#home equity for cash
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globalmortgage · 2 months ago
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6.8% Cap Rate In LA! + Hotel 101 + U.S. Mortgage Rates + Turning Home Equity Into Cash
The current CHIPS Act is creating many jobs in the U.S., and this gentrification is driving home prices in the Midwest, where chip manufacturers are building their facilities - each responsible for well over 10,000 new jobs. We just met a couple buying homes in a midwest town where Google has their data centres and Intel is building a semiconductor fab - in this popular midwest town, home prices have doubled in the last few years. 
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cashhomebuyersseattle · 3 months ago
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Marmot Buys Homes specializes in providing swift and fair solutions to homeowners in Seattle facing financial difficulties. Whether you need foreclosure help, mortgage assistance, or wish to sell an underwater house, we are here to support you. Our services cater to those needing to sell houses fast for cash, offering quick home sales, and effective property liquidation in Kitsap, King, and Pierce counties. If you're struggling with a home that has no equity or simply need a reliable cash home buyer, our experienced team ensures a hassle-free process, tailored to your unique circumstances. Contact Marmot Buys Homes today for a confidential consultation and let us help you navigate your property challenges with ease.
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besthomeequity · 5 months ago
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you10tubesworld · 6 months ago
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Use Your Rentals to Buy More Rentals with a HELOC or HELOAN
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Welcome back, Rent To Retires! 🌟 In this exciting episode, Adam Schroeder sits down with Graham Parham from Highlands Mortgage to dive deep into the world of HELOCs (Home Equity Line of Credit) and HE Loans for investment properties. Learn how to leverage these financial tools to …
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investingdrone · 7 months ago
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Buying A Second House Without Selling The First 2024
Thinking about buying a beach house or a mountain getaway? Buying a second House can be a great investment for many reasons. Maybe you want to spread out your investments in real estate, have a place to relax on vacation, or even rent it out and make some extra money. There can even be tax advantages! But buying a second House while still holding onto your first one can be tricky. This article…
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ftale23 · 8 months ago
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We set the standard for online mortgage lending
This is not an offer to enter into an agreement. This is not a commitment to make a loan. Not all customers will qualify. Information, rates and programs are subject to change without prior notice. All products are subject to credit and property approval. All approvals are subject to underwriting guidelines. Not all products are available in all states or for all dollar amounts. 
visit here for more: Home equity cash-out
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privamortgage · 1 year ago
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Difference Between Home Equity Loan Vs. Mortgage Loan
Mortgage
 A home equity loan Understanding how a home equity loan and mortgage work and what differences they have can help you determine your options for mortgage financing
1. Purpose
2. Loan Type
3. Loan Term
4. Loan Amount
5. Tax Benefits
6. Risk
The Differences Between a Mortgage and Home Equity Loan
 A mortgage is usually used to buy a house, and a home equity loan is used to tap into a home’s equity for other purposes, like debt consolidation or home improvement, but they can serve other purposes too.
 For example, you can use a cash-out refinance or a first mortgage to tap into a home’s equity, and you can use a home equity loan as a part of your down payment when buying a house.
 So what are the major differences?
How to Qualify
Mortgage loans and home equity loans both have the same approval process. You complete a loan application and prove that you can afford the property. Typically you’ll provide the following:
· Paystubs for the last 30 days
· W-2s for the last 2 years
· Tax returns for the last 2 years if you’re self-employed
· Bank statements for the last 2 months
· Proof of employment
Final Thoughts
A home equity loan and mortgage are similar, yet different. They are both liens on your property but have different purposes and qualifying factors.
 If you’re buying a home, you’ll likely borrow a first mortgage, but as you build equity in the home, you may apply for a home equity loan to use the equity but keep the home. Either way, you’re borrowing against your home’s value. Make sure you can afford the payments and put the money to good use to make the most of your investment.
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parvej121 · 1 year ago
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Top Reasons to Refinance Your Mortgage
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Refinancing a mortgage is a financial strategy that many homeowners consider at some point in their homeownership journey. Essentially, it involves replacing your existing mortgage with a new one, often on more favorable terms. Refinancing can be a powerful tool for managing your financial future, and there are several compelling reasons why homeowners choose to do it. In this blog post, we'll explore the top reasons to refinance your mortgage.
