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0 pointscdchn2y ago0 comments

>What's the issue with them buying houses as investments, as long as they're being rented out?

Because it prevents people from owning and now have to be permanent renters because of somebody's greedy rent seeking behavior.

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gruez2y ago

Sounds like the actual problem is that landlords can engage in "greedy rent seeking behavior" at all. Allowing people to opt out, but only if they can afford a 6 figure downpayment and keep 7 figure amounts of their wealth parked in a single non-productive asset that's highly correlated with their job prospects is an imperfect solution to say the least. Everyone deserve protections from "greedy rent seeking behavior", not just the people who are in a position to buy.

Repulsion95132y ago

How does that happen when all the houses are being purchased as investments to rent out (or not, as often happens)?

Spivak2y ago

Good lord man what first time homebuyer is putting down $100k down payments? I just bought a nice house in a well established in demand neighborhood and my total cost down was less than $30k. No assistance program, no special deal, definitely not a cheap house oof this market.

Are you trying to buy 2M+ houses?

mauvehaus2y ago

Was your <$30K down a <20% down payment and are you paying PMI as a result? I totally understand that %20 down is a big pile of money to conjure up, but PMI wouldn't have been cheap for us had we been unable to conjure it.

Our cost to close was under $100k with a 20% down payment, but still substantial. And yes, we were first time homebuyers. Obviously we did not buy anything approaching 2M.

With closing costs of $10k-15k, 100k doesn't even break a half million at 20% down. That's (sadly) not even table stakes in e.g. most parts of Boston.

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