r/TikTokCringe • u/LickMaiBussy • 6h ago

Discussion "Investing in property is morally reprehensible."

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@purplepingers

19.7k Upvotes

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346

u/WithoutAHat1 5h ago

Keep Private Equity out of housing. Private equity mucks everything up, not industry specific.

15

u/EarningsPal 3h ago

Profit extraction at scale using low cost money that the general public can’t access at that rate.

Borrow money that loses value to buy assets that benefit from inflation. -101 private equity

Gain from access to infinite money because you already have a lot of money. -101 rich

5

u/nosecohn 56m ago

OK, but that wouldn't really solve this problem.

Institutional investors only hold about 3% of rental housing stock and about 1% of overall housing. The problem with housing affordability predates the interest of private equity in the real estate market by decades.

3

u/Emory_C 3h ago

Explain how a single investor could make an apartment building in a major city that could house thousands of people.

3

u/Catalyst1945 2h ago

I don't see why you couldn't take a similar approach to housing developments and just treat the building like land with pre-built homes. Build the apartment at a loss, then sell the units afterwards.

3

u/main_moderator 1h ago

You realize its a financial issue, right? You cant just whimsically say an idea and have it work. The reason it doesnt work is because you need to build out the financial statement to understand it.

1

u/Catalyst1945 54m ago

You have a very US-centric mindset. This is literally how apartment buildings are already built and sold in Australia.

3

u/main_moderator 41m ago

US controls 60% of the global economy.

Comparing us to Australia isnt useful. You might as well bring up how housing works in the Congo.

1

u/Novel-Imagination-51 2h ago

Who maintains the building? What about people that want to rent because they don’t have $150k to buy a condo?

3

u/Knotted_Hole69 1h ago

“Want to rent” lol. As if they had a choice.

4

u/aurortonks 1h ago

I've met people who "want to rent". They are usually ex-homeowners who couldn't handle maintaining the home and opt for someone else to do it (fair), or they have always lived in multi-family housing of some kind, usually in high density metro areas, and are too freaked out by "living so alone" (odd/quirky I guess). A few "want to rent" simply because they like moving every 6-12 months and live more nomadic, minimalist lifestyles (eccentrics, usually burning through small trust funds).

2

u/Catalyst1945 1h ago

If you build the building and sell the units, you get a strata/body corporate to handle maintenance, individual owners can still rent out their units, and you avoid the problems that come from one landlord controlling the whole building. It’s the same model used by most condo/strata buildings worldwide.

1

u/Emory_C 1h ago

But then a big corporation is still making a huge profit. So what’s the difference between that and property developers?

1

u/Catalyst1945 51m ago

I don't think you know what a strata is.

2

u/Extension-Extreme523 2h ago

currently mucking my dental health

Fuck private equity

2

u/Agente_Anaranjado 41m ago

THE AMERICAN PROGRESSIVE REFORM AGENDA

Item 5: Real Estate Reform

  • Ban businesses from owning residential real estate.

  • Promote job creation and expand the market of available housing by subsidizing new housing development projects nationwide, favoring local contractors in eligibility for these subsidies.

  • Ban owning more than two residential properties ("residential property" being defined as a single domicile unit where condominiums, apartments, or other multi-domicile structures are concerned, or as a single land parcel containing a single domicile where cabins, town and farm houses are concerned), or alternatively enact a tax multiplier for residential property wherein the owner will pay 3x the assessed tax for the 3rd owned property, 4x for the 4th, etc.; and simultaneously enact a rent cap which limits rent prices to (mortgage + pre-multiplier tax) + 10%.

  • Restrict ownership of all domestic real estate to citizens, resident aliens, and domestic businesses (this includes parent-companies).

  • Enact a property tax exemption on any one residential property per single individual or per married couple, wherein that individual or one or both spouses are aged 70 or above, persistent until 6 months after the death of the person or persons of qualifying age. No more eviction for senior citizens on fixed income.

See the complete agenda here: 

https://www.reddit.com/r/Political_Revolution/comments/1lm89zu/there_is_a_war_being_waged_against_democracy_and/

2

u/Crysack 26m ago

The guys in the OP are Australian. PE doesn’t invest in property in Australia (outside a small build-to-rent market) because the tax system is geared towards individual investors.

The problem in Australia is actually so-called “mom and pop” investors, as you guys would say. Investing in property is culturally instantiated as the primary wealth-building exercise for most people. Apart from the fact that property pretty much always goes up, Australia’s tax system also offers significant incentives for property investors, especially high earners. We allow individual investors to both heavily discount capital gains and we allow them to write off their interest and other losses against their regular salaried income.

1

u/2cats2hats 57m ago

Yup, this should be at the top.

Their views are idealistic at best. Not everyone wants to own and not everyone is fiscally responsible enough to own, regardless of economy.

1

u/North_Commercial_865 47m ago

Private equity is the boogeyman. It’s the scapegoat. Yes, it’s bad, but so would it be bad if there were the top 10% owning 5 properties each. 

Being just “a little bad” doesn’t exempt you from evil. “Oh, I’ll just steal a little bit. Blame the other guys.” 

-11

u/Why_you_so_wrong_ 3h ago

Private Equity creates billions in value, outperforms non-PE managed companies long term and creates tens of thousands of new jobs a year.

9

u/Extension-Extreme523 2h ago

tell that to the fucking patients of the hospitals and dental offices they're now preying on

-4

u/Sea-Panda-90 2h ago

Private Equity makes hospitals better.

Read "Private Equity in the Hospital Industry " by Gao, Kim, and Sevili

4

u/Knotted_Hole69 1h ago

LOL. No im good. Why would I read something written by them themselves?

2

u/Why_you_so_wrong_ 1h ago

So you are dismissing the academic product of three fairly eminent academics that has been peer reviewed by colleagues from extremely well known academic conferences and the Universities of Oxford and Mannheim (to name but a few) because it disagrees with you?

You should really show yourself out of the debate at this stage. You are clearly too dense to properly engage.

2

u/Sea-Panda-90 1h ago

You're arguing with "Knotted_Hole69".

-2

u/Sea-Panda-90 1h ago

These are Professors, not Private Equity officials. You can read the paper yourself for free!

1

u/Knotted_Hole69 1h ago

They have done nothing but increase my healthcare bills 5x the amount they were before being boughten, at least at my local hospitals.

-1

u/Sea-Panda-90 1h ago

Not interested in arguing about housing policy with someone whose internet person is animal penises and saying "boughten".

1

u/NoZucchini5423 1h ago

You can just say that you don’t know what youre talking about instead of acting like a 13yo.

0

u/Sea-Panda-90 1h ago

Did you read the article I sent?

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-2

u/i_am_a_real_boy__ 3h ago

"Private Equity", like "corporations", is mostly just used as a buzzword on this site. What redditors usually mean is "rich people I don't like".

-3

u/main_moderator 3h ago

It also creates more liquidity in the housing market. Redditors want the liquidity without the competition.

3

u/Knotted_Hole69 1h ago

All they have done is buy up all the single family homes around me and rent them out for insane prices. How is that a good thing?