2 votes

Who profits the most from the housing business ?

I am just trying to understand who earns the most amount of profit from the housing business ?
How much is the cost of really making a house ? how much does it actually cost to make ?
how benefits the most ? the builder ? the mortgage company ? the banker ?
why are the houses actually so expensive ?




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Cyril's picture

Just in case you missed that one, from not so long ago:

Just in case you missed that one, from not so long ago:

Some of the biggest names on Wall Street are lining up to become landlords to cash-strapped Americans by bidding on pools of foreclosed properties being sold by Fannie Mae...

While the current approach of selling homes one-by-one has its own high costs and is sometimes inefficient, selling properties in bulk to large investors could require Fannie Mae to sell at a big discount, leading to larger initial costs."

In con artistry parlance, they call this the "reload." That's when you hit the same mark twice – typically with a second scam designed to "fix" the damage caused by the first scam. Someone robs your house, then comes by the next day and sells you a fancy alarm system, that's the reload.[...]

Even better, many of the banks/investors who buy these home loans back from Fannie/Freddie will rent out their properties instead of reselling them, which can vastly increase their revenue streams.

Read on from there:

http://www.dailypaul.com/223245/rollingstone-magazine-anothe...

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

The way I figure it

It is the governments.

Example, property taxes, taxes for maintenance, furnishings, and upkeep, GDP numbers, asset value for bond buyers, reason for govs to build more infrastructure and schools, hire more gov employees, etc.

PS there is no way the houses are what they are worth imo. It is the land more than anything. The materials for the most part today and assembly is crap. Building codes set the minimum standards. Do not ever buy a new house from a builder unless it is a close relative. Most likely better off buying a 40 year old home if cannot build a new one from scratch.

There is nothing more satisfying than being your own contractor apart from the headaches lol. Do you really trust people from the public school system today to build your house from a contractor? At least when you run the show you have control over who you hire. Sometimes you get vvery fortunate finding some really quality people. Other times you have to watch your materials and supplies like a hawk.

Note - check out a counter top today compared to one from 30 years ago lol and try to buy as much as you can from Amish and Mennonites instead of Home Despot etc.

donvino