Hedge fund are creating the first security that would be backed by home-rental payments.
The bonds would work similarly to mortgage-backed securities – only the flow of investor returns wouldn’t come from monthly mortgage payments, but rather income from rents of thousands of tenants living in formerly foreclosed properties. Sale of such bonds could help investors, such as Waypoint, repay their lenders and raise funds to buy up more foreclosed houses, helping the broader housing market absorb the inventory of vacant homes.
Read more on You won’t believe this…
Prices are really jumping because of the shortage of homes available and the big hedge fund dummies buying up everything. However, i am concerned. This is not a natural progression. Usually prices increase when income increases. This is not why prices are increasing. Income has not increased in Ca and the job market still stinks.
Read more on Are we headed for another bubble?…
In an effort to boost the housing market, the federal reserve has taken a new and unusual step. Instead of merely buying treasury bonds to lower mortgage rates, it is now going to buy mortgage backed securities. You know them- the toxic ones that caused the problem in the first place.
Read more on More fed meddling…
This is no great surprise, despite the media hype about how it was going to ruin us. I wonder what they will do now to try to scare us now that housing is on the mend?
read the article.
Can you believe it? After years of bulging inventory of reos, the days on market has shrunk to an amazing 33 in L.A.
Because of several reasons:
- Interest rates so low makes for a positive cash flow situation for buy and hold
Read more on Shortage of homes…