patrick.net

Billions in Bogus Bonuses need to be laundered into housing for migrant workers, and fast.

Everything makes sense in the magical word of Ben Bernake.

"Today's investors are mostly buying with the intention of holding on to the homes and renting them out. "

They will be stuck with that property for years to come cuz once interest rates spike the values will head down.

Everybody wants to be a winner and the wildebeest riverboat gamblers always move in lockstep - this time the bet is on landlords! What can go wrong?

donjumpsuit says

I just read today that they think there will be a HUGE demand, that outpaces supply for rentals. They base this on a large percentage of Generation Y'ers who will leave home and have the need for rentals.

I am glad they think that. A large percentage of the Gen Y'ers won't be leaving home, because they can get a room for free.

Another percent will be rooming with each other, perhaps two to a room to keep costs down. This doesn't build demand, it removes it.

The last break in the logic comes in terms of jobs and salaries. The plutocracy has driven down wages, yet still thinks they can purchase homes to rent to those whom they have marginalized.

Rent/Mortgage is typically a persons largest monthly expense. Since the wages and opportunities of those in their 20's has been driven to drivel, how do those who rent think they are going to see a huge market for their income for those in this age group?

Sometimes I think that people don't think.

I wouldn't count on millenials driving a housing or rental demand.

Its a different mentality, in part fueled by larger houses than ever. While you and I may not want to live this way, carving out 1500 sq ft of living space from your parents 3500 sq ft McMansion is a pretty damn sweet alternative to signing a committing lease and paying half your take home to rent a 650 sq ft apartment.

More money to spend on vacations, xbox games, and enjoying life in general. Kids, family, etc can wait until your in your 40's.

And no, I'm not joking. That is to some extent the way things are now.

When I couldn't afford my mortgage anymore (long, dumb story on my part), when trying to be proactive with the banks, I simply told them in three months I simply would not have enough money to pay the full amount.

The mortgage payment might as well have been a billion dollars. You can't pay what you don't have.

Same applies to rent. Go ahead and double it. Triple it. Quadrillion it! I guess I move.

Rents don't matter to the big boys. All of it was bought and paid for in full with stolen money. Just cover the taxes and a manager and they're golden. The plebes just can't comprehend the new MO.

You sound like Roberta trying to promote his real estate acumen.

http://www.dallasfed.org/assets/documents/institute/annual/2011/annual11b.pdf

Your beloved Fed even says that Zimbabwe rapidly printed money. I agree that the government redistributed and destroyed up productive farmland, but read pages 5-7 of the Dallas Fed's reort.

Also, you never disputed my claim that you're a rich, malevolent slumlord.

Anti-gun

dodgerfanjohn says

Kids, family, etc can wait until your in your 40's.

There's a lot of good reasons not to start having kids in your 40's. I started on my wolf pack in my early twenties.

donjumpsuit says

I am glad they think that. A large percentage of the Gen Y'ers won't be leaving home, because they can get a room for free.

Another percent will be rooming with each other, perhaps two to a room to keep costs down. This doesn't build demand, it removes it

My 26 year old brother: 18-21, free room at the parents' house. 22-24, $250/month room at my aunt's house. Last year, at 25, moved in with two friends and splitting a $900/month apartment (so, $300/per?). At this rate, he'll be renting his own place by 40, and a first/only time buyer at 60.

But hey, by then we'll be working until 85 and living to 100, so . . . perspective, man, perspective. Take your time; do it right.

Don't worry, when the hedgies own most of the US housing stock, they will engage in epic price fixing schemes. Who cares if vacancy rates are 20%+, when you have 25 people crammed into a 2/1 you have a lot of income to make rent with! Prepare for the glorious new Amerika!

robertoaribas says

ey likely won't rise until the economy is much stronger, and by then, employment and wages will be much better. f

Which won't happen anytime soon, or ever, for all we know. Just like in Europe we can languish in high unemployment forever.

zzyzzx says

robertoaribas says

ey likely won't rise until the economy is much stronger, and by then, employment and wages will be much better. f

Which won't happen anytime soon, or ever, for all we know. Just like in Europe we can languish in high unemployment forever.

I would be interested to see this quarter's numbers. Last quarter slowed to a crawl and this quarter has the payroll tax increase, tax increase for the wealthy and the govt cuts.

But having said that, in the new magical Bernake economy, the Dow might just spike and housing might go through the roof when it appears we have officialy entered a recession or contraction again. You never know.

Funniest thing I've read all week:

Mr. Pintar said he has no plans to slow down. In the past four months, the professional landlord hired 75 new employees. He also looked into buying his own commercial office building for his growing operation, he said. "We figured why pay rent to someone if you don't have to?"

...Classic! Strange thing for someone to say who's business depends on renters!

SubOink says

hedge against inflation?

the argument that homes are a hedge against inflation, comes in when labor can demand more as was the case during high inflation period of the 70s and mass strikes with unions demanding higher pay. But in todays economic landscape, unions and non-unions, that cannot happen given global competition. Therefore no long true. At best commodities are your best answer.

Thanks. Makes sense. I have such a hard time getting in here after this crazy run up...

Where can I invest my $0.04?

1913 $1.00 = 2012 $0.04, -96% debasement averaging -3.2% per year.

I see the housing porn is back in full production.

I love these housing articles pumping housing recovery. I have also noticed when they are promoting the housing recovery you can't never leave a comment on these stories. They don't want negative publicity