> Buying property to rent doesn't seem like a good way to make money Landlordism is one of the oldest games. It is true that you do need quite a bit of capital

> Buying property to rent doesn't seem like a good way to make money Landlordism is one of the oldest games. It is true that you do need quite a bit of capital in order to 'start'. This is the reason why many big corporations like Blackstone have gotten into the game. In the UK, landlordism is a common way to 'becoming a millionaire'. After the '08 financial crash, the UK government even pledged to underwrite mortgages, making the game of starting a Monopoly-like property empire in the UK risk free for elites. Sheikh Khalifa is a big fan. [1] > The only way it makes sense is if capital gains ratchets up the property prices significantly. That's exactly what corporates do. It's the slow corporate fininancialization of the housing market [2]. "Between 2011 and 2017, some of the world’s largest private-equity groups and hedge funds, as well as other large investors, spent a combined $36 billion on more than 200,000 homes in ailing markets across the country. In one Atlanta zip code, they bought almost 90 percent of the 7,500 homes sold between January 2011 and June 2012; today, institutional investors own at least one in five single-family rentals in some parts of the metro area" [3] + "Scaling up portfolios consisting of thousands or tens of thousands of rental homes has made it possible for Wall Street firms to roll out financial instruments suited to “a rentership society”. Securitisation allows big investors to borrow against the value of the properties, to buy more properties and pay off old debt, and acts as a loan that tenants pay back with their rent checks. Wall Street is no stranger to the housing business in America. But their involvement as landlords of single-family homes is new, and so are the financial instruments they have developed." [4] [1] https://www.theguardian.com/uk-news/ng-interactive/2020/oct/18/revealed-sheikh-khalifas-5bn-london-property-empire https://www.theguardian.com/uk-news/ng-interactive/2020/oct/... [2] https://www.theguardian.com/artanddesign/2019/sep/10/push-film-review-leilani-farha-global-housing-crisis https://www.theguardian.com/artanddesign/2019/sep/10/push-fi... [3] https://www.theatlantic.com/technology/archive/2019/02/single-family-landlords-wall-street/582394/ https://www.theatlantic.com/technology/archive/2019/02/singl... [4] https://theconversation.com/wall-street-landlords-are-chasing-the-american-dream-heres-what-it-means-for-families-82146 https://theconversation.com/wall-street-landlords-are-chasin...