Does neither political party in America do anything about corporations and foreigners buying up housing because they'd find a backdoor anyway?

[OlNate]

We refinanced when the pandemic brought mortgage rates here down to around 2.5%. We locked that in but due to the increase in the value of the property, we have to pay more for insurance. We also went ahead and added extra to our payment to go towards principle so we pay the same or right around it but hopefully will be paid off sooner.

Interesting, your insurance went up... we haven't had that happen yet, outside of the usual early increase. We have an epic insurance company though... we had a fire the first year we lived here, had around 75k worth of damages. Not only did the insurance not go up, they waived the deductible and suggested work that wasn't related to the fire. We'll never leave them... hehe

Taxes going up is my concern. We pay a crazy amount of property tax, more than they pay in the city, and there's a subdivision coming to the land behind us (a true heart breaker, what's there now is a mini horse sanctuary, our view is going to change drastically, my wife insisted we install a cedar hedge in protest.... lol) that will no doubt drive up our taxes, and that one that's going to sting.

 

[roguenuke]

Interesting, your insurance went up... we haven't had that happen yet, outside of the usual early increase. We have an epic insurance company though... we had a fire the first year we lived here, had around 75k worth of damages. Not only did the insurance not go up, they waived the deductible and suggested work that wasn't related to the fire. We'll never leave them... hehe

Taxes going up is my concern. We pay a crazy amount of property tax, more than they pay in the city, and there's a subdivision coming to the land behind us (a true heart breaker, what's there now is a mini horse sanctuary, our view is going to change drastically, my wife insisted we install a cedar hedge in protest.... lol) that will no doubt drive up our taxes, and that one that's going to sting.

Our taxes went up too.

 

[Borg Refinery]

States in America are passing bills to ban foreigners buying land: https://www.politico.com/news/2024/04/03/state-laws-china-land-buying-00150030

Most notably Texas.

They ban foreign land ownership in China and India, you can't run a business either. While I think that's going too far, it does prevent predatory multinational corps from buying up loads of land - which they are doing in America, in some cases buying up masses of water rights too and denying whole towns water. I think a fair balance needs to be struck between preventing predatory multinationals - and billionaires - homegrown and foreign - from buying up too much land, while also not becoming too Communist in approach and preventing foreign land ownership at all.

It's causing a housing crisis. It's not just in America, look at this, a corporate lawyer and junior investment banker can't afford a house in London:



That's ridiculous. If they can't earn enough to afford a house, who can? And the problem is even more acute here in America.

 

[98166]

This isn’t even civilized. I mean again, 10 years from now the average rent could be 3k if things continue at this pace and 1/4 of American Metro Areas will have average home prices of over 1 million
Foreigners and Corporations buying up houses is a major reason why this is happening,
It's in Los Angeles.

 

[LetsGoBrandon]

This is a huge problem and 1 reason why the cost to rent or get a mortgage is basically the same today. Foreigners (mainly from China) and Corporations buying up homes and now even trailer parks and letting them (often) sit empty, or do a major renovation to them which drives up rents for everyone where now in America, the average rent for apartments is around 1500 per month. This includes 2 plus bedrooms but still.
Is there no crackdown because they know that if Corporations were officially banned from buying more than a few houses they would just find say some guy, to buy it for the corporation instead?

Rents spike as large corporate investors buy mobile home parks

The parks, which for decades were mostly owned and operated like small businesses, have proven an attractive investment for private equity firms and large real estate companies.

www.pbs.org

The biggest single issue driving up the costs of mortgages is not the corporations buying up homes. They are just taking advantage. The real issue is the same that led to the mortgage market crisis in 2006, when they pushed banks and mortgage companies to provide loans to low income families who did not qualify on credit ratings and points. Those loans were guaranteed by quasi government mortgage giants Fannie Mae and Freddie Mac. Too many of those loans went south That is where the inflated prices came from. As for high rent prices, you can blame well intentioned but misguided rent control laws in many areas in the 1970s on. The landlords with the monopolies simply request approval for raising the rent on a regular basis and have enough politicians in their pockets to get the raises approved. Same actually occurs with Obamacare.

