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Why would an absentee foreigner rent a flat? Unlike buying it, that's not even an investment. It's just throwing money away. If this is common we should build
by yummyfajitas 11y ago
Why would an absentee foreigner rent a flat? Unlike buying it, that's not even an investment. It's just throwing money away.
If this is common we should build more and take the money of these stupid foreigners. If we build enough, regulation is unnecessary - why prevent foreigners from giving us their money?
- lqdc13 11y agoNot sure why they do it myself or how prevalent it is. Perhaps subletting rent stabilized housing when the price increases further? In this case it wouldn't be much of a problem. I haven't seen any statistics, just some anecdotal evidence for absentee renters, especially in the past two years. Regardless, ownership is obviously a bigger problem.
- evgen 11y agoBecause in some locations (c.f. London) this makes the asset far more liquid. Having renters requires you to engage a property management company and the presensce of tennants makes it harder to flip the property quickly if you need to get access to your stash of ill-gotten gains. It is not just stories and anecdote, there are large portions of high-end London real estate sitting empty because foreign buyers often do no want a tennant.
- yummyfajitas 11y agoUntil you cite some statistics (specifically the residential vacancy rate), you are in fact just repeating stories and anecdotes.