1. Lower Interest Rates
One of the most common reasons homeowners refinance their mortgages is to secure a lower interest rate. When interest rates drop below the rate on your current mortgage, it can be an excellent opportunity to refinance and reduce your monthly payments. Lower interest rates can save you thousands of dollars over the life of your loan, making it a financially savvy move. 2.Reduce Monthly Payments
If your current mortgage payments are straining your monthly budget, refinancing can help ease the burden. By extending the loan term or securing a lower interest rate, you can reduce your monthly payments, providing more breathing room for your finances. This can be especially beneficial during times of economic uncertainty or when facing unexpected expenses. 3.Shorten the Loan Term
Conversely, some homeowners choose to refinance to shorten the loan term. Switching from a 30-year to a 15-year mortgage, for example, can help you build equity faster and pay off your home sooner. While monthly payments may increase in this scenario, you'll save significantly on interest over the life of the loan.
For more information visit → https://learnwithvm.com/
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cashloanscanadainc · 1 year ago
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Unlock the value of your home and get the funds you need! With flexible terms and low interest rates, our Home Equity Loans are a smart way to finance your next big project or investment.
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robertreich · 6 months ago
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How Wall Street Priced You Out of a Home
Rent is skyrocketing and home buying is out of reach for millions. One big reason why? Wall Street.
Hedge funds and private equity firms have been buying up hundreds of thousands of homes that would otherwise be purchased by people. Wall Street’s appetite for housing ramped up after the 2008 financial crisis. As you’ll recall, the Street’s excessive greed created a housing bubble that burst. Millions of people lost their homes to foreclosure.
Did the Street learn a lesson? Of course not. It got bailed out. Then it began picking off the scraps of the housing market it had just destroyed, gobbling up foreclosed homes at fire-sale prices — which it then sold or rented for big profits.
Investor purchases hit their peak in 2022, accounting for around 28% of all home sales in America.
Home buyers frequently reported being outbid by cash offers made by investors. So called “iBuyers” used algorithms to instantly buy homes before offers could even be made by actual humans.
If the present trend continues, by 2030, Wall Street investors may control 40% of U.S. single-family rental homes.
Partly as a result, homeownership — a cornerstone of generational wealth and a big part of the American dream — is increasingly out of reach for a large number of Americans, especially young people.
Now, Wall Street’s feasting has slowed recently due to rising home prices — even the wolves of Wall Street are falling victim to sticker shock. But that hasn’t stopped them from specifically targeting more modestly priced homes — buying up a record share of the country’s most affordable homes at the end of 2023.
They’ve also been most active in bigger cities, particularly in the Sun Belt, which has become an increasingly expensive place to live. And they’re pointedly going after neighborhoods that are home to communities of color.
For example, in one diverse neighborhood in Charlotte, North Carolina, Wall Street-backed investors bought half of the homes that sold in 2021 and 2022. On a single block, investors bought every house but one, and turned them into rentals.
Folks, it’s a vicious cycle: First you’re outbid by investors, then you may be stuck renting from them at excessive prices that leave you with even less money to put up for a new home. Rinse. Repeat.
Now I want to be clear: This is just one part of the problem with housing in America. The lack of supply is considered the biggest reason why home prices and rents have soared — and are outpacing recent wage gains. But Wall Street sinking its teeth into whatever is left on the market is making the supply problem even worse.
So what can we do about this? Start by getting Wall Street out of our homes.
Democrats have introduced a bill in both houses of Congress to ban hedge funds and private equity firms from buying or owning single-family homes.
If signed into law, this could increase the supply of homes available to individual buyers — thereby making housing more affordable.
President Biden has also made it a priority to tackle the housing crisis, proposing billions in funding to increase the supply of homes and tax credits to help actual people buy them.
Now I have no delusions that any of this will be easy to get done. But these plans provide a roadmap of where the country could head — under the right leadership.
So many Americans I meet these days are cynical about the country. I understand their cynicism. But cynicism can be a self-fulfilling prophecy if it means giving up the fight.
The captains of American industry and Wall Street would like nothing better than for the rest of us to give up that fight, so they can take it all.
I say we keep fighting.
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globalmortgage · 2 months ago
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6.8% Cap Rate In LA! + Hotel 101 + U.S. Mortgage Rates + Turning Home Equity Into Cash
GMG | Investor
[Super rare] Newly-constructed multi-family unit in Los Angeles with a 6.8% cap rate!
