Investors from foreign countries come in and pay cash. People with decent jobs and good credit cannot compete because a cash deal is more attractive and less hassle for banks and private sales. Left over less attractive property values are inflated because there are limited choices for normal people looking for primary residences. Why do we allow foreign groups to come in and scoop up homes? It is not good for America. It is scary, just like so many unbelievable things that are swept under the rug by the hour!
Kind of like “Potterville” from the nightmare vision of “It’s a wonderful life”. Eventually Potter owned the whole town, and everyone became his slave.
You can go to a bank, get approved for a loan and have the money three days after you are approved. Then go house hunting with cash.
Let me rephrase this for you. If someone wants to buy a house a large number of foreign investors with money increases prices and is a very bad thing, requiring laws to prevent it from happening.
Now look at this from the other side: If you want to sell your house a horde of flush foreign investors with cash is a very good thing. In fact the government ought to subsidize these wonderful foreigners.
There are also US firms doing it. It would seem to me one should be wary of buying in or near such neighborhoods if one has lofty expectations. If investors decide to hit the sell button, home values would likely fall. If they decide to hold on for the long term, there goes home values. Investors aren't going to do any upkeep on the properties that is more than necessary. If mortgage rates increase substantially, there goes home values.