Reply #176: What? [View All]

[Oasis_]

"global hedge funds can get

1. cheap property
2. section 8 & other housing money
3. probably rent cheaper than local property owners due to economies of scale
4. probably wangle breaks on local property taxes for volume or some such ruse
5. the money they make will leave the community = a poorer community."

1) - Yes, with the intention of transforming a completely non performing asset into one that can be rented out with private property taxes paid to the municipality.

2)- I didn't see anything in the proposal that states the buyer will automatically qualify for section 8 reimbursement.

3) -The investor owns the property. The rent would have to be in line with comparables in the community or the unit would remain vacant--a non-performing asset.

4) - No one gives volume breaks that I'm aware of. Even if they did, who's on the hook now for property taxes as opposed to who would be with a vacant, deteriorating home?

5) Capital flowing in makes a community "poorer"? An occupied home as opposed to one sitting idle makes the community poorer? Doesn't that renter spend money in the community?