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Long time real estate pros in Southern California are seeing a phenomenon they have never seen before. The 1 percent is buying up all the low end SoCal real estate! This was reported by the LA Times.
"I found this sort of thing happening in Nevada, a shortage of housing on the low end. It was primarily because of the laws implemented to slow down the foreclosure process. But the speed at which the low end RE was gobbled up was astounding, going from almost 20,000 units down to 1,600 units available in just a short time."
Sounds good to me. The mortgage industry is even more socialist than Europe. That tells you right there that it's got to end and the more rational free market has to take hold.
Either way, the so-called 1% won't be able to win when it comes to the OWS-lefto-fascists.
If they buy up the property, they are taking advantage of the "historical financial crisis" that "they and their cronies in the Bush administration" caused.
If they do nothing.....they are "failing to invest" in those communities that "are most in need of support in these trying times"
No real estate properties for me.......but one of my hobbies is buying land and reselling. I'll buy postage stamp parcels for quick turnaround......and up to about 5 acre parcels for subdivision. That's 10 half acre lots for building, which is a nice sized lot in this area (DC metro). I've had pretty decent success with that. Sometimes i'll delve into perc testing...sometimes not....just depends on the lot. The current market is well suited for this type of investment. Buy low, sell high. That's the name of the game.
The quicker these can be picked up and improved, the quicker the value can stabilize. If the property sits, the infrastructure deteriorates. Experienced this first hand from a buyer in our neighborhood. He bought a small house at the end of the block for 30% less than we bought ours for. Rather than be mad about it, I was very pleased. "Good for him" I thought. He bought it for a steal, probably zero/small mortgage so he's unlikely to default, and fixed up the exterior with new siding and trim paint. Now there's one less foreclosure in our neighborhood and values quickly stabilized based on forward comps.
The house across from us is under foreclosure/short sale, and I'm desperately hoping that it's scooped up at least 20-30% less than we bought ours for, so they can repeat the process and bring the par value back up.
Lets see .... you are trying to sell your house. What would you rather have? A 1% er buy it or let it sit on the market for another year or so costing you money?
Lets see .... you are trying to sell your house. What would you rather have? A 1% er buy it or let it sit on the market for another year or so costing you money?
Exactly. It bothers me that the term "1%" is even used in this scenario. Why does it matter who is purchasing? It just goes to show that those who hate the "1%" really don't have a clue about life in these United States. Slap a label on it, and commence to hating, even if they don't know what they're actually railing against.
The current real estate market is beginning to look more like an page from a continuing story of "It's a Wonderful Life." We went from most people owing homes to being foreclosed and little opportunity to buy back. It is like George Bailey helped us all buy homes but the rich Henry F. Potter has ruined the economy causing massive job losses and ultimately the loss of their homes. Mr. Potter is now buying up all those foreclosed home for pennies on the dollar. Mr. Potter is then renting these same homes, many back to their owners, at a rent far in excess of their mortgage costs.
The US became successful by putting money in the hand of the working people. Those people invested their money in their homes. Now we have the 1% swooping in like vultures picking the last bits of flesh from those that can't fight back. All this will do is put more money in Potter's pocket and reduce citizens to indebted servants.
Is this a good trend? Consider how many families are now homeless. One in six children go to bed hungry every night. The real unemployment rate is around 18%. The jobs that do become available are paid so little that most people still can't afford a roof over their heads.
Do you think the real estate market will ever come back under these conditions? You can easily see the effects on the economy when all the money is concentrated in the pockets of the few. What happens when the top 1% owned all the property?
Tennessee Ernie Ford, "I owe my life to the company store."
The current real estate market is beginning to look more like an page from a continuing story of "It's a Wonderful Life." We went from most people owing homes to being foreclosed and little opportunity to buy back. It is like George Bailey helped us all buy homes but the rich Henry F. Potter has ruined the economy causing massive job losses and ultimately the loss of their homes. Mr. Potter is now buying up all those foreclosed home for pennies on the dollar. Mr. Potter is then renting these same homes, many back to their owners, at a rent far in excess of their mortgage costs.
The US became successful by putting money in the hand of the working people. Those people invested their money in their homes. Now we have the 1% swooping in like vultures picking the last bits of flesh from those that can't fight back. All this will do is put more money in Potter's pocket and reduce citizens to indebted servants.
Is this a good trend? Consider how many families are now homeless. One in six children go to bed hungry every night. The real unemployment rate is around 18%. The jobs that do become available are paid so little that most people still can't afford a roof over their heads.
Do you think the real estate market will ever come back under these conditions? You can easily see the effects on the economy when all the money is concentrated in the pockets of the few. What happens when the top 1% owned all the property?
Tennessee Ernie Ford, "I owe my life to the company store."
Americans get what Americans deserve. They have owned homes they had no business owning and now they are paying the price.
I said 2 years ago that this was going to happen. The 1% can afford to buyup housing and sit on it. Even worse is the fact they are using government money to do so, which only the top percentage of people have access to.
Did you know that you needed special government permission to bid on a very large percentage of government owned properties, even if you are paying cash?
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