There it goes again in the U.S.
Cheap credit, low interest rates, lots of buying power to anyone, no desire to ever pay-off a mortgage, or even move-in. Looks familiar.
Excerpts from your new article link...
New York Times
June 20, 2019
"Want a House Like This? Prepare for a Bidding War With Investors"
This house in Atlanta was sold three times in one year, a
sign of exploding investor interest in starter homes that is
reshaping the nation’s housing market and driving up prices.
What is happening in Atlanta is partly a familiar story of gentrification pushing up prices and driving out longtime residents. But those trends are being spurred by a fast-growing industry that promotes investment in single-family homes: lenders who provide the capital, brokers who handle transactions, wholesalers who buy homes by the dozens and sell them before they even take possession.
The investors take many forms. There are fix-and-flippers who buy homes cheaply and resell them for a profit (sometimes to owner-occupants, sometimes to out-of-towners who rent the homes out on Airbnb). There are those who buy and hold, generally larger institutional investors who rent the properties out. There are traders who acquire properties and try to resell them once they appreciate, sometimes in weeks, sometimes in years.
But Ms. Ceesay has spent more than two years trying to buy a home. Time after time, she has put in offers, only to be told she was beaten out by a cash buyer. Some sellers don’t even give her a chance to bid: They specify they want cash right in the listing. Other times, listings disappear in hours, before she has put in an offer — often to reappear on the market weeks or months later, with $100,000 or more added to the price.