As a first time home buyer in a city where 52 percent of homes are being bought by private equity I recognize there is a fatal flaw in our system. Lots of these companies buy the cheapest houses on the market by over bidding, sometimes triple the asking price. In turn it makes it nearly impossible for my generation to purchase a reasonably priced first home. Not only does this delay the process for the first time home buyers, each and every one of those houses bought by these private companies will never be put back on the market into the housing pool. Making my generation perpetual lifelong renters. I am not requesting but demanding regulations. I will list some of the ideas I have come up with that could potentially resolve this issue and allow more young americans to be home owners.
-Private companies/ LLC/ banks are not alloud to put offers on a home that has been on the market less then 30 days.
-Private companies/ LLC/ banks if purchasing with intention to rent out are not alloud to purchase single family homes. It must be 2 units or more.
- Companies that have purchased a single family residence with intention to rent must wait 5 years before renovating a home into multiple units ( ideally this would deter them from chosing single family homes and/or it would keep more single family homes for future generation if the do choose to sell it prior to the renovation period ending)
- Homes that are bought and sold again within one calender year need to go through a rigorous inspection/evaluation process (this targets “flippers” because they are known to cut corners the value of the property increases dramatically even though the quality of work that was done is below par and will not stand the test of time)
- Private companies/ LLC/ banks offers on a single family residence must be a reasonable and justifiable amount (I came across this issue many times the asking price was 90k and the offer price was 275k. This is unnaceptable and makes it incredibly difficult to compete. The reason they are able to do this is because they can write it off as a loss on thier taxes and/or they intend to rent that residence infinitely and know eventually there will be ROI)
- Dedicating homes of curtain sizes or prices exclusively to first time home buyers or general public within a curtain tax bracket.