4 Units x 5 bedrooms + 5 bathrooms + attached garage (total 20 bedrooms!). Approximate Lot Size: 7,499 sq. ft. Year Built: 2024
The property will be delivered with a 5-year master lease with government-assisted transitional housing organization.
Located just 0.2 miles from the University of Southern California's Health Sciences Campus and offers easy commutes to Downtown Los Angeles, Mid-City, and the Westside.
The 2024 construction ensures no deferred maintenance and strong in-place income. The property will be delivered fully occupied through 2024-2029, providing investors with immediate stabilized cash flow greater than 6.8% cap rate on current income.
Projected Monthly Rent: Y1 $23,000; Y2 $23,690; Y3 $24,400; Y4 $25,132; Y5 $25,886
Contact me directly for detailed pricing and tailored financing options.
Hotel101
Last week, I hosted a webinar with Hotel101, a company offering the opportunity to invest in 'hotel' rooms  in the form of freehold condo titles and a share of the gross room revenues, with NO expenses or operational and maintenance responsibilities.
They are positioned as a 3-star hotel with 5-star amenities in super popular locations such as Niseko and Madrid. Owners also get free nights each year at the hotels! Watch the video to learn more, or contact us here!
U.S. Mortgage Rates
Last week saw the lowest mortgage rates in the past 15 months. The difference in year-on-year mortgage payments (Sep 2023 vs Sep 2024) is about $300 a month or $3,600 a year, all things equal.
The current CHIPS Act is creating many jobs in the U.S., and this gentrification is driving home prices in the Midwest, where chip manufacturers are building their facilities - each responsible for well over 10,000 new jobs. We just met a couple buying homes in a midwest town where Google has their data centres and Intel is building a semiconductor fab - in this popular midwest town, home prices have doubled in the last few years. 
Many of these skilled labourers will need to rent, and this theme is consistent throughout the U.S. It's never been a better time to be a landlord in the U.S. 
Our Foreign National mortgage rates are very low, and you qualify ONLY on rental income, not your personal income; super easy.
Bridging Loans
Using your home equity for cash has been a useful way to generate liquidity when you need it! Our clients use this for tuition, renovations, paying down high-interest debt, or personal investments! We offer these loans in Singapore, the U.S., the U.K., and Australia!
Happy Hunting!
www.gmg.asia
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meret118 · 17 days ago
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A new report from Popular Democracy and the Institute for Policy Studies reveals how billionaire investors have become a major driver of the nationwide housing crisis. They summarize in their own words:
Billionaire-backed private equity firms worm their way into different segments of the housing market to extract ever-increasing rents and value from multi-family rental, single-family homes, and mobile home park communities.— Global billionaires purchase billions in U.S. real estate to diversify their asset holdings, driving the creation of luxury housing that functions as “safety deposit boxes in the sky.” Estimates of hidden wealth are as high as $36 trillion globally, with billions parked in U.S. land and housing markets. — Wealthy investors are acquiring property and holding units vacant, so that in many communities the number of vacant units greatly exceeds the number of unhoused people. Nationwide there are 16 million vacant homes: that is, 28 vacant homes for every unhoused person. — Billionaire investors are buying up a large segment of the short-term rental market, preventing local residents from living in these homes, in order to cash in on tourism. These are not small owners with one unit, but corporate owners with multiple properties. — Billionaire investors and corporate landlords are targeting communities of color and low-income residents, in particular, with rent increases, high rates of eviction, and unhealthy living conditions. What’s more, billionaire-owned private equity firms are investing in subsidized housing, enjoying tax breaks and public benefits, while raising rents and evicting low-income tenants from housing they are only required to keep affordable, temporarily.
. . .
Thirty-two percent is the magic threshold, according to research funded by the real estate listing company Zillow. When neighborhoods hit rent rates in excess of 32 percent of neighborhood income, homelessness explodes. And we’re seeing it play out right in front of us in cities across America because a handful of Wall Street billionaires are making a killing.
As the Zillow study notes:
“Across the country, the rent burden already exceeds the 32 percent [of median income] threshold in 100 of the 386 markets included in this analysis….”And wherever housing prices become more than three times annual income, homelessness stalks like the grim reaper.
