Comments by "worn down" (@worndown8280) on "Blackstone to BUY 50 Billion in Houses" video.

  1. This assumes they wont get margin called, which they will. This also assumes that the ROI when rents crash will be above 5%, which it wont. Why would you buy a real estate asset when you can get more ROI from corporate and government bonds? Makes no sense. But lets say they do do it. All a state has to do is put a special corporate rental tax of x percent per rental and poof, ROI is wrecked and its not profitable to own a rental home. To me this is a blatant fear tactic. They are telling you dont wait, you have to buy NOW. IF YOU DONT BUY NOW THE BIG SCARY CORPORATE OVERLORDS WILL BUY ALL THE HOUSES!!!!!!! Dont believe the hype. Just FOMO 2.0.
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  2. If interest rates go much higher, these investors will get a higher roi on bonds than on rentals. So that begs the question, why would you buy a home for rental reasons when from a demographic standpoint, demand is declining, which long terms means decreasing prices? Short answer is only a fool.
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