Earlier quoted context omitted.
Every person or corporation that owns more than one residential dwelling should pay increased property taxes based on the number of residential dwellings they own. This is an easy problem to legislate away, our politicians are just too cowardly to decommodify housing.
This is an interesting idea! Some graduated tax rate for the number of dwellings + properties that way a second home or small time landlord can own say a dozen properties before the marginal taxes take too much of the marginal profits. What efficiencies are we giving up in this model?
Zillow seeks to sell 7k homes for $2.8B after flipping halt
521–530 of 634 posts
Re: Zillow seeks to sell 7k homes for $2.8B after flipping halt
#522Former real estate finance professional, here. If you were hoping this was a sign of the real estate market falling and perhaps its your chance to get a bargain, think again. > The company is seeking roughly $2.8 billion for the houses, which are being pitched to institutional investors, according to people familiar with the matter. Institutional investors (Blackstone, Blackrock, Colony, et al) will be being in bulk,…
That said, I'm not arguing for this specific rental model, either.
Re: Zillow seeks to sell 7k homes for $2.8B after flipping halt
#523Earlier quoted context omitted.
Given the current interest rate market, I think it's safe to assume they are borrowing money to purchase homes. They aren't taking out individual mortgages but I would be shocked to learn that they aren't borrowing millions through other forms of financing and then paying "cash" for homes.
I had the impression that this was happening because they had excess cash and nowhere particularly interesting to put it. Why would you borrow if you have cash sitting around and expectations of a good-to-crazy rate of return?
Irrespective of that, I agree that even if Zillow fails here, it doesn't bode well for the future of the RE market.
Re: Zillow seeks to sell 7k homes for $2.8B after flipping halt
#524Earlier quoted context omitted.
This framing feels backwards to me - I thought the reason institutional investors see it as a valuable asset is because of NIMBYs constraining supply for them via local policy and obstruction. The institutional investors are a symptom of that policy, but the NIMBYs (and incentives that exist for existing owners like prop13) are the cause. Real Estate scaling supply to meet demand is in direct conflict with old proper…
The investors themselves agree with you. Here's one such company's SEC filing: > We have selected markets that we believe will experience strong population, household formation and employment growth and exhibit constrained levels of new home construction. Source: https://www.sec.gov/Archives/edgar/data/1687229/000119312517...
Meanwhile the NIMBYs that are creating it blame everyone else and play victim.
Re: Zillow seeks to sell 7k homes for $2.8B after flipping halt
#525Earlier quoted context omitted.
> and housing is massively more affordable than elsewhere. Compared to NYC and SF? Sure. Compared to everywhere else, no: https://kinder.rice.edu/urbanedge/2020/06/23/rents-and-home-... https://www.houstonchronicle.com/news/houston-texas/houston/... But then that's just saying you'll find more affordable housing in cities that people don't want to live in, which would then go along with your point. > Not to say that…
Everywhere is struggling with housing right now, because nowhere has built enough since the great recession - and some places like California have probably been underbuilding for decades. Median prices are still pretty low there, though: https://www.realtor.com/realestateandhomes-search/Houston_TX... It does not strike me as a particularly attractive place to live - but I'm not a big city person, and prefer more moun…
That was my original point in another thread (under building during the great recession + an exodus of building talent).
> It does not strike me as a particularly attractive place to live - but I'm not a big city person, and prefer more mountains/nature. Its population has sure been growing, though, indicating that someone wants to live there.
Houston is growing at half the rate of Seattle, at least in the last 10 years (10% vs. 20% growth). Those cities growing the fastest seem to have the most pressure put on their housing markets, which makes sense.
Re: Zillow seeks to sell 7k homes for $2.8B after flipping halt
#526Earlier quoted context omitted.
