Phoenix-Metro homes owned by Investors causing rents price spike (real estate, rentals)

[wilberry]

https://www.azfamily.com/2022/03/19/...-prices-spike/

[Potential_Landlord]

Originally Posted by wilberry

https://www.azfamily.com/2022/03/19/...-prices-spike/

Let's keep in mind that investor interest goes both ways. On the way up they accelerate the up, on the way down they accelerate the down. Right now they create additional marginal demand, and on the way down they will create additional supply. Works like a charm every cycle. I will step in when they are thoroughly disgusted by real estate.

[Voebe]

It just seems to boil down to this:

All the financial unhappiness in most of the world is caused either by the very wealthy or those trying to claw their way up.

I saw there's a new book on how billionaires profited from the pandemic.

[Maroon197]

Invitation homes owns nearly 9,000 sfh in Phoenix. Which is nearly 9,000 homes that now can’t be owned by families or people that are actually invested in the community. And that’s just one company. Allowing a basic fundamental human need like housing to become just another asset class and investment vehicle for the ultra wealthy is a moral crime.

[MN-Born-n-Raised]

Originally Posted by Maroon197

Invitation homes owns nearly 9,000 sfh in Phoenix. Which is nearly 9,000 homes that now can’t be owned by families or people that are actually invested in the community. And that’s just one company. Allowing a basic fundamental human need like housing to become just another asset class and investment vehicle for the ultra wealthy is a moral crime.

I'm not a fan of companies buying thousands of homes and turning them into rentals. Though I was a fan of companies gobbling up homes that no one wanted and fixing them up to resell or rent. For instance, back in 2010, we needed companies coming here in the Phoenix metro to gobble up SFH's.

All of these massive RE investments are happening more often because of massive tax breaks. Huge write-offs like depreciating homes even when the value goes UP, hidden income (which is easy to do), "tax-loss harvesting", Section 1031 of the tax code to dodge paying a tax, and even converting a rental property into a primary place of residence, etc. Basically, the laws were written by people who own rental property.

My point is, companies and individuals should not have special write-offs and the a lot of this would have never happened.

[Burning Madolf]

Originally Posted by MN-Born-n-Raised

I'm not a fan of companies buying thousands of homes and turning them into rentals. Though I was a fan of companies gobbling up homes that no one wanted and fixing them up to resell or rent. For instance, back in 2010, we needed companies coming here in the Phoenix metro to gobble up SFH's.

All of these massive RE investments are happening more often because of massive tax breaks. Huge write-offs like depreciating homes even when the value goes UP, hidden income (which is easy to do), "tax-loss harvesting", Section 1031 of the tax code to dodge paying a tax, and even converting a rental property into a primary place of residence, etc. Basically, the laws were written by people who own rental property.

My point is, companies and individuals should not have special write-offs and the a lot of this would have never happened.

Wait til the government gets more involved and "negotiates" a way for these corps. to unload some of their properties.

[YAZ]

Kinda creepy about how to fix this.

Last time, we let folks off the hook that owed big bucks on mortgages they had that they wouldn't get NOW, under current standards.

I.e., folks were "buying" homes with little or no cash down, interest only loans that switched to an ARM later, etc. Not to mention a lack of proof of income.

Completely different now, eh?

So, what happens if there's a 50% drop in home values (or more) in the coming years?

Are they off the hook?

Will rent prices drop accordingly?

[YAZ]

Originally Posted by Burning Madolf

Wait til the government gets more involved and "negotiates" a way for these corps. to unload some of their properties.

You beat me to it.

My guess is that we will ALL pay for this.