Wednesday, April 11, 2012 7:28:51 PM
These are the guys that could be big competition. Probably would be mostly lower-end market properties so may not have the effect on dickmilde as much as it might on my midling affordable junk property.
With the size they're wielding (bigs/hedgies/etc) if they get packaged deals from the fed, they'll get steep discounts to what you or I could get IMO and lift a bunch of inventory off the market. Good for homeowners near term wanting their property values to appreciate a little bit. But not good for us owners renting out units.
Talk about tough competition- imagine a big block of homes in your area being swept up at prices 10-20% below what you would pay for them and then having those big batches suddenly become vacant rentals needing tenants in direct competition to your place that you paid more for. Then throw in the cash firepower these big buyers would have in pricing down rent rates and crowding out us little fish.
It'd kinda be like Microsoft vs some little software company with a good idea but little money and no pricing power. If MSFT wanted to, they could run the small company under by price cutting them out of market to where little fish can't swim any more.
The upside would be lower rents for the masses for a bit until the bigs realize the little competitors are dead and gone or struggling mightily against the bigs' lower rent offerings. Then the bigs jack the rents when the competiiton is completely gone or insignificant enough to not bother with.
Hoping I may find a worthwhile existence in between the extremes where life is good enough to allow for maybe a bottle of wine on occassion and maybe even some steak cooked over an outdoor alderwood fire enjoyed by family members AND have the time to savor, enjoy, and relax simultaneously
Ah, the good life. Still fleeting but some day.
With the size they're wielding (bigs/hedgies/etc) if they get packaged deals from the fed, they'll get steep discounts to what you or I could get IMO and lift a bunch of inventory off the market. Good for homeowners near term wanting their property values to appreciate a little bit. But not good for us owners renting out units.
Talk about tough competition- imagine a big block of homes in your area being swept up at prices 10-20% below what you would pay for them and then having those big batches suddenly become vacant rentals needing tenants in direct competition to your place that you paid more for. Then throw in the cash firepower these big buyers would have in pricing down rent rates and crowding out us little fish.
It'd kinda be like Microsoft vs some little software company with a good idea but little money and no pricing power. If MSFT wanted to, they could run the small company under by price cutting them out of market to where little fish can't swim any more.
The upside would be lower rents for the masses for a bit until the bigs realize the little competitors are dead and gone or struggling mightily against the bigs' lower rent offerings. Then the bigs jack the rents when the competiiton is completely gone or insignificant enough to not bother with.
Hoping I may find a worthwhile existence in between the extremes where life is good enough to allow for maybe a bottle of wine on occassion and maybe even some steak cooked over an outdoor alderwood fire enjoyed by family members AND have the time to savor, enjoy, and relax simultaneously
Ah, the good life. Still fleeting but some day.
I don't mind stealing bread from the mouths of decadence... But I can't feed on the powerless when my cup's already overfilled.
-Temple of the Dog
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