…Paul Ryan and his crony enablers have snuck into last week’s spending bill a repeal of a 35-year tax on foreign real estate investment known as FIRPTA.

 

Since the housing meltdown 7 years ago, millions of Americans have lost their homes in foreclosure and are now renting. Rental prices have been increasing very steadily to the point where “Housing is unaffordable for most working class Americans…

In large part the homeownership rate has fallen because home prices are out of reach to Americans.  Many are relegated to renting… Americans are paying an ungodly amount of money in rents per month and much of this is flowing to new corporate landlords thanks to banking friendly bailouts.

The rent is too damn high

The homeownership rate dropping means people are living somewhere else.  Sure some Millennials are moving back home with their parents but others are opting to rent.

Take a look at this chart:

11.2 million households that rent (26.5 percent of the total) are severely burdened by the amount of rent they are paying.  What this means is that:

rents are consuming half of their monthly household income. 

Housing is the biggest expense for Americans so this is an important line item to follow.

This is problematic because inflation is occurring in real things.  There is this constant narrative that inflation doesn’t exist so therefore central banks can continue on this wild uncharted experiment in monetary policy.  So far, it looks like banks are doing just fine but the public isn’t.  Rents are going up but incomes are not,” reportsMyBudget360.

And it’s about to get much worse with a a new law passed last week’s spending bill. Thanks Paul Ryan-John Boehner 2.0. A bad situation in real estate is about to become much worse.

Many large corporations have been buying up much of the real estate since the housing crisis.

“…individuals or institutions with access to capital or cheap financing have been buying up properties across the U.S. in order to rent them to the same people foreclosed on during the financial crisis.

This represents a primary driver in the transformation of the American economy into a neo-feual wasteland of broke debt serfs….

Yep,

we bailed out the financial system so that financiers with access to cheap credit can buy up all of America’s real estate so that they can then rent it back to you later.

Blackstone has spent more than more than $2.5 billion on 16,000 homes to manage as rentals, deploying capital from the $13.3 billion fund it raised last year, said Jonathan Gray, global head of real estate for the world’s largest private equity firm.

…Paul Ryan and his crony enablers have snuck into last week’s spending bill a repeal of a 35-year tax on foreign real estate investment known as FIRPTA.

Let’s just go ahead and put a nail in the coffin of the idea that American citizens will ever actually own their own homes again. Instead, you can rent from China’s sovereign wealth fund, or perhaps a Saudi prince…

 

From Bloomberg:

Read the rest of the story at GramsGold.com