Hedge funds dumping properties? (Miami: real estate, 2014, renters)

[tallrick]

Hedge funds seem to be dumping properties while Warren Buffet's bank brings back subprime. Are we close to the Miami dump after the QE real estate pump? Wells Fargo edges back into subprime as U.S. mortgage market thaws | Reuters

[Wild Style]

dag they don't learn.

[hurricaneMan1992]

When the hedge funds buy up homes as if they were stocks, it is not unreasonable to expect them to eventually sell them off as if they were stocks.

What's going to happen to all the people renting properties owned by the hedge funds? On the flip side, the continuation of historically low interest rates, relaxing of lending standards, and possible shift to a buyer's market might get many renters back in to their own homes. Which .... on the flip side, should hold back rent increases and subdue investor interest somewhat. At any rate, nobody knows exactly what will happen, except that we will have an interesting couple years ahead.

[Sugah Ray]

I agree with borrowing more if they require a large down payment with a fixed rate(even if it is much higher)

The guy in the example probably had to make a $60k down payment for his 200k home. People like him are less likely to walk away than those investors who were just flipping properties.

[Wild Style]

Originally Posted by Sugah Ray

I agree with borrowing more if they require a large down payment with a fixed rate(even if it is much higher)

The guy in the example probably had to make a $60k down payment for his 200k home. People like him are less likely to walk away than those investors who were just flipping properties.

orrrrr God for bed they just let prices fall to where they should be so that people can afford this crap, as opposed to keeping prices artificially high by allowing uninformed buyers to over extend themselves debt wise.