[Taronar]

Lets say a transaction has 2 parties that want to extract value (builder, buyer) if there are 3 parties now everyone needs to make money. (builder, speculator, buyer) middle mans ALWAYS increase prices and add little to no value to the actual GDP of a country. They do offer financing, but a financing value of lets say 500k vs a construction value of 500k the construction value has more weight because it is fully finanical vlaue. the 500k investment might be part of a money multiplier which puts strain on the financial system. Speculators ALWAYS drive up prices. Just look at any field Private equity has touched.

[skillina]

"Speculators" are not built-in middlemen, they are competing on bids with the buyer. Perhaps there could be some policy put in place to level the playing field between an owner-occupant who will bring mortgage-related red tape and an institutional investor who can make an immediate cash purchase, waive inspections, etc.

[horsawlarway]

I'm going to suggest that the "buy" case actually has far more interested parties trying to extract money.

In no particular order:

- Financing company

- Realtor x 2 (both seller and buyer)

- loan servicing company (may or may not be the financing company)

- Insurance companies (multiple, depending on how financing is achieved, everything from property itself, to title, to PMI)

- Appraisers

- Home inspectors

- Closing attorneys

- County tax office

- City tax office

Basically... there's a reason that renting is the right call if you're not buying to hold for at least 5 years, ideally 10.

---

There absolutely is speculation in housing markets, but at least in the markets I'm familiar with - it's not really the landlords who are renting houses that are doing the speculation. It's the folks who buy up 100+ houses in depressed/low-income neighborhoods during recessions and then sit on empty property for years.

[skillina]

The difference is that all those parties serve a necessary function. We could debate the tax office - arguably the function of a transaction tax is precisely to deter speculation or sales for short-term use.

Some speculators serve a necessary function but many do not. In my area it's not uncommon to see homes listed where the last sale was ~6 months ago and it's clear they just slapped some paint on it, replaced appliances in ways that are not generally to my taste, and then doubled the asking price.

[horsawlarway]

Yes, and those people aren't landlords renting the property.

So I'm not certain how to tie that back to the original discussion about not needing a special case to handle people accumulating multiple residential buildings.

--

Side note - I don't see this case pretty much anywhere (and I'm literally in the process of looking at homes). I do see cases where a home sold 6 months to a year ago and the new price is ~10% higher, and I do see cases where a home sold in 2021/2022 and now the price is 2x higher.

But what I don't see any of is doubled sales price in a 6 month window with just a new coat of paint.

So I'm not certain how this is relevant at all given it's non-existent in any of the markets I'm looking at.