@gillbatescoin @BradHuston Once an institutional investor owns a property, it NEVER has to go back on the market. It can be rented out forever - they don't need cash now, they want that 50-year income stream. A few people getting a temp windfall now doesn't make up for generations not being able to own.
@gillbatescoin @BradHuston Think of it this way... 1 fam gets $70k now. But if another fam had bought it... they live there for 15 years, pay the mortgage, and sell it for a similar profit to another family, who lives for 15 years. Then another. 3 families that got to turn 45 years of rent into investment.
@gillbatescoin @BradHuston Now, think of the likely 15+ families who will rent the house over that same amount of time. Let's say it's $1k rent/mo and that never changes. Over 50 years that is $6 million dollars - with a 1k rent in 2070 - taken out of the pockets of families unable to build equity.
@gillbatescoin @BradHuston That house, which was previously a way for multiple families to essentially recoup their rent and live somewhere for free, is now going to lose all that investment potential. What those families leave the kids to inherit? How do they get $25,000 loans without mortgage collateral?
@gillbatescoin @BradHuston Meanwhile, investment bank recoups their "20% above market price" in 10-15 years of renting. Another 10 years is profit enough to buy another house. 30 years from now having bought that one house, the bank now owns 3 houses off just the one - and still rents 3 and can buy more!
@gillbatescoin @BradHuston This is *generational wealth* being transferred away from homeowners of ANY class. This is how one house keeps dozens of people from being able to save for the future and invest wisely. But 30 years from now it'll be "fucking mid-centurians with VR toast don't know how to save!"
@gillbatescoin @BradHuston (Screwed up the math here, it's not $6 million at $1k rent, but adjust for inflation and the bank WILL make millions off of a house over that amount of time even at a $1k rent)
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