Blackrock Buying up homes

[Phillip McKraken]

What does everyone think about Blackrock buying up homes?

 

[Cre8ive]

What a great way to reduce employee flight to other competitors. Give them a good salary. Give them a full boat health care plan, and then give them a house. Cradle to grave. As you drive by and shoot, just wave.

 

[Rusty Student]

Fuck Blackrock and the rest of 'em

 

[Hoppo]

Seems like they want a strong base of real assets, in preparation for a substantial drop in equities. Commercial real estate has become pretty risky, so residential real estate it is. It's fairly resistant to inflation pressures, and barring a perfect storm financial system meltdown it will hold value pretty well.It suggests Blackrock and some of these other corporate investors are expecting inflation to be very high for at least the next 5 years.

 

[PawPower1981]

I’m not sure how widespread this is. I’m surrounded by new neighborhoods in FL and even though most people are from out of the area they are buyers not renters

 

[America 1st]

Seems like they want a strong base of real assets, in preparation for a substantial drop in equities. Commercial real estate has become pretty risky, so residential real estate it is. It's fairly resistant to inflation pressures, and barring a perfect storm financial system meltdown it will hold value pretty well.It suggests Blackrock and some of these other corporate investors are expecting inflation to be very high for at least the next 5 years.

Ya doesn't seem real surprising with everything going on.

Is this supposed to be shocking OP?

 

[BigBucnNole]

If they had 5 billion invested in purchasing homes, that's 20k homes at 250k a pop. The US needs over a million homes built just to keep with population growth.

 

[America 1st]

If they had 5 billion invested in purchasing homes, that's 20k homes at 250k a pop. The US needs over a million homes built just to keep with population growth.

#labor&manufacturingshortage

 

[Phillip McKraken]

Ya doesn't seem real surprising with everything going on.

Is this supposed to be shocking OP?

I have never heard of an asset manager buying up a bunch of individual homes. Then add in the elevated prices.

 

[GarnetPild]

Tim Pool discussed this yesterday. Blackrock & the like are certainly buying homes, probably for the reasons stated in the OP. Lots of people with money are also putting it into homes, because inflation is bad and getting worse. Add in some flight from liberal shitholes and you get the crazy ass real estate market we see today.

 

[America 1st]

I have never heard of an asset manager buying up a bunch of individual homes. Then add in the elevated prices.

I'm pretty sure it's been going on for a while now.

I think I remember it being cover in dancing before the election.

 

[Cre8ive]

Taxes. Religion. Sex. Homes. Death. Homes.

 

[Cre8ive]

If they had 5 billion invested in purchasing homes, that's 20k homes at 250k a pop. The US needs over a million homes built just to keep with population growth.

Black Rock is hedging a bet in that they have calculated the rate at which they belive new, affordable homes will be built by America's homebuilders. Based on a single dynamic that could justify this type of investment is that they grossly underestimated the ability of home builders to put a house up faster than telephone poles. I know. My brother is a major home builder and my other brother is a home inspector.

I think Black Rock has screwed themselves by violating a cardinal law in investing. NEVER speculate a bet on a industry you do not totally and completely understand. And in this case in think Black Rock will get their asses kicked by the thousands of existing home builders in the US. And why? Simple. Would you buy a "used home" in a battered segment of a metro area or would you rather buy a BRAND NEW home for a lower per square footage price?

Right you are Don Pardo! Give them that brand new home! By the time Black Rock realizes that home inspectors are like the Gestaopo they will have had their ass handed to them on a silver platter. The only good news for them is that they can burn billions in cash and still meet their monthly bills.

The real losers are the investors at the bottom of the Black Rock food chain.

 

[TTUcamper]

I have no doubt they are part of the currency reset that is an eventuality.

They definitely aren't going to keep currency so they have to offload it somewhere. Property ownership will not reset but the dollar and all fiat currencies are doomed.

 

[America 1st]

I have no doubt they are part of the currency reset that is an eventuality.

They definitely aren't going to keep currency so they have to offload it somewhere. Property ownership will not reset but the dollar and all fiat currencies are doomed.

