Reply to buying now or waiting another year?

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Reply to "buying now or waiting another year?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Mortgage rate 3% vs 5% is different situation. Cost of money has increased significantly in the last few weeks.

Cap rate for buying and then collecting rent was whole lot different when rates were lower. There will be some fireworks if rates go around 6-7%. All investors money from housing will shift to treasury. I meant no investor will hold rental generating 3-4% if treasury yield 6-7%. Inventory will drastically increase in that situation. 
[/quote]

Except most SFH investing is a long-term play unless it's a flip.  You think these guys are going to eat a loss after only a brief hold?  Nope.  They'll take their forced depreciation and by that time if things have at all flattened they'll hold with the expectation that bullish times are coming.[/quote]
So, riddle me this genius.

Why were they not buying pre-covid? Why wasn't there a huge run up in housing pre-covid, when these guys still had access to essentially unlimited capital.[/quote]

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