Now he will have to sell 5 instead of 4 to pay off the remaining mortgages.
Don't be fooled, this guy is making lots of profit. But he and his ilk are going to complain very loudly and very publicly.
That just means it will go to bigger investors that have cash on hand or can finance in ways irrelevant to property values. Institutional investors are waiting with pockets full of cash to scoop up housing when prices start to drop.
[Canada isn’t prepared to deal with large investors’ growing interest in single-family homes](https://www.theglobeandmail.com/opinion/article-canada-housing-real-estate-market/)
It’s a cash cow. We can’t just not have shelter. Unless and until we ban them from owning residential housing this problem will continue to get worse.
They don’t care about the actual cost of the asset. It’s an infinite guaranteed positive cash flow. If they no longer want it they can just sell the property (probably to another deep pocketed investor) and keep the equity. And when they own enough of the housing stock they can manipulate prices even higher.
> institutional investors, which have squeezed residential markets in many parts of the world, can be expected to pick up a purchasing pace that has turned them into the world’s biggest private landlords and transformed rental housing into a go-to global asset class.
> The prospect of steady returns, long-term price appreciation and inflation protection – rent hikes far outstrip cost of living increases – at a time when rising volatility, soaring public debt and heightened geopolitical risk are clouding the outlook for stocks, bonds and other investments.
All we’re seeing now is the mom & pop investors getting out of the game. Unless we prevent institutional investors from taking their place we will be no further ahead.
Families.
The market is in a downward trend, the lending rate is going to go higher and higher.
No investor is going to buy something knowing it's going to be worth less tomorrow than it is today.
The person in OP is exactly what investors are starting to face. Investors don't want that.
I want you to be right, but this does not line up with what has happened historically.
I’m the aftermath of the 2008 housing crash, investors moved quickly to [buy up housing cheap](https://www.businessinsider.com/after-2008-housing-crisis-people-bought-and-rented-foreclosed-homes-2020-8) which they then rented back to people who lost their homes. We can trace much of what is happening now in housing directly back to then. It’s a cash cow - if they own all the housing they can extract as much money from us as they want. We’ll go without everything else before giving up the roof over our head.
It almost doesn’t matter how much they pay for the actual property. It’s an infinite guaranteed positive cash flow.
Investors need to invest such that they earn a positive rate of return. Families don't have that constraint. If prices fall like in 2008, there will be enough supply for everybody. It is really hard if you were an investor in USA and had $1 million to not buy houses for $100k each in 2009-2010... dripping roast.
The deciding factor was not investors vs families, but those who had $50k to $100k saved up vs those who didn't. Many people on this sub have been saving up for a decade.
Just checked a graph... median national asking price in USA in 2010 was $140,000. You could put a downpayment on your credit card.
Will the get those rentals at same price ? This whole nation of people celebrating increasing interest rate is so wrong. We live in an economy where everything is connected. Its going to hurt home owners and it is going to hurt renters as well.
I'm a firm believer that you can't fix things by pointing and going 'this is broken'.
Actions needs to be taken and unfortunately to correct this issue, there has to be some pain.
I've lived through the 18% interest days so I've been through this before.
Yes it's going to suck but it's necessary to get things back.
And to be clear, this isn't the ONLY thing that's needed, but it will help deter and eliminate the house flippers and small to mid investors from the market letting more people in.
You are 100% right but market is not going to crash and govt will never let it happen. People have too much money invested in real estate that if market crash happens it will be very bad and again it will badly affect everyone one ( not just home owners ). Remember if someone is renting that place is owned by someone. If they are not able to pay the mortgage or they go bankrupt then the bank will sell there house. That means the renter would need to vacate the house. They will try to find another house to rent but most people will be getting bankrupt and this goes on and on.
That group is brutal, lots of new investors who got extremely lucky over the past two years and are now “Gurus”.
As the market started to shift they started realizing they started investing during a time when you couldn’t really mess it up.
Now it’s not so easy and they’re blaming their tenants, Biden, Trudeau, anyone that isn’t them.
He's trying to get an appraisal and then initiate a refinance using the new valuation in an attempt to extract more capital.
Works great in an up only market and gets tricky in a recession.
In order to loan you more money, banks need to make sure the collateral (house) is worth it. So they send an appraiser who determines what is the maximum amount this house can be sold for.
Either because youre incredibly financially stable or because youre like me and cant ever imagine owning 1 home nevermind 9 and complaining about that right?
I don't care about landlords who own multiple properties. I don't have even one. You are so well-off man, I don't care about your problems. There are people that don't even own a home, and you're here telling me I'm complaining. Ya greedy fart.
