Apartment rent increase "too much"

[Broncojohnny]

Don't many apartments offer to move you in for free? I would look into that as a way to cut moving costs.

I'm curious of one thing. I read a few days ago that many rental properties, (mostly single family homes but also apartment complexes) are being bought up by investors and used to create securities that are traded on the market. That could be part of the reason rent is climbing so much.

It is one of the biggest things keeping housing propped up. There is a good chance that the market is in for another blow up soon.

[DON SVO]

says the guy that lived in apartments willingly for more than a decade.

LOL not near a decade: college and some family issues kept things interesting. As for the last 5? Not willingly.

I originally got into house buy mode right when everything went to shit 4ish years back. I stayed in the last one the final two years getting shit sorted out to be able to make a move as the market recovered. I demanded 4 fucking walls of brick.

[kingjason]

Lurch do you have a sugar baby?

[HarrisonTX]

Buy a house? Far less than rent.

[SVT Lurch]

Don't many apartments offer to move you in for free? I would look into that as a way to cut moving costs.

Unfortunately, these aren't that nice.

Lurch do you have a sugar baby?

Haha, no sir.

Buy a house? Far less than rent.

That's my vote, but not realistic in this situation.

[Lone Sailor]

Apartment rent increase "too much"

It is one of the biggest things keeping housing propped up. There is a good chance that the market is in for another blow up soon.

Bingo. All these new subdivisions that we're building, they're selling every lot as fast as the paving is cured on the streets.

[VaderTT]

Was she ever late on rent or cause any issues with management? My leasing manager friend told me complexes sometimes use that to "manage out" a tenant when they cause a problem for them.

[SVT Lurch]

Never late and only made one complaint all year (right after moving in for a legitimate reason and it was fixed).

[Broncojohnny]

Bingo. All these new subdivisions that we're building, they're selling every lot as fast as the paving is cured on the streets.

Are they selling to the investment groups? I know Blackrock has huge funds going to specifically invest in thousands of homes at a time.

[Lone Sailor]

Are they selling to the investment groups? I know Blackrock has huge funds going to specifically invest in thousands of homes at a time.

For the most part it's individuals. There seems to be a waiting list of sorts with these home builders from prospective buyers. The boom isn't slowing down anytime soon either. I've heard reports that DFW will once again be among the top 10, possibly top 5, best housing markets in 2014. And the way these lots are being sold off I have no reason to think otherwise. Also, commercial property seems to have sparked in recent months and many areas are flooded with investors snatching up any and every acre of ground available.

[slow99]

It is one of the biggest things keeping housing propped up. There is a good chance that the market is in for another blow up soon.

No no no, these things are collateralized and securitized. This is triple A paper dammit!

[Broncojohnny]

For the most part it's individuals. There seems to be a waiting list of sorts with these home builders from prospective buyers. The boom isn't slowing down anytime soon either. I've heard reports that DFW will once again be among the top 10, possibly top 5, best housing markets in 2014. And the way these lots are being sold off I have no reason to think otherwise. Also, commercial property seems to have sparked in recent months and many areas are flooded with investors snatching up any and every acre of ground available.

I work in commercial and the market has been very hot and overbid all this year. I am just curious what residential folks have seen. I know mortgage apps are in the toilet, the rise in rates has killed them in the last few months. I'm wondering how long before we see the results of that. Rates aren't going to do anything but go higher. I think DFW will continue to do better than most of the country just because housing is cheap and people keep moving here.

[slow99]

I work in commercial and the market has been very hot and overbid all this year. I am just curious what residential folks have seen. I know mortgage apps are in the toilet, the rise in rates has killed them in the last few months. I'm wondering how long before we see the results of that. Rates aren't going to do anything but go higher. I think DFW will continue to do better than most of the country just because housing is cheap and people keep moving here.

Blackrock spent $7.5 Bln in 2 years scooping up over 40,000 homes.

[Broncojohnny]

No no no, these things are collateralized and securitized. This is triple A paper dammit!

Fucking scary is what it is. I talked to a guy I have known for 15 years and he said they are buying repo houses in batches of a hundred at a time. He said a package will have everything from a $70K turdhole in Tulsa to a Bel Air mansion in it. It is a pot luck. He says they buy them, rehab them a few at a time (with a short list of contractors that use the same materials in every job) and sell them off. Blackrock and the funds will buy them in the same lot sizes once he is done, a hundred at a time. His capital takes a 14% IRR to service and he told me they are getting over 20% on every deal so far.

[slow99]

Fucking scary is what it is. I talked to a guy I have known for 15 years and he said they are buying repo houses in batches of a hundred at a time. He said a package will have everything from a $70K turdhole in Tulsa to a Bel Air mansion in it. It is a pot luck. He says they buy them, rehab them a few at a time (with a short list of contractors that use the same materials in every job) and sell them off. Blackrock and the funds will buy them in the same lot sizes once he is done, a hundred at a time. His capital takes a 14% IRR to service and he told me they are getting over 20% on every deal so far.

Yep, see what I put a minute ago - $7.5 Billion on 40,000 in a 2 years ... I think they initially thought they'd do $3 billion in 3 years or some shit like that.

Bianco or Zerohedge ran a great story back in August outlining the demographics of these "rents" and the people that live in these zip codes. It was laughable. Money needs yield, here, let's find some fucking yield. Hell, the stock market doesn't seem TOO far above average fair values, keep pumping!