 

[Noodlegawd]

It costs us less to stay in our current home than it would to move. We are happy with where we live and we like our home, though we would like something smaller.

How do you figure? Can you flesh this out for us? If the housing market is inflated, it should be inflated for your house too. So if you sell it and buy a smaller house you should have money to pocket, unless the difference is less than the cost to move.

 

[Noodlegawd]

This isn’t even civilized. I mean again, 10 years from now the average rent could be 3k if things continue at this pace and 1/4 of American Metro Areas will have average home prices of over 1 million
Foreigners and Corporations buying up houses is a major reason why this is happening,
It's in Los Angeles.

"Average rent' is meaningless, when you can buy a 1000 square foot home for under $100k in many places.

 

[EnigmaO01]

As with a lot of things, Them political contributions grease the Screw-Us wheels.
As I preach> Many older people in politics have this thought> "What the hell, by the time that the rubes catch on, I'll be long gone or dead"
Stop electing older people. Sad but sometimes true. Wish it wasn't.

Ha Ha I don't think it's just "older" politicians. Our system is corrupted with corporate money and it affects politicians of all ages. In our system politicians need money to run and get re-elected. Guess who has the deepest pockets?

Got an axe to grinds against us older folks?

 

[ALiberalModerate]

"Average rent' is meaningless, when you can buy a 1000 square foot home for under $100k in many places.

Let me fix this for you:

"Average rent' is meaningless, when you can buy a 1000 square foot home for under $100k in many places where there are few jobs or opportunity.

 

[ALiberalModerate]

States in America are passing bills to ban foreigners buying land: https://www.politico.com/news/2024/04/03/state-laws-china-land-buying-00150030

Most notably Texas.

They ban foreign land ownership in China and India, you can't run a business either. While I think that's going too far, it does prevent predatory multinational corps from buying up loads of land - which they are doing in America, in some cases buying up masses of water rights too and denying whole towns water. I think a fair balance needs to be struck between preventing predatory multinationals - and billionaires - homegrown and foreign - from buying up too much land, while also not becoming too Communist in approach and preventing foreign land ownership at all.

It's causing a housing crisis. It's not just in America, look at this, a corporate lawyer and junior investment banker can't afford a house in London:



That's ridiculous. If they can't earn enough to afford a house, who can? And the problem is even more acute here in America.

We actually have the most affordable housing of any wealthy country on earth: Affordable Housing by Country 2024 (worldpopulationreview.com)

As bad as housing affordability in the United States is, it is much worse in Canada, Western Europe, and wealthier parts of Asia.

 

[Objective Voice]

I am very surprised that this topic has received so little air time by any major politician.

Actually, Pres. Biden has talked about this somewhat, and his Administration is trying to find multiple ways to bring down the cost of housing and rents as this Fact Sheet outlines.

That said, it's hard to tell an entity it can't purchase land/real estate which is the backbone to any economy. This practice of "house hoarding" isn't necessarily new. It's just happening with non-bank entities, i.e., hedge funds. (Personally, I think it's just an end-round on the banks who are heavily involved in the real estate game anyway. The big banks are definitely involved.)

 

[TU Curmudgeon]

This is a huge problem and 1 reason why the cost to rent or get a mortgage is basically the same today. Foreigners (mainly from China) and Corporations buying up homes and now even trailer parks and letting them (often) sit empty, or do a major renovation to them which drives up rents for everyone where now in America, the average rent for apartments is around 1500 per month. This includes 2 plus bedrooms but still.
Is there no crackdown because they know that if Corporations were officially banned from buying more than a few houses they would just find say some guy, to buy it for the corporation instead?

Rents spike as large corporate investors buy mobile home parks

The parks, which for decades were mostly owned and operated like small businesses, have proven an attractive investment for private equity firms and large real estate companies.

www.pbs.org

I see that you are concerned about "Foreigners (mainly from China) and Corporations buying up homes and now even trailer parks" and that is quite understandable.

However, I do have a question for you and that is

Who is selling the "homes and now even trailer parks" that you are so concerned about "Foreigners (mainly from China) and Corporations buying"?​

You don't suppose that it would be Americans do you?