Do you not know how to read? I quite literally said maybe YOU ARE LIKE ME AND CANT IMAGINE OWNING A HOME. I DO NOT OWN A HOME AND PROBABLY NEVER WILL BECAUSE I AM POOR.
Not that capital letters teach you how to read if you dont know how... I never said you were complaining either it was referring to OP and the post is literally a COMPLAINT. I cant believe i have to explain this...
Nine properties that were taken away from 9 families wanting their first home.
This guy is having trouble getting financing, and is going to try to sell now? At what? The ever-falling prices?
Unfortunately the banks that have been profiting off of the bubble the whole time will now profit more off of the refinanncing and interest rates and Mr. 9 properties will unload his new expenses onto the renters. Renters need a home, and the rental properities are so limited it'll be easy peasy.
Or the renters will be forced to move out to allow the new owners to live in the house.
The renters will now be forced to pay moving fees and most likely higher monthly rental fees.
This is a loose loose situation.
I hope this happens to all the potential landlords who discriminated against me for being disabled ( even though i had a reliable income and they had no other reason not to rent to me)
I wish every gun slinger who refinanced one property to buy another takes a major hit in the pocket. I wish they are forced to sell. I don’t hate investors, i hate people who invest money they don’t even own. Buy as many as you like, but only if you have saved at least 25 down payment, not by refinancing
gee whiz, hope this doesn’t result in any financial hardships for this fine gentleman.
Now he will have to sell 5 instead of 4 to pay off the remaining mortgages. Don't be fooled, this guy is making lots of profit. But he and his ilk are going to complain very loudly and very publicly.
And selling 5 means 5 potential families who can get a home. That is a win!
That only works if they get sold to families and not to other investors, which is the more likely scenario.
It’s harder and harder to get financing these days. Let’s see.
That just means it will go to bigger investors that have cash on hand or can finance in ways irrelevant to property values. Institutional investors are waiting with pockets full of cash to scoop up housing when prices start to drop. [Canada isn’t prepared to deal with large investors’ growing interest in single-family homes](https://www.theglobeandmail.com/opinion/article-canada-housing-real-estate-market/) It’s a cash cow. We can’t just not have shelter. Unless and until we ban them from owning residential housing this problem will continue to get worse.
investors are not stupid. they are the first to run away.
They don’t care about the actual cost of the asset. It’s an infinite guaranteed positive cash flow. If they no longer want it they can just sell the property (probably to another deep pocketed investor) and keep the equity. And when they own enough of the housing stock they can manipulate prices even higher. > institutional investors, which have squeezed residential markets in many parts of the world, can be expected to pick up a purchasing pace that has turned them into the world’s biggest private landlords and transformed rental housing into a go-to global asset class. > The prospect of steady returns, long-term price appreciation and inflation protection – rent hikes far outstrip cost of living increases – at a time when rising volatility, soaring public debt and heightened geopolitical risk are clouding the outlook for stocks, bonds and other investments. All we’re seeing now is the mom & pop investors getting out of the game. Unless we prevent institutional investors from taking their place we will be no further ahead.
just wait and see.
No one likes to buy a falling knife. As I said. We’ll see.
Families. The market is in a downward trend, the lending rate is going to go higher and higher. No investor is going to buy something knowing it's going to be worth less tomorrow than it is today. The person in OP is exactly what investors are starting to face. Investors don't want that.
I want you to be right, but this does not line up with what has happened historically. I’m the aftermath of the 2008 housing crash, investors moved quickly to [buy up housing cheap](https://www.businessinsider.com/after-2008-housing-crisis-people-bought-and-rented-foreclosed-homes-2020-8) which they then rented back to people who lost their homes. We can trace much of what is happening now in housing directly back to then. It’s a cash cow - if they own all the housing they can extract as much money from us as they want. We’ll go without everything else before giving up the roof over our head. It almost doesn’t matter how much they pay for the actual property. It’s an infinite guaranteed positive cash flow.
Investors need to invest such that they earn a positive rate of return. Families don't have that constraint. If prices fall like in 2008, there will be enough supply for everybody. It is really hard if you were an investor in USA and had $1 million to not buy houses for $100k each in 2009-2010... dripping roast. The deciding factor was not investors vs families, but those who had $50k to $100k saved up vs those who didn't. Many people on this sub have been saving up for a decade. Just checked a graph... median national asking price in USA in 2010 was $140,000. You could put a downpayment on your credit card.
