Google is funding a Low Income Housing Tax Credit (LIHTC) that will provide tax credits to builders and developers who are involved in the creation of housing for low-income families and senior citizens, the search giant announced earlier this week [1]. The process will be managed by the U.S. Bancorp Community Development Corporation, which is part of U.S. Bank.
Experts speculate that the search engine and technology giant is likely moving into the real estate investing arena for multiple reasons, including $30 billion in cash and short-term investments – enough to make shareholders nervous – and the fact that the move aligns perfectly with the informal motto, “Don’t be Evil.” Representatives from the company are simply stating that they wish to fill a “void in affordable housing investment [and] provide relief to people who otherwise may not have access to quality housing.”
Experts disagree on the degree to which this investment will impact the local housing markets, but they could spur real estate development or boost jobs. Do you think that Google should be investing in real estate, or should it stick to technology?
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[1] http://blogs.forbes.com/francescalevy/2010/09/02/google-usbc-low-income-housing-tax-credit/?boxes=Homepagelighttop
Google, like banks should not be able to dabble in real estate. NAR should do something about it!!!!!!!!!!!!
EBay is in it in a big way, why not Google?
Forgot to mention, McDonalds is one of the biggest real estate holders in the country.
$86M is a drop in the proverbial bucket. I hope they are just testing the waters with it.
September 5, 2010
Even though I applaud whenever a giant firm finds ways to spur investment in affordable housing, I also question Google’s motive for doing do. Does Google want to dominate the real estate investing market in the future as it now does in the search engine field? Look up Heather Seitz’s and Armand Morin’s blogs as to what draconian measures Google is taking right now with Adsense, which left unchecked could spell the demise of Clickbank. From their blogs, one gets the impression that Google is fast becoming a modern day John D. Rockefeller, gobbling up any competition in it’s path. Will this be the same in the real estate investing world in the future?
I don’t see why not!
We should wish that all big and fat money would invest in Real Estate and create jobs again.
As an investor, and former Real Estate agent, I see this as just another Big corporation attempting to control and manipulate the entire real estate industry. The same way the banking and real estate industries are trying to. Entrepreneurial ideals are what grew this country. It’s what is keeping it somewhat in motion, and it is what will keep it moving well into the future, that is as long as big self serving, bottom line driven corporations don’t simply swallow up the entire thing altogether. It is beginning to look more like Andrew Carnegie the Steel Magnate rather then Carnegie the Real Estate entrepreneur. History it seems, truly does repeat itself. And it stinks.
Does “Google”, as the giant corporate “person” that it is, have a track record of benevolent political lobbying or social behavior toward the average American citizen? How about it’s company captains? Watch’em close, all of ‘em! Their actions speak louder than their words!
I see two sides to this. looking good and testing the water.
watch out as this may bacck fire on us investers.
Isn’t it fun to speculate why a large company like Google would want to invest in real estate? Could it possibly be that maybe they’re thinking that it could be a good investment? Nah…. what fun would that be?