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It's unlikely that an investor will pay significantly more than a non-investor for a liquid asset. There is certainly some premium, but a large premium would im

by lumost 2y ago

It's unlikely that an investor will pay significantly more than a non-investor for a liquid asset. There is certainly some premium, but a large premium would imply something very strange about housing as a market.

John_Cena 2y ago
> a large premium would imply something very strange about housing as a market. It is an investment and the actions to protect such an investment is detrimental to using the house as a home. Corporations get representation in government these days so nothing changes to benefit the would-be family home buyer.
Dig1t 2y ago
In articles like these: https://www.nbcnews.com/business/real-estate/who-s-outbidding-you-tens-thousands-dollars-house-hedge-fund-n1274597 https://www.nbcnews.com/business/real-estate/who-s-outbiddin... "Who's outbidding you by tens of thousands of dollars for that home of your dreams? A hedge fund" I am assuming "outbidding you by tens of thousands of dollars" means they are paying higher prices right? 10k+ extra is a nontrivial amount of money for most Americans. That's enough to help offset taxes or pay the real estate agent fees.
t-writescode 2y ago
I presume a lot of the harm that hedge funds and similar housing investment operations do isn't in the buying and selling of a single house (though there is that); but in the buying and selling of houses in whole markets, artificially impacting the price over the long run. And barring a catastrophic event like the housing crisis, housing prices never really go __that__ down. It's like broader inflation. If prices increase by 2% and wages by 1%, after 10 years that's a much broader gulf that is far, far harder to recover from.
quickthrowman 2y ago
Housing is neither liquid nor fungible. There are a limited number of single family homes and existing homeowners do everything in their power to prevent more from being built. Give it 20 years and we’ll be where Canada, Australia, and the UK are where a house is 10x or more the median yearly salary. I’ve come to terms with the fact that I’ll never own a house because of the greed of exisiting homeowners and the cowardice of politicians. It is what it is, and it’s entirely out of my control.
rightbyte 2y ago
Big investors are closer to the money hose. Money cost less for them since they got the future inflation in their pockets already.

by lumost 2y ago

John_Cena 2y ago

> a large premium would imply something very strange about housing as a market. It is an investment and the actions to protect such an investment is detrimental to using the house as a home. Corporations get representation in government these days so nothing changes to benefit the would-be family home buyer.

Dig1t 2y ago

In articles like these: https://www.nbcnews.com/business/real-estate/who-s-outbidding-you-tens-thousands-dollars-house-hedge-fund-n1274597 https://www.nbcnews.com/business/real-estate/who-s-outbiddin... "Who's outbidding you by tens of thousands of dollars for that home of your dreams? A hedge fund" I am assuming "outbidding you by tens of thousands of dollars" means they are paying higher prices right? 10k+ extra is a nontrivial amount of money for most Americans. That's enough to help offset taxes or pay the real estate agent fees.

t-writescode 2y ago

I presume a lot of the harm that hedge funds and similar housing investment operations do isn't in the buying and selling of a single house (though there is that); but in the buying and selling of houses in whole markets, artificially impacting the price over the long run. And barring a catastrophic event like the housing crisis, housing prices never really go __that__ down. It's like broader inflation. If prices increase by 2% and wages by 1%, after 10 years that's a much broader gulf that is far, far harder to recover from.

quickthrowman 2y ago

Housing is neither liquid nor fungible. There are a limited number of single family homes and existing homeowners do everything in their power to prevent more from being built. Give it 20 years and we’ll be where Canada, Australia, and the UK are where a house is 10x or more the median yearly salary. I’ve come to terms with the fact that I’ll never own a house because of the greed of exisiting homeowners and the cowardice of politicians. It is what it is, and it’s entirely out of my control.

rightbyte 2y ago

Big investors are closer to the money hose. Money cost less for them since they got the future inflation in their pockets already.