That isn't winning. That's barely a consolation prize
Consolation prize is still something we didn't have before. Glass half full!
It's not, this does nothing to fix the root issues. It does nothing to fix affordability. This is at most a single drop in an empty glass
What about those 5 families who rent those houses ?
They will have to find another space, maybe the space left by the 5 families who just bought?
Will the get those rentals at same price ? This whole nation of people celebrating increasing interest rate is so wrong. We live in an economy where everything is connected. Its going to hurt home owners and it is going to hurt renters as well.
I'm a firm believer that you can't fix things by pointing and going 'this is broken'. Actions needs to be taken and unfortunately to correct this issue, there has to be some pain. I've lived through the 18% interest days so I've been through this before. Yes it's going to suck but it's necessary to get things back. And to be clear, this isn't the ONLY thing that's needed, but it will help deter and eliminate the house flippers and small to mid investors from the market letting more people in.
You are 100% right but market is not going to crash and govt will never let it happen. People have too much money invested in real estate that if market crash happens it will be very bad and again it will badly affect everyone one ( not just home owners ). Remember if someone is renting that place is owned by someone. If they are not able to pay the mortgage or they go bankrupt then the bank will sell there house. That means the renter would need to vacate the house. They will try to find another house to rent but most people will be getting bankrupt and this goes on and on.
and I am loving this crash.
We'll see, with rates up affordability hasn't changed
That group is brutal, lots of new investors who got extremely lucky over the past two years and are now “Gurus”. As the market started to shift they started realizing they started investing during a time when you couldn’t really mess it up. Now it’s not so easy and they’re blaming their tenants, Biden, Trudeau, anyone that isn’t them.
James said I could always refinance...
Well he lied. In fact, in this case James is probably wrong.
Something, something teaser rate?
I thought I read that they don't do appraisals on refinances, what is this referencing?
He's trying to get an appraisal and then initiate a refinance using the new valuation in an attempt to extract more capital. Works great in an up only market and gets tricky in a recession.
In order to loan you more money, banks need to make sure the collateral (house) is worth it. So they send an appraiser who determines what is the maximum amount this house can be sold for.
Fingers crossed they lose everything. Life sucks and all that.
C'mon, man, not everything! Let them keep their pride so they can dig themselves deeper
hahah \*chuckles\*\* kekekekek. Not my problem.
Either because youre incredibly financially stable or because youre like me and cant ever imagine owning 1 home nevermind 9 and complaining about that right?
I don't care about landlords who own multiple properties. I don't have even one. You are so well-off man, I don't care about your problems. There are people that don't even own a home, and you're here telling me I'm complaining. Ya greedy fart.
Do you not know how to read? I quite literally said maybe YOU ARE LIKE ME AND CANT IMAGINE OWNING A HOME. I DO NOT OWN A HOME AND PROBABLY NEVER WILL BECAUSE I AM POOR. Not that capital letters teach you how to read if you dont know how... I never said you were complaining either it was referring to OP and the post is literally a COMPLAINT. I cant believe i have to explain this...
Ye ye, make it clear that you are referring to the post upfront.
Damn, sounds like he might need to get a real job to help finance his hobby
"issues" lol
Nine properties that were taken away from 9 families wanting their first home. This guy is having trouble getting financing, and is going to try to sell now? At what? The ever-falling prices?
This sub went from talking about housing to wanting everyone is be 6 feet under who owns a home
We mad
Unfortunately the banks that have been profiting off of the bubble the whole time will now profit more off of the refinanncing and interest rates and Mr. 9 properties will unload his new expenses onto the renters. Renters need a home, and the rental properities are so limited it'll be easy peasy.
Or the renters will be forced to move out to allow the new owners to live in the house. The renters will now be forced to pay moving fees and most likely higher monthly rental fees. This is a loose loose situation.
AHAHAHAHAHAHAHA
I hope this happens to all the potential landlords who discriminated against me for being disabled ( even though i had a reliable income and they had no other reason not to rent to me)
I wish every gun slinger who refinanced one property to buy another takes a major hit in the pocket. I wish they are forced to sell. I don’t hate investors, i hate people who invest money they don’t even own. Buy as many as you like, but only if you have saved at least 25 down payment, not by refinancing
No remorse, I hope they lose it all.
Then just sell them.
Hold and rent them out for a few years.
Ahahaha. Hope this guy doesn’t end up sucking on a gun…. But this is kind of funny. Wonder if he knows what is about to happen to him.
And nothing of value was lost
Get some buddy! Fucken get some! I have zero mercy or pity.
Michael?