That Zillow-funded study laid it out:
“This research demonstrates that the homeless population climbs faster when rent affordability — the share of income people spend on rent — crosses certain thresholds. In many areas beyond those thresholds, even modest rent increases can push thousands more Americans into homelessness.”This trend is massive.
. . .
As noted in a Wall Street Journal article titled “Meet Your New Landlord: Wall Street,” in just one suburb (Spring Hill) of Nashville:
“In all of Spring Hill, four firms … own nearly 700 houses … [which] amounts to about 5% of all the houses in town.”
This is the tiniest tip of the iceberg.
“On the first Tuesday of each month,” notes the Journal article about a similar phenomenon in Atlanta, investors “toted duffels stuffed with millions of dollars in cashier’s checks made out in various denominations so they wouldn’t have to interrupt their buying spree with trips to the bank…”
The same thing is happening in cities and suburbs all across America; agents for the billionaire investor goliaths use fine-tuned computer algorithms to sniff out houses they can turn into rental properties, making over-market and unbeatable cash bids often within minutes of a house hitting the market.
. . .
As the Bank of International Settlements summarized in a 2014 retrospective study of the years since the Reagan/Gingrich changes in banking and finance:
“We describe a Pareto frontier along which different levels of risk-taking map into different levels of welfare for the two parties, pitting Main Street against Wall Street. … We also show that financial innovation, asymmetric compensation schemes, concentration in the banking system, and bailout expectations enable or encourage greater risk-taking and allocate greater surplus to Wall Street at the expense of Main Street
.”It’s a fancy way of saying that billionaire-owned big banks and hedge funds have made trillions on housing while you and your community are becoming destitute.
. . .
Turns out it was Blackstone Group, now the world’s largest real estate investor run by a major Trump supporter. At the time they were buying $150 million worth of American houses every week, trying to spend over $10 billion. And that’s just a drop in the overall bucket.
As that new study from Popular Democracy and the Institute for Policy Studies found:
“[Billionaire Stephen Schwarzman’s] Blackstone is the largest corporate landlord in the world, with a vast and diversified real estate portfolio. It owns more than 300,000 residential units across the U.S., has $1 trillion in global assets, and nearly doubled its profits in 2021. “Blackstone owns 149,000 multi-family apartment units; 63,000 single-family homes; 70 mobile home parks with 13,000 lots through their subsidiary Treehouse Communities; and student housing, through American Campus Communities (144,300 beds in 205 properties as of 2022). Blackstone recently acquired 95,000 units of subsidized housing.”
In 2018, corporations and the billionaires that own or run them bought 1 out of every 10 homes sold in America, according to Dezember, noting that:
“Between 2006 and 2016, when the homeownership rate fell to its lowest level in fifty years, the number of renters grew by about a quarter.”
And it’s gotten worse every year since then.
. . .
Warren Buffett, KKR, and The Carlyle Group have all jumped into residential real estate, along with hundreds of smaller investment groups, and the National Home Rental Council has emerged as the industry’s premiere lobbying group, working to block rent control legislation and other efforts to control the industry.
As John Husing, the owner of Economics and Politics Inc., told The Tennessean newspaper:
“What you have are neighborhoods that are essentially unregulated apartment houses. It could be disastrous for the city.”
As Zillow found:
“The areas that are most vulnerable to rising rents, unaffordability, and poverty hold 15 percent of the U.S. population — and 47 percent of people experiencing homelessness.”
. . .
The loss of affordable homes also locks otherwise middle class families out of the traditional way wealth is accumulated — through home ownership: over 61% of all American middle-income family wealth is their home’s equity.
And as families are priced out of ownership and forced to rent, they become more vulnerable to homelessness.
Housing is one of the primary essentials of life. Nobody in America should be without it, and for society to work, housing costs must track incomes in a way that makes housing both available and affordable.
Singapore, Denmark, New Zealand, and parts of Canada have all put limits on billionaire, corporate, and foreign investment in housing, recognizing families’ residences as essential to life rather than purely a commodity. Multiple other countries are having that debate or moving to take similar actions as you read these words.
To address the housing shortage and bring down prices for renters and homeowners alike, the Harris campaign’s plan calls for a historic expansion of the Low-Income Housing Tax Credit (LIHTC) and the first-ever tax incentive for homebuilders who build starter homes sold to first-time homebuyers. Building upon the Biden-Harris administration’s proposed $20 billion innovation fund, the campaign proposes a $40 billion fund that would support local innovations in housing supply solutions, catalyze innovative methods of construction financing, and empower developers and homebuilders to design and build affordable homes.
