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I've heard this argument before but I'm not too sure about it .
If the price is too high why are people buying the houses from flippers ?
If people stopped paying high prices , prices would be lower .
Another thing is that ironically the FHA loans that make homes "affordable " with low down payments actually make homes more expensive .
Supply and demand .
If FHA was not an option there would be less people that could buy a house because they'd need to have 20 percent down in cash or more ... But the good part is homes would be cheaper too .
Is anybody that makes a profit greedy ?
The flippers must be providing some value or the house would not sell . Especially nowadays home prices are freely available .
If someone buys the flipped home they must view it as a good value for them .
Prices of existing homes are too high, but people are buying them from flippers because they don't want to bother with home renovation (which most flippers, by the way, do a horrible job of, particularly when it comes to historic homes). Also, in many markets, including my market in Pittsburgh, there's a shortage of homes for sale.
And I agree, people shouldn't be buying homes with 3.5% or 5% down. If you only have such a small amount of cash, you're not ready to own a home. The traditional minimum of 20% is more reasonable. This would have the added benefit, as you noted, of ridding the market of many buyers, thereby reducing demand and price.
I agree that flippers are adding value, but the people who are buying homes from flippers, frankly, are idiots. Flippers, at least in Pittsburgh, buy the homes for literally a grand or two, remodel them as quickly as they can with the cheapest shyt they can buy, tear out everything period in the older or historic homes, and give them a pretty, shiny veneer. Then they list them at sky high prices, stupid and clueless people actually buy them, and the result is that home prices citywide increase. So, those bastards are at least partially responsible for the new mini housing bubble.
" Insatiable demand from hedge funds, private equity investors and foreign buyers, all armed with ready cash, are elbowing first-time buyers out of the housing market.
(
This is happening all across this country, in cities big and small; it's even happening in my city. First-time home buyers, as well as those looking for less expensive homes, have fierce competition from these investors, hedge funds, etc.; I've even heard that there are many cash, no-contingency offers from investors that the ordinary buyer can't even begin to compete with. This is nauseating. This is why I absolutely loathe investors. Those fiends are making the American dream of home ownership more and more unattainable each day. I'll say it again: a house is meant to be shelter and security, it is meant to be lived in and owned with pride by an individual or a family; it is not meant to be a commodity.
Prices of existing homes are too high, but people are buying them from flippers because they don't want to bother with home renovation (which most flippers, by the way, do a horrible job of, particularly when it comes to historic homes). Also, in many markets, including my market in Pittsburgh, there's a shortage of homes for sale.
And I agree, people shouldn't be buying homes with 3.5% or 5% down. If you only have such a small amount of cash, you're not ready to own a home. The traditional minimum of 20% is more reasonable. This would have the added benefit, as you noted, of ridding the market of many buyers, thereby reducing demand and price.
I agree that flippers are adding value, but the people who are buying homes from flippers, frankly, are idiots. Flippers, at least in Pittsburgh, buy the homes for literally a grand or two, remodel them as quickly as they can with the cheapest shyt they can buy, tear out everything period in the older or historic homes, and give them a pretty, shiny veneer. Then they list them at sky high prices, stupid and clueless people actually buy them, and the result is that home prices citywide increase. So, those bastards are at least partially responsible for the new mini housing bubble.
I was looking into Pittsburgh about a year ago. I know there are some areas that have gone up pretty significantly. That's pretty amazing if people can still buy homes there for $1,000-$2,000.
How much are they listing the homes they buy for $1k-$2k?
One good thing at least is that it seems there are still quite a few neighborhoods in Pittsburgh that haven't gotten out of control with pricing.
In L.A even in the neighborhoods that are considered very bad , homes are easily over $300k on the low end nowadays..
In Pittsburgh , pretty much anyone can buy a house if they aren't picky about neighborhood.
In L.A you have to make decent money even to buy in a very bad area. No such thing as buying a house for $50k or less even if it needs a ton of work. Even vacant lots are hundreds of thousands of dollars.
I guarantee you that's not how the Chinese are using it. They buy the house in Los Angeles, mom brings kids (her own and close relatives) to live in the US, who then go to free public schools here, meanwhile dad stays back in China making the real money. Well-meaning US gets played for a chump yet again.
If you are paying property tax the school is far from free, that's usually 40-50% of the school budget. Add in the sales taxes they pay and the economic stimulus they provide with money from another country. Not to mention most well-off foreigners don't send their kids to public schools. It would really be hard for this to be a losing proposition overall.
If you are paying property tax the school is far from free, that's usually 40-50% of the school budget. Add in the sales taxes they pay and the economic stimulus they provide with money from another country. Not to mention most well-off foreigners don't send their kids to public schools. It would really be hard for this to be a losing proposition overall.
Exactly. In one way or another, the families are paying for the kids' education.
Seems quite clear and makes sense when one realizes that a lot of property here in Vegas is being bought up for cash by foreign buyers. Are we selling our country off to the Chinese?
So Chinese involvement is 1/8 of 6% of all sales in America as stated by the article, so it is less than 1%. This also asked the question of what constitutes "involvement" in a sale? Were they sole owner, part owner, or?
Seems quite clear and makes sense when one realizes that a lot of property here in Vegas is being bought up for cash by foreign buyers. Are we selling our country off to the Chinese?
In some cities, yes, especially in urban California. In others, it's investors wanting to market rental backed securities at a profit.
It's a result of artificially low interest rates, but I don't want to get into the politics of that right now...
If you read the financial press carefully, you realize that Chinese in the know are getting their money out of the country as fast as possible. And United States real estate, even despite the meltdown of 2008-09, is likely a much safer investment than anything in their own country.
If you read the financial press carefully, you realize that Chinese in the know are getting their money out of the country as fast as possible. And United States real estate, even despite the meltdown of 2008-09, is likely a much safer investment than anything in their own country.
They also seem to be wanting to move out of China too..at least the ones with money.
64% have left or plan to leave!...that's a huge number. We don't have anything like that in the U.S among the rich here. While some threaten to move , they don't really do it that much.
"Previous studies show the main reasons rich Chinese are leaving is to pursue better educations for their kids, and to escape the pollution and overcrowding in urban China.
But analysts say there is another reason the Chinese rich are fleeing: to protect their fortunes. With the Chinese government cracking down on corruption, many of the Chinese rich—who made their money through some connection or favors from government—want to stash their money in assets or countries that are hard for the Chinese government to reach."
So looks like we might be getting a lot of rich , corrupt , Chinese coming here to the old ole' USA.
As an aside, I have noted that Clark county is buying up "distressed properties", having them renovated, and then turning them into public housing.
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