Large investors make the full exit: Big rental investors like Blackstone are now selling properties
If you are one of the 8 to 10 million American families who were kicked out of their home between 2005 and about 2012, you may want to forego this first part.
So the big banks were allowed to prey on homeowners, and when it all came tumbling down our government made it easier for companies like Blackstone to buy the homes than it did the people who were thrown out to recover.
Now the company is selling the homes at a healthy profit, and they have their own finance arm to make sure they can get all the profit and fees, even if you default. Then they would have to buy the house at a discount again. Darn the luck.
Big Wall Street investors stopped buying real estate in large quantities back in late 2014. In many cases big investors had front row seats at banks and were able to buy in bulk and for incredibly low prices not offered to the public. This crowding out of course has caused two major things to unfold: inventory to dwindle and a push up in prices for regular families looking to buy. For the first time in history many things happened in the housing market including nationally falling prices but also a large interest from Wall Street in single family homes. Now with prices near previous peak levels many of these large investors are making the full exit by offering to sell the homes to current tenants, for of course a modest increase. Those bailouts that were geared to helping the public actually created a system that has slammed the homeownership rate lower and has now jacked home prices up once again. Large investors are now making their final play by cashing out.
...”
Milking it from every angle. This is why over the last decade the U.S. has become a renter nation. If another hit comes about, we can expect investors to line up to pickup these foreclosures and repeat the cycle. Prices and rents have surged well beyond income levels:
http://www.doctorhousingbubble.com/large-investors-make-market-exit-blackstone-selling-properties/
And
Are renters of today worse off than their parents? Examining rental and household income growth going back to 1960.
http://www.doctorhousingbubble.com/renters-worse-off-today-rents-income-lease-rent-prices/