To cut red tape and bring down housing costs, the plan calls for streamlining permitting processes and reviews, including for transit-oriented development and conversions. The agenda also proposes making certain federal lands eligible to be repurposed for affordable housing development. Collectively, these policy proposals seek to create 3 million homes in the next four years.
The campaign plan cites the Biden-Harris administration’s ongoing actions to support the lowest-income renters, including its actions to expand rental assistance for veterans and other low-income renters, increase housing supply for people experiencing homelessness, enforce fair housing laws, and hold corporate landlords accountable.
Building upon these commitments, the Harris agenda calls upon Congress to pass the “Stop Predatory Investing Act,” which would remove key tax benefits for major investors who acquire large numbers of single-family rental homes (see Memo, 7/17/23), and the “Preventing the Algorithmic Facilitation of Rental Housing Cartels Act,” which would crack down on algorithmic rent-setting software that enables price-fixing among corporate landlords.
To make homeownership attainable, Vice President Harris’s proposal would provide up to $25,000 in downpayment assistance for first-time homebuyers who have paid their rent on time for two years. First-generation homeowners – those whose parents did not own homes – would receive more generous assistance.
Vice President Harris’s economic agenda also includes proposals to lower grocery costs, lower the costs of prescription drugs and relieve medical debt, and cut taxes for workers and families with children. The plan would restore the American Rescue Plan’s expanded Child Tax Credit, which provided up to $3,600 per child for low- and middle-income families for one year before it expired in 2022, and would enact a new $6,000 tax credit for families in the first year after their child is born. These measures to reduce expenses and boost household income would also improve housing security for low-income families, who often face impossible tradeoffs between paying rent and affording food, medical care, and other basic needs.
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Sorry for the length, but I thought this was really important.
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copperbadge · 9 months ago
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I was reading your buying a home tag because I am in the process of buying my first home and just like. How do you not feel every second you are about to make some huge mistake??? I have found something I think I really like but it was way faster than everyone I know who owns a house has said they found something and I don’t know how to tell if I am settling or if I will regret it!
Oh, I mean, I absolutely felt like I was about to make a huge mistake the whole entire time. I just had to do it anyway in the knowledge that my anxiety ramps up about anything uncertain and I have to ignore my brain in favor of the facts.
I know I'm a bit late replying to this, but if you found something you like, take it. You'll just compare everything else you see to the thing you like and the odds of regret are pretty high. The only caveat to that is make sure that you get a good thorough home inspection and you listen to any red flags that pop up (that's the "in favor of the facts" part).
I went for a home with "good bones but bad skin" -- it was an older build and hadn't been renovated, had ugly kitchen cabinets and terrible paint, in part because I knew I wouldn't be able to afford a home that had been renovated more recently. I am actually glad I did; I have friends who bought "flipped" homes and while most of them have still been happy with their purchase, even having to invest extra to fix shit the flippers did shoddily, I do know one or two people who ended up with absolute nightmares. I'd love to renovate my place, but I'd need to save pretty significant cash -- but the only way to do that was to be an owner instead of a renter so that I had equity.
Like yeah I just dropped almost ten grand on a new HVAC and some plumbing repairs, but I was five years into the home and both were things I had already intended to do when I bought. Once that's all paid off I'm going to start putting feelers out about having the kitchen redone and start saving/investing for that.
So, I guess my advice is, acknowledge that you're afraid you're making a mistake, be realistic about seeing any signs you're making a mistake, but also remind yourself that anxiety is designed to keep us safe from getting eaten by tigers, and so we tend to overreact to ambiguity. You'll do great! Good luck to ya.
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besthomeequity · 7 months ago
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What Do You Mean by Cash Out Home Equity?
Opting to cash out your home equity should be a strategically made decision grounded in a solid understanding of your financial health, goals, and the current housing market. Before you leap, consider consulting with a financial advisor, and scrutinize every angle to ascertain that this move aligns with your long-term financial plans.
