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Out of State Real Investors: Good for Tacoma or Bad?
Out of state investors are buying up big chunks of real estate in the Tacoma area.
These large investment companies are making deals like the one that leads a story from The News Tribune earlier this week; New York-based FREO paid $2.9 million for 31 homes out near Spanaway. Almost all of those properties are rentals.
Other investment companies, with names like "American Homes 4 Rent," have been making similar buys. According to another TNT article, one in 10 homes sold in Pierce County in the last year wasn't bought by a real person; instead, they were purchased by these investment goups, and the true number of homes bought by investors, rather than real families, is probably much higher.
Any Econ 101 student will tell you that more homes selling means fewer on the market, which should push home prices higher - good for property owners, right? But what happens to the Pierce County real estate market when one or more of these investment groups decides they want out?
What if you add into the equation the complicating fact that these homes will be operated as rentals by their now distant owners? The term "absentee landlord" seems pretty apt here. That's not necessarily synonymous with "slumlord," but it's not a huge leap, either.
Do we have reason for concern? Or should we just be glad that someone is interested in buying property around here?
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