Home Buying

**bandc** · 05-21-2021, 03:13 AM

My wife and I have been in hair pulling process of trying to buy a home as our little family grows. Whether it's the right thing to do at all is a whole topic in and of itself but there is a major issue that I'm slowly becoming hip to.

I don't know if this is a new thing or not but apparently, major foreign investment companies (many of them Chinese) use shell companies here in the U.S. to buy up homes at 10-15% over list with straight cash. I've read many anecdotal stories online of how people notice 2 or 3 houses in their general vicinity are now pretty much rental properties.

I have no idea as to what scale this is occurring, but with the real estate market being what it is right now, I'm sure this plays some meaningful role in the ridiculous prices.

The question is what to do about it. I know many believe that the market will eventually correct itself and a bubble burst will bring prices down, but in my opinion it still doesn't correct the issue of foreign parties infiltrating our real estate markets.

For those who don't think the government should step in and try to stop this, how do you see this playing out?

Sent from my SM-N986U using Tapatalk

**blah3** · 05-21-2021, 08:01 AM

Originally Posted by bandc

My wife and I have been in hair pulling process of trying to buy a home as our little family grows. Whether it's the right thing to do at all is a while topic in and of itself but there is a major issue that I'm slowly becoming hip to.

I don't know if this is a new thing or not but apparently, major foreign investment companies (many of them Chinese) use shell companies here in the U.S. to buy up homes at 10-15% over list with straight cash. I've read many anecdotal stories online of how people notice 2 or 3 houses in their general vicinity are now pretty much reveal properties.

I have no idea as to what scale this is occurring, but with the real estate market being what it is right, I'm sure this plays some meaningful role in the ridiculous prices.

The question is what to do about it. I know many believe that the market will eventually correct itself and a bubble burst will bring prices down, but in my opinion it still doesn't correct the issue of foreign parties infiltrating our real estate markets.

For those who don't think the government should step in and try to stop this, how do you see this playing out?

Sent from my SM-N986U using Tapatalk

Market is burning hot right now, so cash is king. Plus no inspections. Apparently there are companies out there that will loan you money to make it look like a cash offer, so that is one route you could persue if you want to buy and make your offer look better.

**jonboy79** · 05-21-2021, 08:27 AM

I think the key to buying in this market is to take your time.
What I mean by that, is that this is NOT a market for a short term purchase, so unless you plan to be in a house for 10 years or more, probably best to rent and sit it out.
If someone is bidding a property up on you, move on to another, don’t fight and overpay.

Everyone will end up overpaying to some degree, but if it’s a “lifetime” home, it won’t end up making a difference in the end. The people that will get hurt, is the people that find out they can’t actually afford it, or need to move quickly, or outgrow it quickly... so be deliberate in your choice!

Sent from my iPhone using Tapatalk

**Vlad the lad** · 05-21-2021, 08:50 AM

Housing is like a roller coaster. It goes up and down. We looked at our house in 2000 but my wife was pretty, so we waited 2 years. The neighborhood went from 250-350 in two years. We got in. 6 years later, it peaked at 700. Over then next few years, it dropped as low as 350. It is probably in the 600-700 range again. Like someone else said, if you don’t plan to be there at least 10 years, now is not a good time to buy.

**BustOfPallas** · 05-21-2021, 09:51 AM

Originally Posted by Vlad the lad

Housing is like a roller coaster. It goes up and down. We looked at our house in 2000 but my wife was pretty, so we waited 2 years. The neighborhood went from 250-350 in two years. We got in. 6 years later, it peaked at 700. Over then next few years, it dropped as low as 350. It is probably in the 600-700 range again. Like someone else said, if you don’t plan to be there at least 10 years, now is not a good time to buy.

That's when things started to explode. Don't let paranoia get to you bandc. There is plenty of good housing out there. As someone else stated the market is just hot right now. Do your research and look around. Where do want to live? You have any ideas? If you get the neighborhood right you can put down roots and have something to trade when you want to size up. I outgrew my first house in 5 years. Amazing how having just kids makes your realize your home/cars no longer work. Really forces the issue.

**Terpsfan82** · 05-21-2021, 01:02 PM

Originally Posted by jonboy79

I think the key to buying in this market is to take your time.
What I mean by that, is that this is NOT a market for a short term purchase, so unless you plan to be in a house for 10 years or more, probably best to rent and sit it out.
If someone is bidding a property up on you, move on to another, don’t fight and overpay.

Everyone will end up overpaying to some degree, but if it’s a “lifetime” home, it won’t end up making a difference in the end. The people that will get hurt, is the people that find out they can’t actually afford it, or need to move quickly, or outgrow it quickly... so be deliberate in your choice!

Sent from my iPhone using Tapatalk

**Terpsfan82** · 05-21-2021, 01:06 PM

Originally Posted by bandc

My wife and I have been in hair pulling process of trying to buy a home as our little family grows. Whether it's the right thing to do at all is a whole topic in and of itself but there is a major issue that I'm slowly becoming hip to.

I don't know if this is a new thing or not but apparently, major foreign investment companies (many of them Chinese) use shell companies here in the U.S. to buy up homes at 10-15% over list with straight cash. I've read many anecdotal stories online of how people notice 2 or 3 houses in their general vicinity are now pretty much rental properties.

I have no idea as to what scale this is occurring, but with the real estate market being what it is right now, I'm sure this plays some meaningful role in the ridiculous prices.

The question is what to do about it. I know many believe that the market will eventually correct itself and a bubble burst will bring prices down, but in my opinion it still doesn't correct the issue of foreign parties infiltrating our real estate markets.

For those who don't think the government should step in and try to stop this, how do you see this playing out?

Sent from my SM-N986U using Tapatalk

The Japanese started buying huge tracts of land in the U.S. back in the mid eighties. So foreign "investment" is nothing new. Seemed like it was more covert back then. They undoubtedly impacted the market, but I was young and dumb when I bought my first house at 25. I wasn't concerned with principle only payments or other methods that could have shaved years off the loan. I figured I would be in the house 5 years, tops. That turned into 15 years.

**BustOfPallas** · 05-21-2021, 02:18 PM

Originally Posted by Terpsfan82

The Japanese started buying huge tracts of land in the U.S. back in the mid eighties. So foreign "investment" is nothing new. Seemed like it was more covert back then. They undoubtedly impacted the market, but I was young and dumb when I bought my first house at 25. I wasn't concerned with principle only payments or other methods that could have shaved years off the loan. I figured I would be in the house 5 years, tops. That turned into 15 years.

I was going to point this same thing out. If I'm not mistaken I don't think that worked out too well for them. Much like the Japanese I think the Chinese are headed for a demographic cliff.

**BuryRaven** · 05-21-2021, 05:00 PM

Originally Posted by BustOfPallas

I was going to point this same thing out. If I'm not mistaken I don't think that worked out too well for them. Much like the Japanese I think the Chinese are headed for a demographic cliff.

I think China (not taiwan) is going to see huge problems soon on a socio and econ scale not seen before.

**Willbacker** · 05-21-2021, 06:08 PM

All I can say is when finalizing the deal on a house DO NOT look at the final total of what you're gonna actually pay.

**bandc** · 05-21-2021, 11:06 PM

Originally Posted by BustOfPallas

I was going to point this same thing out. If I'm not mistaken I don't think that worked out too well for them. Much like the Japanese I think the Chinese are headed for a demographic cliff.

What do you mean by demographic cliff? I've never heard that phrase before.

Sent from my SM-N986U using Tapatalk