Blackstone buys hundreds of homes to rent out
... The bulk purchases are a result of mass volumes of vacant properties due to foreclosures that are offered at ‘fire-sale prices.’ Blackstone’s purchases of the single-family homes are expected to boost home prices by clearing out distressed properties to create rental housing.
However, there is a risk that the bulk purchases could pose a challenge to first-time buyers as well as shift neighborhoods once occupied by homeowners rather than renters.
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We've talked about this before but I just thought of something. Lots of CUPs and HOAs prohibit either commercial renting or multiple ownership or both. Wait until Blackstone starts running afoul of those rules.
9 comments:
An American Tradition!
To promote this disposition to exchange lands, which they have to spare and we want, for necessaries, which we have to spare and they want, we shall push our trading uses, and be glad to see the good and influential individuals among them run in debt, because we observe that when these debts get beyond what the individuals can pay, they become willing to lop them off by a cession of lands.
Glad you're back, dawg.
Dawg, Those "Fire Sale" prices are only enjoyed by the well connected. And as to the HOA's, if they buy enough units in a development they can control the board. If not, they will do whatever they feel like until the HOA gets tough. Some nasty fights ahead, I may actually cheer for an HOA to win!
When my parents were young, Major Medical became the benefit which was a determining factor in choosing an employer, but now that's become available to all by government decree.
Will housing become the benefit everyone is looking for in future employment, and will it follow a similar path?
Note: and "edit" feature would be nice...
Kill the HOAs.
This could be the training ground for the next revolutionaries.
Once big-corporate joins with individual property owners who are sick of their HOA, they can gain a majority and re-write the rules or dis-band the HOA altogether.
Once successful, the government will be next.
Here's a couple for you Rob:
http://www.hoocoodanode.org/node/17073#comment-2688382
http://www.hoocoodanode.org/node/17073#comment-2688384
They've begun to devour each other...
Hey, Max. Thanks for the support. We are still "trading thin" here but viewership is climbing.
Tom. I see all kinds of scenarios. At first the HOAs might just be glad of seeing the dues paid in full. Then however if there is any meddling with the board it had better be a complete coup or the lash back will be severe. Eventually Blackstone plans of jacking rents and then if they really are buying 50/week they are setting themselves up for Santa Monica type rent controls. Finally if they do break any covenants then they may be faced with all the remaining individual owners undercutting them on rent prices. And don't forget the cash starved city. A couple thousand houses with questionable tax basis' hidden in bulk purchase agreements is ripe for reassessment, business liscencing, etc.
It would be a disaster if Blackstone makes money on this.
Cinco-X, LOL!
I told you it would happen.
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Several years ago, I raised the possibility of converting some SM condos to apartments (someone else coined the word "repartments" I think).
But the prices never fell far enough to make it work economically. Condos in SM still sell for at least twice the price of a similar apartment unit.
It's interesting that the biggest RE bust in our lifetimes was not sufficient to burst the condo bubble there.
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