3 ms·
About a third of housing sales now go to investors. We really don’t know what their balance sheets look like - but presumably someone is lending them money. Som
by lumost 4y ago
About a third of housing sales now go to investors. We really don’t know what their balance sheets look like - but presumably someone is lending them money. Some fraction of those loans will be variable interest rate.
Housing was returning 20% YoY - I wouldn’t be surprised to learn some investors are holding 10% mortgages which they may not be able to carry.
- avisser 4y agoI can't say I understand what will become of things if those investors go belly up, but I can't say I have any sympathy for investors who've made the housing crisis worse. Let them crash and put the houses back on the market.
- claytongulick 4y agoKeep in mind that "investor" doesn't necessarily mean big evil corp. An "investor" is also someone who saved up enough money for a down payment on a house in their neighborhood that they Airbnb and go over and clean and wash dishes to try to supplement their income.