Скачать или смотреть Should Congress Stop Wall Street from Buying All the Homes? - 5 Things to Know - #2 - May 10th, 2024

Gary Brode of Deep Knowledge Investing and Robb Fahrion of Flying V Group discuss the 5 Things to Know in Investing This Week: The That’s Not What I Said Issue

-How many single-family homes are Wall Street investors buying? Should Congress do something?

DKI Summary:

DKI Intern, Andrew Brown, notes that there is increasing concern about big Wall Street firms buying more single-family homes. Home ownership is a core part of the American Dream. While many people like the flexibility and capital preservation of renting, home ownership has created long-term personal and financial stability for millions of families. If big firms with unmatched access to capital buy up all the housing stock, can they turn us all into renters? Lawmakers in many States as well as the US Congress are considering bans on corporate purchase of single-family homes, forcing companies to sell their existing inventory, or imposing additional taxes on large corporations’ home ownership portfolios. Do you think the government should intervene?

DKI Takeaway:

This is a heated issue with strong emotions attached. Looking at the chart from Freddie Mac, you can see that large corporate buyer home purchases are a much smaller share of the market than the 40%+ some have claimed. DKI thinks this issue has nuance. We’ve recently been shedding light on the struggles young people encounter when they try to buy a home. Wall Street purchase of housing inventory pushes up prices and causes those young people to stay renters for longer. No individual in their 20s or 30s is going to be able to outbid the big firms with near-unlimited access to capital. It’s easy to look at the situation and say the government should step in to protect the ability of young people to own instead of rent. But forcing companies to liquidate their assets could establish a risky precedent. In addition, we’re accustomed to thinking about this from the point of view of the buyer. Now, imagine you own a home and want to sell and pay off your mortgage. Should the government tell you that it’s illegal to sell to the highest bidder? Typically, when the government puts its thumb on the scale for “good reasons”, we get unpleasant unintended consequences. In general, DKI favors free markets over governmental interference, but this is a tough issue, and we don’t know the right answer. What do you think?

Your links:

This week's written version of the 5 Things with graphs:
https://deepknowledgeinvesting.com/we...

Deep Knowledge Investing Subscription Page: https://deepknowledgeinvesting.com/we...

Flying V Group: https://www.flyingvgroup.com/

Ryan Sullivan: Off The Beaten Path Financial

LinkedIn:   / ryan-sullivan-pe  

Website: https://www.obpfinancial.com/

#deepknowledge #deepknowledgeinvesting #investingnews #garybrode #robbfahrion #flyingvgroup #dki #investmentresearch #investmentknowledge #investmentstrategy #investingstrategies #advisor #homes #firsthomeowners #investing #wallstreet #blackrock #cash #realestatehousingmarket #realestate