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posttexasstressdisorder · 19 days ago
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How Trump's billionaires are hijacking affordable housing
Thom Hartmann
October 24, 2024 8:52AM ET
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Republican presidential nominee and former U.S. President Donald Trump attends the 79th annual Alfred E. Smith Memorial Foundation Dinner in New York City, U.S., October 17, 2024. REUTERS/Brendan McDermid
America’s morbidly rich billionaires are at it again, this time screwing the average family’s ability to have decent, affordable housing in their never-ending quest for more, more, more. Canada, New Zealand, Singapore, and Denmark have had enough and done something about it: we should, too.
There are a few things that are essential to “life, liberty, and the pursuit of happiness” that should never be purely left to the marketplace; these are the most important sectors where government intervention, regulation, and even subsidy are not just appropriate but essential. Housing is at the top of that list.
A few days ago I noted how, since the Reagan Revolution, the cost of housing has exploded in America, relative to working class income.
When my dad bought his home in the 1950s, for example, the median price of a single-family house was around 2.2 times the median American family income. Today the St. Louis Fed says the median house sells for $417,700 while the median American income is $40,480—a ratio of more than 10 to 1 between housing costs and annual income.
ALSO READ: He’s mentally ill:' NY laughs ahead of Trump's Madison Square Garden rally
In other words, housing is about five times more expensive (relative to income) than it was in the 1950s.
And now we’ve surged past a new tipping point, causing the homelessness that’s plagued America’s cities since George W. Bush’s deregulation-driven housing- and stock-market crash in 2008, exacerbated by Trump’s bungling America’s pandemic response.
And the principal cause of both that crash and today’s crisis of homelessness and housing affordability has one, single, primary cause: billionaires treating housing as an investment commodity.
A new report from Popular Democracy and the Institute for Policy Studies reveals how billionaire investors have become a major driver of the nationwide housing crisis. They summarize in their own words:
— Billionaire-backed private equity firms worm their way into different segments of the housing market to extract ever-increasing rents and value from multi-family rental, single-family homes, and mobile home park communities. — Global billionaires purchase billions in U.S. real estate to diversify their asset holdings, driving the creation of luxury housing that functions as “safety deposit boxes in the sky.” Estimates of hidden wealth are as high as $36 trillion globally, with billions parked in U.S. land and housing markets. — Wealthy investors are acquiring property and holding units vacant, so that in many communities the number of vacant units greatly exceeds the number of unhoused people. Nationwide there are 16 million vacant homes: that is, 28 vacant homes for every unhoused person. — Billionaire investors are buying up a large segment of the short-term rental market, preventing local residents from living in these homes, in order to cash in on tourism. These are not small owners with one unit, but corporate owners with multiple properties. — Billionaire investors and corporate landlords are targeting communities of color and low-income residents, in particular, with rent increases, high rates of eviction, and unhealthy living conditions. What’s more, billionaire-owned private equity firms are investing in subsidized housing, enjoying tax breaks and public benefits, while raising rents and evicting low-income tenants from housing they are only required to keep affordable, temporarily. (Emphasis theirs.)
It seems that everywhere you look in America you see the tragedy of the homelessness these billionaires are causing. Rarely, though, do you hear about the role of Wall Street and its billionaires in causing it.
The math, however, is irrefutable.
Thirty-two percent is the magic threshold, according to research funded by the real estate listing company Zillow. When neighborhoods hit rent rates in excess of 32 percent of neighborhood income, homelessness explodes. And we’re seeing it play out right in front of us in cities across America because a handful of Wall Street billionaires are making a killing.
As the Zillow study notes:
“Across the country, the rent burden already exceeds the 32 percent [of median income] threshold in 100 of the 386 markets included in this analysis….”
And wherever housing prices become more than three times annual income, homelessness stalks like the grim reaper. That Zillow-funded study laid it out:
“This research demonstrates that the homeless population climbs faster when rent affordability — the share of income people spend on rent — crosses certain thresholds. In many areas beyond those thresholds, even modest rent increases can push thousands more Americans into homelessness.”
This trend is massive.
As noted in a Wall Street Journal article titled “Meet Your New Landlord: Wall Street,” in just one suburb (Spring Hill) of Nashville:
“In all of Spring Hill, four firms … own nearly 700 houses … [which] amounts to about 5% of all the houses in town.”
This is the tiniest tip of the iceberg.
