So we’ve gone from “most” houses being bought up by investors to “24%” and now down to what, 15%?
Sorry, don’t have Times access - but even if that “nearly one in six” figure was correct, it hardly qualifies as “most”.
Speculators are characteristically attracted to what they see as investment opportunity, so it’s hardly surprising that some would jump in on a perceived boom market. Sometimes substantial profits are attained. Other times, they lose their shirts, as in 2008.
“Real estate investments are known for providing low returns. Traditionally, the returns on real estate investments have been less than the rate of inflation. It is only in the past few years that there was a sudden spike in the capital appreciation earned on real estate. The rentals earned are also negligible. Also, in order to earn rent, a lot of time, money and effort, has to be put in. Also, many times, it is just difficult to rent out houses. Hence, there is an element of risk as well.”
“On the whole, the returns earned by real estate are comparable to risk-free investments even though a lot of risks has to be taken.”
That warning is mostly aimed at the middle class, but the same risks apply to investment companies and wealthy speculators. Many if not most of them aren’t interested in being long-term landlords; they want to sell out at much higher prices. They may or may not succeed.
Given all the conflicting advice by “experts” - we’re not in a housing bubble, a bust is coming, millennials mostly want the “freedom” that renting provides and don’t want to buy houses, millennials have decided it’s time to take the plunge and buy, etc. etc., the best prediction is that they don’t really know shit.
As long as I have my hut in the woods, seeds and shooting irons for self-sufficiency and my faithful spaniel at my side, I don’t worry overmuch about the abyss of a new Dark Age made more sinister, and perhaps more protracted, by the lights of perverted real estate.