Scarlett Posted July 2, 2021 Share Posted July 2, 2021 I keep seeing people talking about them and I can't make sense of it. It seems like they are buying up all sorts of property from residential to commercial warehouses. Today, Blackstone just bought two casinos in Las Vegas from MGM for over 3 billion dollars. Are they buying up property to prepare for a stock market crash or something? 2 Quote Link to comment Share on other sites More sharing options...
James Posted July 2, 2021 Share Posted July 2, 2021 What you are watching is the wealthy take control of the system. Institutional ownership is nothing new in the industrial, commercial, and retail markets. They are now starting to work in the single family housing market which currently institutional investors only own a few percent. If they continue to buy all the supply it keeps prices high which allows rent to go up. When people can not afford to buy they then need to rent. Now I do not know what to do about this because I would also be opposed to the government telling a company they have to stop buying assets... We just need to hope that when the house of cards falls apart the government does not bail out the corporation like every other time something bad happens. Property is where I am looking to shelter my cash too. It is a great place to park money when you are expecting high inflation. Which if the government keeps spending money it does not have that is what we are going to see. So I think although these companies are making it harder for smaller investors like myself or individual buyers of homes to acquire property they are being smart and parking their cash in a safer spot. Full disclosure I am invested in different Blackstone and Blackrock funds. 1 Quote Link to comment Share on other sites More sharing options...
Stacey Posted July 2, 2021 Share Posted July 2, 2021 I feel like they have too much say and power over real estate be it commercial or not. I have my doubts the government will stop them either. They seem to be keen on printing more money and furthering the financial divide in America. I fear that the middle class is disappearing right before our eyes and 40 years from now, only rich people will be able to afford housing and everyone else will be stuck renting. This is why I really want to buy a house and have it paid off so I can leave it to my kids so they have somewhere to live without worrying about rent. 1 Quote Link to comment Share on other sites More sharing options...
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