Alaskan oil money coming to town

Unfortunately, the influx of capital represents a loss of wealth for the area, not a gain:

The dream buyer is American Homes 4 Rent, a Malibu, Calif., company that since late December has paid nearly $13.3 million in cash for 81 houses in Wake County, according to property records. The company, which formed last year, is one of several firms hoping to profit from rising home prices by amassing thousands of single-family homes across the country and converting them into rentals.

My initial reaction when this story slid by my eyes was that there must be some local connection, somebody here on the ground that greased the skids for this. I haven't found one yet, but that's not as heartening as it should be. That means these investors see an economic situation where upper middle class people would be more amenable to rent instead of buy, and that's not a good thing. Not to mention, the new landlords might not be as responsible as others:

At a Conway-area house purchased by American Homes 4 Rent in February, the two-bay garage door with windows in it collapsed a couple of weeks ago. Mold was visible on the exterior of the home's second floor, and weeds had started to overtake the yard.

A renter at the house said her family was paying $1,100 a month in rent for the waterfront property, which she said needed a lot of repairs. She said she had rented the house before the current owners bought it, and no one representing them came to see it for months after the purchase.

A few doors away on that same quiet street of Mediterranean-style homes lives Debi Robertson, who says her homeowner association has suffered because some investor-owners have failed to pay their association fees of $165 a quarter. The neighborhood needs new walls, and the homeowners who live there should not be the only ones to pay for such improvements, she said.

I realize this story strays from the usual political "beat" readers are used to here, but for those who comprehend the real reasons behind the current recession and all the political ramifications of such, trends in real estate investment should be somewhere near the top of your watch list.

Comments

1% Buyers At Work Again?

This group of greedy 1% Republicans is simply using the old buy low and sell high game plan from centurys ago, which always pound the poor into the graves as slaves to the Corporate Fascism welfare system.

Alaskan oil money?

It is still a free country and you can spend "Alaskan Oil Money" in North Carolina. And you can spend "North Carolina Tobacco Money" in Alaska.

What do you propose? A federal form showing where your money came from? A government agency granting licenses to buy real estate?

I do not want a situation where my neighbors can vote me off the street.

But on the other hand there is one who I would vote off the street. There is this younger guy with a lot of muscles and long hair. The sob cuts his grass with his shirt off. It is intimidating to us old fat guys in the neighborhood! There should be some type law to protect us older bald guys with pot bellies from these young, good looking young men strutting their stuff in a family neighborhood. These guys might be from Alaska!

The significance of the origin

The oil money from Alaska is public-owned, and dividends are paid to (individual) citizens annually. Much like many of the pension funds that invested in mortgage-backed derivitives in the run-up to the crash, the people themselves could end up losing a lot of money from risky real-estate investments.

And yes, I would vote that guy out of the neighborhood, too.

Easy...

Join The Tea Party, it's for fat, bald, inadequate,old guys...

North To Alaska The Insane Republican Way?

These guys might be from Alaska!*A Not honest Sara Palin Republican

No doubt you have been watching "Gold Rush" too much,on the Redneck TV channel, where a group of Losers from the States think they are saving Akaska from those dirty rotten Communists from Chapel Hill North Carolina and Lizard Lick North Carolina..