THE GEORGIST NEWS
– Serving the Earth Sharing Community
1. (2013 November) Announcements: CGO
2. (2013 November) News: They’ve taken your home.
Now they want to rent it out to you.
3. (2013 November) Numbers: Speculative Vacancies in Melbourne
4. (2013 November) At the Margin: Work in London, Live in Barcelona
5. (2013 November) Likeable Link: How the Poor Subsidize the Rich
6. (2013 November) News: Land Values Skyrocket in Minneapolis
7. (2013 November) Stories: I Bought an Apartment Just to Rent It Out on Airbnb
About The Georgist News
Make your plans to attend the 2014 CGO Conference at the Radisson Hotel in Newport Beach, California July 8 to 11, 2014. The CGO staff has negotiated an affordable super deal for CGO participants. See the photo of the hotel building below.
If you thought mortgage-backed securities were dangerous, Blackstone financial has recently borrowed 479 million dollars to buy up foreclosed homes and package them as rent-backed securities.
“Like mortgage-backed securities, the bonds would get sold in tranches, with the senior levels getting rental revenue first, and the junior tranches taking the rest. Rating agencies like Kroll, Morningstar and Moody’s have blessed the deal, presenting the senior tranches with a triple-A rating, essentially labeling it as perfectly safe for investors.”
“This facilitates the single-family rental scheme, by giving firms a fresh source of cheap money to spend on cornering rental markets, wrestling them away from traditional mom-and-pop rental management companies.”
Read More: http://bit.ly/17aLbS0
Fellow Georgist and true-blue Aussie Karl Fitzgerald has released a report entitled Speculative Vacancies in Melbourne. You can view the report by clicking on the link below.
“64,465 properties were potentially unused over the study period, having consumed less than 50 litres of water a day, and 12,691 properties did not use any water, and were demonstrably unoccupied.”
Karl also sat down with David Collyer, policy director at Prosper Australia, during the latest installment of the Renegade Economist podcast. They discuss slashing Australian interest rates and ratcheting up land prices, among other topics.
While the US is recovering from the 2008 real estate crash, other countries, such as the UK, are in the midst of a boom. Furthermore, London has become a haven for land speculators, many from southern Euro-crisis countries looking for a safe place to park their money. Renting in London has become so expensive that one young professional actually saves by flying from Barcelona each day.
According to a new report from Australia, homeowners there receive “$36 billion [AUD] a year in subsidies, landlords about $7 billion and renters less than $3 billion.”
The stratification between wealthy and poor property owners is steep as well. High income owners receive $8,000 per year on average, but low-income owners don’t receive much more than $2,000.
“The report found the skewing of support to ownership, rather than renting, forced people to live further away from the centre of cities than they would like and made it hard for them to move because they face stamp duties.”
Read more: http://bit.ly/1gZ0yQG
In Minneapolis, developers report that land values in the most desirable areas have doubled in just two years.
“For builders, there is even a sense of déjà vu. ‘The new lots that are coming out… are almost the prices that they were in 2005 when everything crashed.”
If only the periodicity of the real estate cycle seemed like déjà vu. Then again, why learn when you can speculate?
Read more: http://nyti.ms/1fN9bsx
John Wheatley explains how he renovated a house in Las Vegas and managed it remotely from San Francisco using the popular accommodation website Airbnb.
Read more: http://bit.ly/18Vl23K