131–140 of 312 posts
Private equity is the gamification of everything, in a compressed time frame. A company focused on longer time frames will cultivate their reputation. This takes the form of quality products and good customer service. PE has no need for any of this nonsense. They are looking for a quick return on their investment; to trade in all reputation and goodwill for their immediate value in cold hard cash. The more immediate…
Earlier quoted context omitted.
Not if private equity just snatches it all up. Yes build more. Also regulate the oligarchs until they no longer exist.
PE buying real estate is a long bet on housing prices. If supply increases enough, prices flatten out and then fall, and the longs get crushed. These investments are a bet on continuing to under-build and under-densify.
Housing demand will always be > 0 as long as population is growing and hence there can never be a oversupply.
Corporations shouldn't be allowed to own residential properties. Period.
For every complex and difficult problem, there is a simple, easy and wrong solution. If corporations can't own residential properties, how would anyone rent a house? How would home builders build model homes? How would Trusts manage real estate? This is a complex and nuanced problem.
Anecdotally: I've rented 5 different single-family houses in my life. All of them were rented from individuals.
Only 1 out of the 5 had a landlord that owned some other stuff that they also rented out.
For the remaining 4 out of 5, the landlord only had that singular property to rent: They lived wherever they lived, and they also had an extra house for whatever reason that they rented to me.
I just watched a video from Dave Ramsey title "What the Government Should Do to Fix the Housing Problem" He specifically calls out Institutional Investors and Foreign Corporations that have been purchasing single family housing and converting them into rental properties. I think he makes some good point in his video: https://youtu.be/_CrgniwSLLM
Why would someone listen to Dave Ramsey of all people? He is neither an economist, nor a Christian, he has nothing to contribute to the subject! His shtick is real estate investment, of course he wants to see Joe Public buy a starter home. The trouble is: real estate as a government-guaranteed investment vehicle is what brought us the housing affordability crisis.
... what bearing does that have on anything?
I just watched a video from Dave Ramsey title "What the Government Should Do to Fix the Housing Problem" He specifically calls out Institutional Investors and Foreign Corporations that have been purchasing single family housing and converting them into rental properties. I think he makes some good point in his video: https://youtu.be/_CrgniwSLLM
Why would someone listen to Dave Ramsey of all people? He is neither an economist, nor a Christian, he has nothing to contribute to the subject! His shtick is real estate investment, of course he wants to see Joe Public buy a starter home. The trouble is: real estate as a government-guaranteed investment vehicle is what brought us the housing affordability crisis.
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Why do you think that renters don't deserve to live in single-family homes?
Not at all what the GP said. They aren't saying landlords are the problem, they are saying Institutional Investors and Foreign Corporations being landlords are the problem.
Corporations shouldn't be allowed to own residential properties. Period.
Justice is not blind. Both sides make this so difficult. And expen$ive!
Corporations shouldn't be allowed to own residential properties. Period.
For every complex and difficult problem, there is a simple, easy and wrong solution. If corporations can't own residential properties, how would anyone rent a house? How would home builders build model homes? How would Trusts manage real estate? This is a complex and nuanced problem.
"How would home builders build model homes?" - This is a great point. I should have said "after the home is built"
"How would Trusts manage real estate" - for residential real-estate, they wouldn't. An individual would. But I just want to point out that I never said that corporations shouldn't own real estate. I said they shouldn't own residential real estate.
It's only as complex an nuanced as we make it. For most of history, individual people owned real estate. Only recently did we manage to screw that up. We can unscrew it.
Earlier quoted context omitted.
PE buying real estate is a long bet on housing prices. If supply increases enough, prices flatten out and then fall, and the longs get crushed. These investments are a bet on continuing to under-build and under-densify.
Sounds like trickle down housing to me. Me: "should we stop allowing private equity to hold property?" My Strawman: "nah let's build more houses to be snatched up by private equity, that way eventually maybe they'll be really nice and decide to lower prices for us someday due to the infallible balance of supply and demand that definitely hasn't been rigged to hell over the past half century. They certainly won't just…
How has "supply and demand" been "rigged"? A lack of supply isn't evidence of "supply and demand" being "rigged", it's it working exactly as predicted, not any different than oil prices going up when there's some geopolitical event threatening supply.