> In less than 3 years the rent in our working class city went up 45%. I sympathize with that but I want to make sure people understand the dynamics. Prices are driven by supply and demand. If there's only one empty apartment in the city and you're willing to pay $2000/month, I am gonna have to pay $2100 month if I want to live there instead of you. That's sort of separate (though related to) prices of houses. What w…
> COVID, defund the police, rising crime, suburbs more attractive with work from home, etc. If there are any cities for which this is true, it’s cities like Seattle and Portland. Theoretically, they are not desirable to live in because of COVID, very high crime rates, not idea for working from home, huge public safety problems, etc. But rent is higher than it has ever been.
The main problem with all those cities is public transportation sucks.
Re: Zillow seeks to sell 7k homes for $2.8B after flipping halt
#527Former real estate finance professional, here. If you were hoping this was a sign of the real estate market falling and perhaps its your chance to get a bargain, think again. > The company is seeking roughly $2.8 billion for the houses, which are being pitched to institutional investors, according to people familiar with the matter. Institutional investors (Blackstone, Blackrock, Colony, et al) will be being in bulk,…
> I wish this would anger people more It is... But what are you going to do about it? Especially in the US, big business owns the politicians who can do something about it. And prop 22 shows that even if the public gets to decide, big business manages to control public opinion to their benefit. I believe this is only going to get worse for the next couple of decades. Something major would have to happen for this to c…
Re: Zillow seeks to sell 7k homes for $2.8B after flipping halt
#528Re: Zillow seeks to sell 7k homes for $2.8B after flipping halt
#529Earlier quoted context omitted.
I'm a 39 year renter flush with cash from 15 years of a professional job while living in austerity for the entire time. Soliciting free advice. You sound bullish so I wanted to share five risks in the short term that have been on my mind lately: 1) Evictions now allowed in 43 states after a pandemic moratorium on them. My state allowed them October 3rd. Supply. 2) A China conflict at any point. Disruption. 3) Taxes g…
I'm 45 and in the same boat as you ... except I've been waiting for a crash since 2016. I also made the mistake of keeping my cash in very cautious investments (and out of the SP500) ... thus missing the most historic bull run of my lifetime. Regardless though, as a result of working at a successful unicorn and selling a lot of my equity on the secondary market, I ended up benefitting from the Fed's insane money prin…
I share your holistic view, I don't want everyone around me suffering and acting tense. Its been that way in most of the country for a couple of decades now. A lot of people must really enjoy that, but I don't really see a true benefit to holding everyone down in such a way. To get a fairer society means less profits for employers so there's a lot of effort to contain those costs. My spouse is a teacher so I know what you mean, though teachers are fairly compensated where I live for sure. She makes more than I do with better benefits by a longshot. Most public school teachers in big cities are bad because the families/students are bad, and they have no authority to discipline them. Most teachers that care don't last and go teach for less money in the suburbs.
I'm in Chicago and while dangerous in 80% of the city, if you lived in the suburbs and don't mind winter, I've never known anyone that doesn't like it here. It's my favorite city in the country, it's the only city that the times I've driven out to move or visit elsewhere that I felt heartbroken. The only other place I've lived where I felt that way was France. I've lived all over and multiple countries on top of it. Crime and undesirable weather for most people keeps costs down here. I like Florida but it's such a diverse state that each area needs examined by itself. Just some thoughts.
My thoughts on buying for you are the same for me: at least wait until January. There's just too many near-term risks. My conclusion has been if things are still the exact same as today in Q1 2022, then go ahead and buy, my crystal ball is broken. That said, I'm deal hunting so if I can get anything for 15% off going rate or more, I'll probably just do it. I'm looking at homes that are in blue collar neighborhoods.
Re: Zillow seeks to sell 7k homes for $2.8B after flipping halt
#530Earlier quoted context omitted.
Own a bunch of shell companies that own a single property each. Real estate ownership is a mess. It can be nearly impossible for people to figure out who actually owns property if the entity buying wishes to remain secret.
Could you get around this by requiring the residence be owned by a natural person to qualify for a primary residency tax rate?
If the savings are great enough, it would make sense to pay someone to "own" the house, with a contract saying that they must act at your direction. This isn't some crazy idea either, that's basically the approach that's already taken by these same people that hide their identities through shell companies. The "owner" of the shell company is some random B'zean who is paid to be a rubber stamp.