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Nah its a monetary problem. Basically, from a finance perspective: Cost to borrow money (for an institutional investor) and buy a house with that money genera
by ldjkfkdsjnv 5y ago
Nah its a monetary problem.
Basically, from a finance perspective:
Cost to borrow money (for an institutional investor) and buy a house with that money generates a return. Meaning they can buy these homes up all day long and make a profit.
- mywittyname 5y agoSingle family home are poor long term investments for institutions, outside of maybe California. Prices tend to follow inflation while property taxes and maintenance eat growth. States without income taxes tends to make up revenue through higher property taxes. Because of these facts, I don't see this trend of investors gobbling up SFHs to be sustainable. I suspect most of them are in this for a quick buck, and will quickly dump these homes the minute it becomes obvious that this was a dumb idea.
- adam_arthur 5y agoThey buy them with leverage though. A 3% yearly return with 5x leverage is 15% a year