“On the first Tuesday of each month,” notes the Journal article about a similar phenomenon in Atlanta, investors “toted duffels stuffed with millions of dollars in cashier’s checks made out in various denominations so they wouldn’t have to interrupt their buying spree with trips to the bank…”
The same thing is happening in cities and suburbs all across America; agents for the billionaire investor goliaths use fine-tuned computer algorithms to sniff out houses they can turn into rental properties, making over-market and unbeatable cash bids often within minutes of a house hitting the market.
After stripping neighborhoods of homes young families can afford to buy, billionaires then begin raising rents to extract as much cash as they can from local working class communities.
In the Nashville suburb of Spring Hill, the vice-mayor, Bruce Hull, told the Journal you used to be able to rent “a three bedroom, two bath house for $1,000 a month.” Today, the Journal notes:
“The average rent for 148 single-family homes in Spring Hill owned by the big four [Wall Street billionaire investor] landlords was about $1,773 a month…”
As the Bank of International Settlements summarized in a 2014 retrospective study of the years since the Reagan/Gingrich changes in banking and finance:
“We describe a Pareto frontier along which different levels of risk-taking map into different levels of welfare for the two parties, pitting Main Street against Wall Street. … We also show that financial innovation, asymmetric compensation schemes, concentration in the banking system, and bailout expectations enable or encourage greater risk-taking and allocate greater surplus to Wall Street at the expense of Main Street.”
It’s a fancy way of saying that billionaire-owned big banks and hedge funds have made trillions on housing while you and your community are becoming destitute.
Ryan Dezember, in his book Underwater: How Our American Dream of Homeownership Became a Nightmare, describes the story of a family trying to buy a home in Phoenix. Every time they entered a bid, they were outbid instantly, the price rising over and over, until finally the family’s father threw in the towel.
“Jacobs was bewildered,” writes Dezember. “Who was this aggressive bidder?”
Turns out it was Blackstone Group, now the world’s largest real estate investor run by a major Trump supporter. At the time they were buying $150 million worth of American houses every week, trying to spend over $10 billion. And that’s just a drop in the overall bucket.
As that new study from Popular Democracy and the Institute for Policy Studies found:
“[Billionaire Stephen Schwarzman’s] Blackstone is the largest corporate landlord in the world, with a vast and diversified real estate portfolio. It owns more than 300,000 residential units across the U.S., has $1 trillion in global assets, and nearly doubled its profits in 2021. “Blackstone owns 149,000 multi-family apartment units; 63,000 single-family homes; 70 mobile home parks with 13,000 lots through their subsidiary Treehouse Communities; and student housing, through American Campus Communities (144,300 beds in 205 properties as of 2022). Blackstone recently acquired 95,000 units of subsidized housing.”
In 2018, corporations and the billionaires that own or run them bought 1 out of every 10 homes sold in America, according to Dezember, noting that:
“Between 2006 and 2016, when the homeownership rate fell to its lowest level in fifty years, the number of renters grew by about a quarter.”
And it’s gotten worse every year since then.
This all really took off around a decade ago following the Bush Crash, when Morgan Stanley published a 2011 report titled “The Rentership Society,” arguing that snapping up houses and renting them back to people who otherwise would have wanted to buy them could be the newest and hottest investment opportunity for Wall Street’s billionaires and their funds.
Turns out, Morgan Stanley was right. Warren Buffett, KKR, and The Carlyle Group have all jumped into residential real estate, along with hundreds of smaller investment groups, and the National Home Rental Council has emerged as the industry’s premiere lobbying group, working to block rent control legislation and other efforts to control the industry.
As John Husing, the owner of Economics and Politics Inc., told The Tennessean newspaper:
“What you have are neighborhoods that are essentially unregulated apartment houses. It could be disastrous for the city.”
As Zillow found:
“The areas that are most vulnerable to rising rents, unaffordability, and poverty hold 15 percent of the U.S. population — and 47 percent of people experiencing homelessness.”
The loss of affordable homes also locks otherwise middle class families out of the traditional way wealth is accumulated — through home ownership: over 61% of all American middle-income family wealth is their home’s equity.
And as families are priced out of ownership and forced to rent, they become more vulnerable to homelessness.
Housing is one of the primary essentials of life. Nobody in America should be without it, and for society to work, housing costs must track incomes in a way that makes housing both available and affordable.
Singapore, Denmark, New Zealand, and parts of Canada have all put limits on billionaire, corporate, and foreign investment in housing, recognizing families’ residences as essential to life rather than purely a commodity. Multiple other countries are having that debate or moving to take similar actions as you read these words.