I think you'll see a US digital asset that will be backed by dollars.

That way they will stop printing dollars for the most part (except for rare exceptions) and instead create more of the digit currency.

Their essentially going to rewrite how economies think of currency on top of the old system IYAM.

That way they'll get double the power and double the "printing ability". The dollar is still very secure and very much in demand. That's why we're seeing all this last minute printing before they start the new system (because they can easily afford to print them) 5% inflation isn't shit to these crooks.

 

[America 1st]

Black Rock is hedging a bet in that they have calculated the rate at which they belive new, affordable homes will be built by America's homebuilders. Based on a single dynamic that could justify this type of investment is that they grossly underestimated the ability of home builders to put house up faster that telephone poles. I know. My brother is a major home builder and my other brother is a home inspector.

I think Black Rock has screwed themselves by violating a cardinal law in investing. NEVER speculate a bet on a industry you do not totally and completely understand. And is this case Black Rock will get their asses kicked by the thousands of existing home builders in the US. And why? Simple. Would you buy a "used home" in a battered segment of a metro area or would you rather buy a BRAND NEW home for a lower per square footage price?

Right you are Don Pardo! Give them that brand new home! By the time Black Rock realizes that home inspectors are like the Gestaopo they will have had their ass handed to them on a silver platter. The only good news for them is that they can burn billions in cash and still meet their monthly bills.

The real losers are the investors at the bottom of the Black Rock food chain.

We bought new in April for this exact reason.

New was cheaper and... New. Crazy times we live in.

They'll never be able to build them quick enough.

 

[CDDP]

Smart move to be buying up real assets. With real interest rates deeply negative you will get hammered not owning things that do well with high inflation.

 

[QuanChi]

Seems like they want a strong base of real assets, in preparation for a substantial drop in equities. Commercial real estate has become pretty risky, so residential real estate it is. It's fairly resistant to inflation pressures, and barring a perfect storm financial system meltdown it will hold value pretty well.It suggests Blackrock and some of these other corporate investors are expecting inflation to be very high for at least the next 5 years.

Yes

 

[QuanChi]

I brought this up about a month ago, but i was dismissed as a schizo.

 

[ChicagoFats]

I think you'll see a US digital asset that will be backed by dollars.

That way they will stop printing dollars for the most part (except for rare exceptions) and instead create more of the digit currency.

Their essentially going to rewrite how economies think of currency on top of the old system IYAM.

That way they'll get double the power and double the "printing ability". The dollar is still very secure and very much in demand. That's why we're seeing all this last minute printing before they start the new system (because they can easily afford to print them) 5% inflation isn't shit to these crooks.

How will a digital currency stop them from printing dollars?
How would it be different than Bitcoin?

 

[BigBucnNole]

I think you'll see a US digital asset that will be backed by dollars.

That way they will stop printing dollars for the most part (except for rare exceptions) and instead create more of the digit currency.

Their essentially going to rewrite how economies think of currency on top of the old system IYAM.

That way they'll get double the power and double the "printing ability". The dollar is still very secure and very much in demand. That's why we're seeing all this last minute printing before they start the new system (because they can easily afford to print them) 5% inflation isn't shit to these crooks.

The way I understand it is that the per unit cost on a single apartment is as higher or higher than the median price of a home. They are buying these homes for rental income. Millennials and likely gen z’ers aren’t buying homes. But they don’t want to pay apartment prices.

IYAM, multi family is rapidly proving itself out of the market.

 

[ChicagoFats]

I also think it’s an inflation play. It’s coming (or is already here) and you better own something. Not exactly sure what, but real estate has to be up there for top choices.

 

[BigBucnNole]

I also think it’s an inflation play. It’s coming (or is already here) and you better own something. Not exactly sure what, but real estate has to be up there for top choices.

I don’t se inflation coming yet. But it’s never a bad idea to buy physical assets.

 

[ChicagoFats]

The way I understand it is that the per unit cost on a single apartment is as higher or higher than the median price of a home. They are buying these homes for rental income. Millennials and likely gen z’ers aren’t buying homes. But they don’t want to pay apartment prices.

