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Good or Bad when Corporations start buying homes (1 Viewer)

IC FBGCav

Footballguy
I don't know, just asking, they bought my old one and had at least 30 more.  I live in NC and the company was from Texas.

 
Nah, our boy @Getzlaf15 buys properties.  They are buying to hold.
Corps bought the vast majority of foreclosures after the crash.   One of the reasons for the lack of inventory everywhere these days as they are not selling because their rents are high and keep going higher.

 
Corps bought the vast majority of foreclosures after the crash.   One of the reasons for the lack of inventory everywhere these days as they are not selling because their rents are high and keep going higher.
So transfer of wealth.  From 2008.

 
yep.  Would have been awesome to have $10 mil back then and buy a 100 homes for $100k each and now have them worth $200k and have $150k per month in rent coming in each month.
Company around here purchased their properties in the last 2 years.

 
IMO, very good.   Them buying up all those foreclosed homes enabled the economy to recover faster.    I got slammed hard by the downturn and had to short sell my home and move and down size back then.
Made me move cause neighborhood went to hell but...

 
Huge difference living with home owners and rental.....I still drive by my old place like it was an old girlfriend, they should cut the frigging grass.

 
No one ever parked on the street, then you got a house with 4 cars parked on it, then people parking trailers in the front yard, doesn't take much.

 
All the new renters made it go to hell?
If it was renters before and renters afterwards, no difference. 

The shift from homeowners who live there to renters who pay rent to an out of state company is almost always bad for "the neighborhood".

If you're talking about empty houses that were foreclosed suddenly getting tenants, that's a different story. Of course that's a good thing.

But  I'm talking about homeowners who live there, sell and move out and the home then becomes a rental home.  That's bad for neighbors who live there and plan on staying. 

 
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Define "corporations." While rental ownership is still highly fragmented and dominated by "mom and pops" who only own 1 rental property (I believe last percentage I saw quoted was like 90~95% of landlords), most likely you are talking about the hedge funds who after making boatloads shorting the housing market swooped in to buy up tons of distressed properties in urban markets and are now the nation's largest landlords. One could argue they helped the economy and housing market recover, others could argue they have exacerbated the affordable housing shortage in many markets by taking a large amount of the supply of homes off the market.

In general though, you don't want a neighborhood to go into too high a % of rentals or it will indeed start to torpedo desirability. One issue with the hedge funds is they tend to buy in a very concentrated manner, taking over entire areas/neighborhoods. Some are better than others at code enforcement, tennant screening, and upkeep... some aren't much better than slumlords. There have been periods of time where the rental market was stagnant to very bad (like the early 2000's) so if the housing market is indeed turning (which a lot of people are speculating is happening right now), it will be interesting to see if the hedge funds decide to dump their properties or if they will just continue to buy up more.

 
Looks most likely like a subsidiary of Amherst. Not exactly a hedge fund, but basically the same thing except they are almost entirely focused on residential real estate. They own something like 20,000 rental properties across America.

 

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