Big investors are pouring unprecedented amounts of money into real estate hard hit by the housing crash, bringing those moribund markets back to life but raising the prospect of another Wall Street-fueled bubble that won’t be sustainable.This is phenomenally dangerous and destructive.
Drawn by the prospect of double-figure profit margins on rents and the resale of homes whose prices plummeted in the crash, hedge funds, Wall Street investors and other institutions are crowding out individual home buyers.
More at the leap.
1) Wall Street is doing this because they are borrowing cheap money short term and taking
assets that are illiquid and hard to move.
2) While Apartment buildings are easily managed, SFR Houses are hard to manage,
it's why the large property companies don't invest in these. Entities like Southern
Corp run big facilities.
3) This creates a whole slew of absentee landlords with no interest in the communities.
4) It locks families out of the market for houses.
5) It's Obama, Bernanke and the Bankers making war on a fundamental element of
middle class wealth.
6) Wall street couldn't make money managing mortgages, how can these fools possibly make money managing actual houses?
7) When this implodes as it inevitably will, the Taxpayers will be made to bail this out.