IYAM, multi family is rapidly proving itself out of the market.

What do you mean by proving itself out the market?

it’s a little early to predict the demise of multi-family housing if that’s what you are saying.

 

[ChicagoFats]

I don’t se inflation coming yet. But it’s never a bad idea to buy physical assets.

It’s in the rear view mirror dude. Meaning it’s already here. If you don’t see it you are blind.
5% was the “official” number released this morning for CPI

 

[TopHook]

 

[America 1st]

How will a digital currency stop them from printing dollars?
How would it be different than Bitcoin?

They won't stop printing dollar. They still could and will. They just will use the process much more sparingly.

Bitcoin isn't anything like the new US crypto will be.

The US crypto will be designed for economic activity (currency) and will have more created as needed.

Bitcoin is most accurately described as a store of value asset if you're going to define it by asset classes. It can't be used as currency because it's deflationary and too volatile.

That's if Bitcoin is even legal in a few years. With the current course and narrative it will likely become illegal in the next few years (pubs and Dims both want it gone and see the national security risks).

Back to the point though is that they'll use the new US digital asset the same way they do now with the printing presses but they'll be able to do it to a 2nd degree now (digital assets backed by "printed" dollars).

 

[America 1st]

The way I understand it is that the per unit cost on a single apartment is as higher or higher than the median price of a home. They are buying these homes for rental income. Millennials and likely gen z’ers aren’t buying homes. But they don’t want to pay apartment prices.

IYAM, multi family is rapidly proving itself out of the market.

I think you'll see them relocating demographics under the narrative like "40 acres and a mule".

Smart folks will fill in the gaps...

 

[BigBucnNole]

It’s in the rear view mirror dude. Meaning it’s already here. If you don’t see it you are blind.
5% was the “official” number released this morning for CPI

No it's not. Output collapsed and material receded. Recent price level increase is tied to boost in output that we haven't seen in 15 months. It'll settle down. It's core inflation, so it's your inputs. Inputs inflate and deflate tied to supply and demand. There isn't a supply glut right now. No shock to commodities means it'll smooth out.

 

[BigBucnNole]

I think you'll see them relocating demographics under the narrative like "40 acres and a mule".

Smart folks will fill in the gaps...

You are going to see a swing into lifetime renters. After '08 happened, they kept telling me there was this shadow inventory that was going to come online and drive down the price of homes sold. Never happened because millennials had no credit. And now that they have kids, and have taken on more debt, they still aren't really buying homes.

High cost of education basically swapped a house for a college degree. Average home buyer now is a 730 credit and 30 to 35% down. That is not a typical demographic. Will be interesting to see how this ultimately plays out because homes + pensions + SS used to be the real retirement. And all three of those are basically gone.

 

[America 1st]

You are going to see a swing into lifetime renters. After '08 happened, they kept telling me there was this shadow inventory that was going to come online and drive down the price of homes sold. Never happened because millennials had no credit. And now that they have kids, and have taken on more debt, they still aren't really buying homes.

High cost of education basically swapped a house for a college degree.

Correct.

The real assets are always the target.

08 was no different.

 

[ChicagoFats]

They won't stop printing dollar. They still could and will. They just will use the process much more sparingly.

Bitcoin isn't anything like the new US crypto will be.

The US crypto will be designed for economic activity (currency) and will have more created as needed.

Bitcoin is most accurately described as a store of value asset if you're going to define it by asset classes. It can't be used as currency because it's deflationary and too volatile.

That's if Bitcoin is even legal in a few years. With the current course and narrative it will likely become illegal in the next few years (pubs and Dims both want it gone and see the national security risks).

Back to the point though is that they'll use the new US digital asset the same way they do now with the printing presses but they'll be able to do it to a 2nd degree now (digital assets backed by "printed" dollars).

I don’t see it being any different. why would a digital currency cause them to use the Process more sparingly? It’s the Treasury. They already create dollars at the push a button. They will never give up that power. A digital currency will not prevent them in any way shape or form from printing more currency.