America should, too.
ALSO READ: Not even ‘Fox and Friends’ can hide Trump’s dementia
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thatbadadvice · 2 years ago
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Help! My Girlfriend Bought Me A Million Dollar House And Raised My Kids And All I Got Was This Million Dollar House And Someone To Raise My Kids, When Is It Finally Going To Be My Turn To Get A Break??????
Pay Dirt, Slate, 17 April 2023:
Dear Pay Dirt, My longterm girlfriend and I disagree about whether a $30,000 inheritance left to her by her great-aunt should be “her” money or “our” money. She wants to spend a large part (almost a third!) of it on expensive supplies for her hobby. I think that we should save most of it and use some of it on a vacation since we both find traveling extremely romantic. My argument is: 1) I don’t care about her hobby, but we’ll both enjoy a trip abroad; 2) we’ve lived on only my (admittedly low, since it’s academia) income for over a decade, so according to her own rule about entitlement to “her” windfall, shouldn’t she technically have been entitled to none of my wages all these years? Her argument is: 1) she had to put aside her hobby for many years to raise our children (it’s not a safe art form for young kids to be around) and yearns to return to it; 2) she paid entirely in cash for our $950k house at the beginning of our partnership (though my income pays the property taxes and maintenance costs), therefore she alleges that we haven’t actually been living on solely my income because I’ve been saving on rent all these years. I feel resentful of the double standard about control over finances and hurt that she would rather prioritize her own joy over our shared joy. She feels impatient to reconnect with her hobby and hurt that her contributions to our lifestyle are unseen. How do we reconcile our different viewpoints? How should the money be allocated? Is there something that we’re missing? —I’m About to Glass(Blow) a Fuse
Dear About to (Glass)Blow a Fuse,
I hope you don't mind that I corrected your very clever parenthetical sign-off! You're understandably dealing with a lot of hurt right now at the hands of the cruel and self-absorbed girlfriend who bought you a million-dollar home and abandoned her beloved hobby to raise your children, so I totally get why a brilliant, overworked, and under-appreciated academic genius such as yourself would fuck up something so incredibly simple and obvious, you poor thing. Really speaks to the distress you're in as the victim of this woman's sordid scheme to steal every ounce of joy from your life by experiencing some of her own after decades of managing your household for you for free.
Great relationships are built on the exactly equal division of all resources, and it sounds like your girlfriend has trouble grasping this because she seems to believe that the home you live in and the time she has invested raising your children for you have value, when of course they do not. The only thing that has value in this world is cash money, which is why we call it money. If parenting were valuable, you'd be able to trade it on the stock market! And what was your girlfriend going to do, not live in a house? These are things she'd have done with her life anyway, and they don't get to count toward her contribution to the household just because she did them for and with you instead of expressly and specifically pursuing her art. Whereas who knows what you could have done with your life if you hadn't been locked into a free house and a partner dedicating herself full-time to keeping your children alive for you?
Now, after all these years of being nothing but a worthless freeloader whom you support out of the generous goodness of your kind heart, your girlfriend has finally acquired something of value, and she wants to keep an entire third of it for herself? To do something that doesn't directly benefit, enrich, or entertain you personally? That's not equity, and it's certainly no way to repay you for periodically writing checks to the plumber. Isn't it about time you finally got something out of all of this for your trouble?
What benefit is there for you in having a partner who enjoys the sweet satisfaction of creative fulfillment after years of yearning to express herself? What kind of weirdo wants their girlfriend to have her own interests? And what kind of ungrateful hussy doesn't jump to spend thousands of her own money on a romantic vacation with someone who actively resents even entertaining the possibility of the idea of her doing something that makes her artistic spirit sing?
The balance sheet of this relationship is indeed all out of whack, and it's too bad that it's taken this long for your girlfriend to see just how uneven your bargain has been. If we're going to get technical about what has "value" in a relationship — and it does seem like your girlfriend is an inveterate bean-counter in the worst way around this stuff — the best way to reconcile your mutual account, as it were, is to present your girlfriend with an itemized bill for all the services you have provided her over the years, such as allowing her to buy you a home, permitting her to forego a wage-earning career, and gifting her with the opportunity to abandon her favorite hobby. That should pretty swiftly put everything you're "missing" in stark relief, and solve the question of how she should allocate her money in the future.
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