House next door sold for $100K over list

[rosarugosa]

(changing the subject)...

I'm just watching 60 Minutes and it's about the crazy real estate market. There are companies that are buying tons of houses, particularly in the Sun Belt--and a Redfin realtor said that 30% of her houses are snapped up by large corporate investors who offer cash immediately, wave the inspection, and then they put in on the market as a rental, with an inflated rent price.

It's shutting out first time homebuyers. No one can compete with these huge companies who sweep in, put in $10-15k to freshen it up and then it's off the market for people who actually want to buy a house.

I had read an in-depth article about that recently; I forget where. I thought it was really creepy and I'm so glad I'm not a first-time homebuyer in this market.

[iris lilies]

Well something positive about these huge corporate companies who do this bad stuff is that they’re making more rental properties available, right?


Do buyers have inherent right to own property? Don’t people who rent have a need to for a place to live as well?


I don’t think this is happening in the city of St. Louis though, at least not around here in my immediate neighborhoods because we would’ve heard about it. It might be because the housing sock is too old and unpredictable around here.

[sweetana3]

There is a great documentary by The Fifth Estate on the Canadian rental market reposted on Youtube. I think this is the site: https://www.youtube.com/watch?v=LSKOfmrHfQ4

Not just an issue for home buyers but for renters in almost all categories. We have companies here in Indy who advertise and "train" people to buy up properties and either flip or rent them. It does not take big corporations. They have a terrible reputation. Then don't get me started on the seemingly fake nonprofit companies located elsewhere who buy up whole apartment complexes and then rake in the rent and let them deteriorate. One company owes $1.3 million in water bills that the tenants paid for in their rent. Just hit the news big time. Indiana has poor laws for tenants and for those trying to help tenants from predatory landlords.

[Teacher Terry]

I think 60 minutes said the country is short 4 million housing units because enough aren’t being built. It’s another factor in driving up rents. I knew when I divorced the only way I could afford to stay here was to buy. Plus I hate renting.

[jp1]

We went to an open house yesterday in a development just on the other side of the hill behind us. Townhouse the same size as ours, same age, with the same view, etc. The only real difference is that teh bathrooms in that one have all been nicely redone. They are asking $150k more than what we paid 1 1/2 years ago. It will be interesting to see what they get for it.

[happystuff]

I think 60 minutes said the country is short 4 million housing units because enough aren’t being built. It’s another factor in driving up rents. I knew when I divorced the only way I could afford to stay here was to buy. Plus I hate renting.

I would love to rent, but rents are totally outrageous in my area. Simple two bedroom apartment will run over $1500. - nothing included! That's more than a paycheck! If we ever lost this house, we would probably look for a mobile home or used rv or something.

[catherine]

I think 60 minutes said the country is short 4 million housing units because enough aren’t being built. It’s another factor in driving up rents. I knew when I divorced the only way I could afford to stay here was to buy. Plus I hate renting.

Yeah, they did say that and that's scary enough as it is..

As for ILs question:

Do buyers have inherent right to own property? Don’t people who rent have a need to for a place to live as well?

Sure, but it's taking a huge chunk of the transactions out of the hands of the individual buyer/seller and putting it in the hands of people with far more leverage, and far more ability to manipulate the market and push prices (both rents and purchase) higher. The other part of the 60 minutes piece was that the rents are being raised to the point where the tenants can't afford to stay in their own apartments anymore.

[ToomuchStuff]

Do buyers have inherent right to own property? Don’t people who rent have a need to for a place to live as well?


I don’t think this is happening in the city of St. Louis though, at least not around here in my immediate neighborhoods because we would’ve heard about it. It might be because the housing sock is too old and unpredictable around here.

No, buyers have a right to life, liberty and the PURSUIT of happiness (pursuing home ownership, is not the same thing).
Certainly renters have a need for a place to live. This is why so many people are pushing for things such as little homes, etc.

I am not sure how you would hear about it or not. I know a Chinese investment company, bought our former mayors house, that a bunch of us helped build his garage. The only reason I do know that, is because of a mutual friend. While we get a bunch of cards from investors and flippers, I have no idea about the money behind them (seen local billboards, advertising money for flippers).

[pinkytoe]

I believe they said on the 60 Minutes show that Austin rents had gone up 40% in one year. so the greed factor needs to be mentioned in there somewhere too. Rising prices have certainly put a stop to our ability to relocate. As the values rise, so do the taxes. The Canadian CEO of Tricor was very smug in his assessment about how millennials want the freedom of renting so appreciate their rentals.

[ToomuchStuff]

I believe they said on the 60 Minutes show that Austin rents had gone up 40% in one year. so the greed factor needs to be mentioned in there somewhere too. Rising prices have certainly put a stop to our ability to relocate. As the values rise, so do the taxes. The Canadian CEO of Tricor was very smug in his assessment about how millennials want the freedom of renting so appreciate their rentals.

Besides the greed factor, did they mention the rent moratorium?
How many people have raised rents, to make up for renters that either haven't paid, or will never pay back rent, during the pandemic?
My friend who sold his three streets of duplexes, had three people in them that didn't pay. All the duplexes need updating (one hadn't been since 1979). Some investor offered him a good amount and then wanted his company to still manage them. One of the non paying renters, paid the back rent the day the moratorium came off, another was evicted, and my understanding is the third died of a heart attack, when he realized it was due.
What is "greed" and what is wanting a bigger egg to support the ones who have to still pay the property taxes, mortgage, etc. with no income, in the future?