After renting this and similar homes out for five to seven years, Praxis will sell, hoping for significant appreciation.
My guess is the price/rent ratio only works in very outlying (less desirable) Bay Area locales. And if these companies are paying cash, it seems like there is a high lost opportunity cost? I wouldn't want to rely on "significant appreciation" over the next 5 to 7 years.
I wouldn't want to rely on "significant appreciation" over the next 5 to 7 years.
Do not underestimate the lengths that the government (local, state and federal) and the central banking nexus will go to to ensure inflated property values. Our president has openly declared that he will put a floor under housing prices, and the Fed has openly stated that their goal is to create the wealth effect via "home equity" to get consumer spending up again (which is supposed to be a panacea for our unemployment situation).
a service for the real estate advertisers disguised as journalism.
I liked the headline about "rushing," i.e. not taking the time to think things through. The investors are presumably looking for an inflation hedge, the investment companies are making money providing one, but no one knows where prices will go.
It looks to me like a typical Wall Street game. Wipe from the market low priced inventory, created greed, lift prices, and spread more greed, then when profit rich 25-35%, big players will dump 1000’s of homes back on market living unaware last time buyers with losses.
By the way, stock market appear to me like is ready for another sharp decline.