Bitcoin will not become illegal. The government has given its blessings to do business in Bitcoin. They have even provided the framework in classifying it as a security and demanding that you pay taxes on it. almost all major financial institutions in the US have a Bitcoin operation. There are futures contracts written by the CBOE and the CME, the countries largest commodity exchanges.

Your argument that Bitcoin is used by terrorists doesn’t hold water. They also use apple phones, but I don’t see anyone trying to outlaw those.

I’d be utterly shocked if the US tried to make Bitcoin illegal. Regulate, yes. Outlaw, no.

I don’t know what price Bitcoin should be. But I know it has utility, and it will until the cryptography is broken. So, that tells me it will be around.

maybe I’m wrong, but at least we are both on record on where we stand.

 

[ChicagoFats]

No it's not. Output collapsed and material receded. Recent price level increase is tied to boost in output that we haven't seen in 15 months. It'll settle down. It's core inflation, so it's your inputs. Inputs inflate and deflate tied to supply and demand. There isn't a supply glut right now. No shock to commodities means it'll smooth out.

Ok. Place your bets now. I am.

not sure how you can say there is no inflation when it’s literally every headline out there. The only question to me is how much. But you do you

 

[ChicagoFats]

You are going to see a swing into lifetime renters. After '08 happened, they kept telling me there was this shadow inventory that was going to come online and drive down the price of homes sold. Never happened because millennials had no credit. And now that they have kids, and have taken on more debt, they still aren't really buying homes.

High cost of education basically swapped a house for a college degree. Average home buyer now is a 730 credit and 30 to 35% down. That is not a typical demographic. Will be interesting to see how this ultimately plays out because homes + pensions + SS used to be the real retirement. And all three of those are basically gone.

 

[America 1st]

I don’t see it being any different. why would a digital currency cause them to use the Process more sparingly? It’s the Treasury. They already create dollars at the push a button. They will never give up that power. A digital currency will not prevent them in any way shape or form from printing more currency.

Bitcoin will not become illegal. The government has given its blessings to do business in Bitcoin. They have even provided the framework in classifying it as a security and demanding that you pay taxes on it. almost all major financial institutions in the US have a Bitcoin operation. There are futures contracts written by the CBOE and the CME, the countries largest commodity exchanges.

Your argument that Bitcoin is used by terrorists doesn’t hold water. They also use apple phones, but I don’t see anyone trying to outlaw those.

I’d be utterly shocked if the US tried to make Bitcoin illegal. Regulate, yes. Outlaw, no.

I don’t know what price Bitcoin should be. But I know it has utility, and it will until the cryptography is broken. So, that tells me it will be around.

maybe I’m wrong, but at least we are both on record on where we stand.

It really has nothing to do with Bitcoin in this circumstance. I'll gladly debate you on all those points in that thread.

I think you're missing my point here because we're in agreement that they won't quit printing dollars. They'll just have a whole new asset and currency they can print soon so they'll "print" more of the digital currency than dollars moving forward.

 

[Viking]

Why can’t there be more Deadwood?

 

[America 1st]

@ChicagoFats

To put this another way it's kinda like the IMF's SDR but the US is going to do that on their own dollars.

The central banking system is going to massively expand because of cryptos not come to an end.

 

[BigBucnNole]

Ok. Place your bets now. I am.

not sure how you can say there is no inflation when it’s literally every headline out there. The only question to me is how much. But you do you

Bet? Do you know the last time we had real inflation is was tied to OPEC and oil shocks? Plus shit tax policy? What real shocks do we have now?

 

[ChicagoFats]

Bet? Do you know the last time we had real inflation is was tied to OPEC and oil shocks? Plus shit tax policy? What real shocks do we have now?

For starters $X trillion dollars of stimulus.

not sure what the exact number is, but make no mistake that money was created out of thin air

 

[BigBucnNole]

For starters $X trillion dollars of stimulus.

not sure what the exact number is, but make no mistake that money was created out of thin air

Do you think the markets play any role?