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Old 04-17-2015, 04:31 PM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,312 posts, read 8,504,387 times
Reputation: 16607

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Maybe this is why.

There was an article in the WSJ a few days ago about this. We know hedge funds are buying 1000's of homes and often outbidding everyone. One says they can put together a bid in 7 minutes and never set foot into the house.
Some realtors says they can't get homes for local homebuyers because these guys are squeezing everyone else out.


A few years back I posted here about buying rental property in Atlanta and pretty much got told not to show up and that I was a slumlord who would only make things worse in Atlanta. I guess landlords are hated in Atlanta. I wonder how tenants will be treated by these large corporations vs small investor landlords like me. I have since bought homes in Milwaukee and Birmingham and rehabbed them and rented them out.

I would still like to move to Atlanta to live and have made a few trips to visit, but now I'm worried I won't be able to buy a house for myself or will have to pay way over it's real value.

I just sold my California house and while it was great for me, I felt bad for the buyers because I had been in in a similar market and it's frustrating for them. I had 8 offers in 2 days and 7 were over asking price. Not a good time for a first time homebuyer here, but I'll bet some buyers in Atlanta are probably dealing with this.

Are you guys dealing with bidding wars now?
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Old 04-18-2015, 05:56 AM
 
222 posts, read 242,560 times
Reputation: 147
Yes, bidding wars have increased over that last 6 months in the most desirable areas of town. If you're looking for investment property I would look at the following areas that are becoming more desirable by the minute:

Ormewood Park, Edgewood, West End, Adair Park, Knightpark, Riverside
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Old 04-18-2015, 04:35 PM
 
5,110 posts, read 7,125,531 times
Reputation: 3116
If it's an issue for intown areas, you're lucky because that's only a very tiny portion of the metro.
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Old 04-19-2015, 06:44 PM
 
439 posts, read 851,366 times
Reputation: 271
Quote:
Originally Posted by aslowdodge View Post
Maybe this is why.

There was an article in the WSJ a few days ago about this. We know hedge funds are buying 1000's of homes and often outbidding everyone. One says they can put together a bid in 7 minutes and never set foot into the house.
Some realtors says they can't get homes for local homebuyers because these guys are squeezing everyone else out.


A few years back I posted here about buying rental property in Atlanta and pretty much got told not to show up and that I was a slumlord who would only make things worse in Atlanta. I guess landlords are hated in Atlanta. I wonder how tenants will be treated by these large corporations vs small investor landlords like me. I have since bought homes in Milwaukee and Birmingham and rehabbed them and rented them out.

I would still like to move to Atlanta to live and have made a few trips to visit, but now I'm worried I won't be able to buy a house for myself or will have to pay way over it's real value.

I just sold my California house and while it was great for me, I felt bad for the buyers because I had been in in a similar market and it's frustrating for them. I had 8 offers in 2 days and 7 were over asking price. Not a good time for a first time homebuyer here, but I'll bet some buyers in Atlanta are probably dealing with this.

Are you guys dealing with bidding wars now?
I would not mind the posters who told you not to invest in rental property in Atlanta. I am surprised they even told you not to 'show up' when all they want is to praise Atlanta for how industrious and full of opportunities it is. If Atlanta is so good why hold an investor back? I think they were afraid you were going to turn their good ol' neighborhoods in Section 8 housing.

As to the case in point, as of Oct 2013:

Atlanta was the top market for institutional investors, who accounted for 29 percent of all home purchases there in September 13, according to a RealtyTrac report. Las Vegas was second at 27 percent, followed by St. Louis at 25 percent, Jacksonville, Florida, at 23 percent, and Charlotte, North Carolina at 17 percent.

What is also important to note is investor demand for foreclosed homes has driven up prices at a pace not seen since the boom that ended in mid-2006 unlike some here who affirm that Atlanta's Real Estate market is recovering on its own or due to the airport, entertainment industry, tourism, corporate investment, etc. In reality, investors’ mass purchases are helping push up values in cities hardest hit by the property crash, yes, Atlanta was hard hit with a 18.5 percent surge in July 2013 from a year earlier.

In spite of institutional investors, Atlanta is still GREAT to buy rental property; I would not let hedge funds discourage you. Specially from distressed areas in SE and SW (East Point, College Park) Atlanta. The median price of a distressed residential property is about $112,000, a discount of 41 percent from the $189,000 median price of a non-distressed property.

Besides, when financing became difficult, that pushed the entire lower tier of buyers into rentals. Atlantans either don’t have the down payment or they don’t have the credit score. That is specially true in the areas I just mentioned above. This 'rental push' created a huge demand for property management companies which Atlanta is well served of. So, for a fee you can have your properties managed by a company of your choosing.

You sound like you have liquidity and for a person like you, it is a prime time to purchase nationwide. I do not think you will necessarily pay for an overvalued property in Atlanta; if you research and know what and where to look. Their market is not fully recovered yet. I honestly do not think it will go back to what it used to be before the '07 crash as their prices were inflated. The market is correcting itself.
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