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Other reports say that hedge funds and other investors bought up lots of houses after the crash, and are now renting them out through management companies. If
by cvwright 9y ago
Other reports say that hedge funds and other investors bought up lots of houses after the crash, and are now renting them out through management companies. If true, that would both contribute to the lack of supply for purchase and capitalize on the demand for rentals.
- jeffrogers 9y agoThis is definitely a piece of the puzzle in California.
- logfromblammo 9y agoIn movie metaphor, Old Man Potter finally bought out Bailey Building & Loan when it went under in 2007, and now Bedford Falls is turning into Pottersville. As far as I am aware, the FNMA/FDMC system only guarantees mortgage loans for properties with existing [appraisable] structures, so borrow-to-build lenders face significantly higher risks and lower liquidity. It's harder to buy undeveloped land and build a hovel on it from local materials, than it is to buy an overvalued 5-bedroom McMansion, built from twigs, bird spit, and a 10-year horizon for its planned obsolescence.