3 ms·
Which they only did because they ran out of stuff to invest in (while still attracting so much other capital to invest at all), and the valuations of everything
by vmception 4y ago
Which they only did because they ran out of stuff to invest in (while still attracting so much other capital to invest at all), and the valuations of everything else was already stretched. not suggesting these firms were trying to do anyone favors by allowing people to afford homes the rest of the time, its more so that the math temporarily made sense with that much liquidity in the market so they jumped into real estate
(And yeah people would rather pay the government than invest in your startup so lets not pretend investing in main street was a real option)
- IMSAI8080 4y agoToo much cash chasing too few decent investment opportunities is exactly the problem. The more cautious end of institutional investors have nowhere to go. Blue chip shares are at incredibly high valuations and bonds are returning next to nothing. Interest rates needs to be at about 3 - 4% to make government bonds broadly attractive, which will then make residential property uninteresting to this kind of investor without putting too much strain on the regular home buyer.