Originally published at: https://boingboing.net/2018/07/19/sell-sell-sell.html
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As long as it’s only rich fucks laundering ill-got gains who get hurt, then I’m all for this.
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Time to watch The Big Short again.
What are they calling credit default swaps this time?
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“Build-to-rent” + private equity funds = your apt lease bundled, securitized, & sold.
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That worked so well in the USA in 2008, what could go wrong?
/s
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Unfortunately it won’t be. The oligarchs and gangsters and corrupt politicians just hold and go long on whatever they already have in London (which will eventually break even) and move to the next easy-to-game desirable market when they need another home-sized safe deposit box.
The luxury housing that’s being sold off as unsold inventory to the bulk buyers (mostly greedpig private equity funds) will be turned into rentals that will be affordable only to the merely wealthy.
At least property prices in general will fall in London, but it’s an alpha++ global city so they’ll still be insane for most people.
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Well, it’s an alpha++ global city until March 29th next year, at least.
After that, who knows?
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Will this have any hope of reducing rent costs?
“Wouldn’t that be just terrible?” I know this was snark, but it is so worth saying that no, this would absolutely not be terrible.
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Well common sense always said this was unsustainable… first the oil Sheikhs, then the Chinese billionaires, and now the Russian oligarchs are hitting their top bids. Unless the Trumps need someplace to hide in exile, there aren’t many other crowds with this kind of money to sell to.
Not if your landlord is a private equity bastard.
Because he can’t flip the property in this market to make a profit, he’ll just have to raise your rent to cover for his bad bet. So the more the market tanks, the more he’ll raise your rent!
And if your toilet breaks, don’t even think about complaining!
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?! Well, I know.
You can always feel Cory’s glee when he’s writing about London property prices, it’s like looking back at an ex who turns out to be even more of a train-wreck now than at the time.
I’m guessing that even if/when prices come down, they won’t drop the 50% that I’d need to be able to afford anything (not even in London).
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Having moved from one of the most desirable cities on earth to a city nobody has heard of in the middle of nowhere, all I can say is it feels good not competing with trust fund kids for hovels.
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Last I heard it was Brexit.
Let’s just hope trickle-down continues not to work in a falling top-end market, because otherwise - much as the wealthy will take big hits, lots of ordinary folks who scraped together deposits will be fucked. Particularly given the underperformance of pensions, many people are heavily exposed to the housing market.
I absolutely think that the housing market needs correction - but this correction needs to be a managed shift based on government policy rather than a wild swing that wipes out retirement plans.
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