days, the buyer might be a pension fund • Hacker News Board

Re: If you sell a house these days, the buyer might be a pension fund

#21

Post by toomuchtodo » Wed, Jun 09, 2021, 3:34 PM UTC

coverband wrote: post #5

This doesn't make a lot of sense to me. Why would an entity trying to maximize profits pay an extra 20-50% to purchase an illiquid asset?

Reaching for yield. People will need housing, and assets are inflating because there’s more capital chasing fewer returns. Lock up housing assets, you’re locking in returns.

Re: If you sell a house these days, the buyer might be a pension fund

#22

Post by s17n » Wed, Jun 09, 2021, 3:35 PM UTC

This could be an interesting topic but a rant about cabals and the Great Reset is probably not the right starting point.

Re: If you sell a house these days, the buyer might be a pension fund

#23

Post by ilamont » Wed, Jun 09, 2021, 3:35 PM UTC

I'm concerned not only about the Blackrocks, but also smaller investors fueled by cheap cash and wealth fantasies based on flipping and FIRE/4HWW. The depressed, small city in northern New York featured in this article (https://www.uticaod.com/in-depth/news/2021/04/07/vaccination...) has people buying houses sight unseen from other states, which might be a good thing if they intend to live there, create businesses, build up the city's tax base, and invest in the community. However, I am very skeptical any of that will happen based on the many reasons cited in the article.

I can't see how this ends well.

Re: If you sell a house these days, the buyer might be a pension fund

#24

Post by habibur » Wed, Jun 09, 2021, 3:36 PM UTC

Sidestepping all the emotional comments. It's open market. Adopt to it.

1. Build more homes.

2. Sell to Blackrock or whatever at 2x or 3x your cost.

3. Profit!

Re: If you sell a house these days, the buyer might be a pension fund

#25

Post by fb13 » Wed, Jun 09, 2021, 3:36 PM UTC

mrverify wrote: post #10

Its worse than that. As a tenant, you cannot have people who are not on the lease stay long term without them going through a background check. This means that you may end up increasing the homelessness of relatives with temporary financial issues and also isolating potential mates with financial issues from living with their significant others until married, forcing the better financially equipped mate to take a hit…

It needs to be significantly easier to buy a first house than a second house. Getting a first mortgage is "easy" until you factor in the "mortgage insurance" scam. Rent seeking should not be such an appealing option to make money. The result is a bunch of scummy landlords, essentially utilizing the poors to "keep down" the other poors through rent exploitation. Basically the "upper middle" class is the gatekeeper preventing lower classes from having social mobility by maximizing rent exploitation. It's a great system because it prevents the real upper classes from having to get their hands dirty.

Re: If you sell a house these days, the buyer might be a pension fund

#26

Post by adflux » Wed, Jun 09, 2021, 3:37 PM UTC

I really wish we'd get some innovation in the housing market. 3D printing of houses or something could be epic. "Just" disrupt the current construction companies... It's clear they can't keep up with the demand right now.

Re: If you sell a house these days, the buyer might be a pension fund

#27

Post by nickthemagicman » Wed, Jun 09, 2021, 3:37 PM UTC

Ericson2314 wrote: post #6

DrJones1098 wrote: post #2

[flagged]

Sure, but that should be land held in the commons, not private home ownership. Private homeownership is just LARPing owning real capital to placate a new conservatized middle class, completely inefficient as rising prices cannot spur more land production and in fact preclude intensification use since the middle class homeowners don't have real capital to convert to apartments (even if zoning was relaxed), and histori…

One way that the govt can keep the economy stable is for the Federal reserve to just give the big banks money they call it 'injection'. It's framed as 'lending' but at extremely low interest rates.

The expectation is that the banks will lend this out to companies to stimulate the economy.

Apparently instead of loaning this money out to to small/medium businesses big banks have mastered operating small/medium businesses at scale and are combining their banking with asset acquisition.

So banks having endless capital essentially given to them from the government in our tax dollars...while also having asset and business branches in their own closed system ultimately leads to massive banks owning the world.

People think the government is on their side but it's not.

https://www.google.com/amp/s/www.pbs.org/newshour/amp/econom...

https://www.investopedia.com/articles/investing/081415/under...

Re: If you sell a house these days, the buyer might be a pension fund

#28

Post by Scoundreller » Wed, Jun 09, 2021, 3:39 PM UTC

mantas wrote: post #13

coverband wrote: post #5

This doesn't make a lot of sense to me. Why would an entity trying to maximize profits pay an extra 20-50% to purchase an illiquid asset?

Sort of like investing crazy money into startups. Big bets hoping to get a once-in-thousand-years cashcow.

Make enough bets and it works out.

Re: If you sell a house these days, the buyer might be a pension fund

#29

Post by nathan11 » Wed, Jun 09, 2021, 3:39 PM UTC

Probably worth pointing out this twitter account is promoting the idea that the 2020 election was stolen. To me that casts suspicion on their other assertions.

Re: If you sell a house these days, the buyer might be a pension fund

#30

Post by Scoundreller » Wed, Jun 09, 2021, 3:39 PM UTC

Faaak wrote: post #8

I'm sometimes afraid of these "mega-corps" that have the effect of really changing things. Sometimes in a bad way. Sadly, once you've got money, you can earn much more. What the limit to t->infinity ? One single corp dominating the world ?

Welcome to Costco, I love you.