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"Demand" is a bit misleading right now. A friend of mine put her place up for sale in Houston and 80% of the offers she got were investors. I suspect that it's
by vannevar 6y ago
"Demand" is a bit misleading right now. A friend of mine put her place up for sale in Houston and 80% of the offers she got were investors. I suspect that it's not so much about actual housing demand, but the same huge appetite for investment that is driving the stock market boom.
- alert0 6y agoThere is a ton of money exiting the bond market looking for yield, this is driving up stocks reducing earnings. Probably a lot of people exiting their previous investments looking for places to park their cash. I'm in this boat.
- AnimalMuppet 6y agoAnd that's going to further mess up the housing supply for people who want to buy instead of rent.
- brundolf 6y agoI wonder if property tax could be stratified so people who actually live in their property pay less than outside investors? If something doesn't change, we may be careening towards a dark deepening of economic inequality.
- timw4mail 6y agoIt exists, it's called the Homestead exemption.
- AnimalMuppet 6y agoI looked that up. It seems to apply to shielding part of the equity in your house during bankruptcy, which seems to be unrelated to brundolf's comment about property taxes. Are there states that have different tax rates for lived-in and rented property? If so, can you supply some specifics?
- comeonseriously 6y agoThis is exactly the issue. Individuals cannot compete with a cash offer that often ends up much higher than the asking price. Almost nobody has that kind of cash on hand.