4 ms·

If they aren't living there, why don't they just rent a lot of the houses out? I guess they don't need the money but that has always struck me as weird.

wehadfun 10y ago
Squatters seem like they would cause a problem. These places probably have staffs for the upkeep though.
Symbiote 10y ago
A colleague has a cousin that owns at least a couple of properties like this. The penthouse apartment was available at all times to impress visitors (e.g. my colleague), and included a chauffeur who acted as a tour guide. The owner used it himself occasionally, if he was visiting the city for a business trip.
groby_b 10y ago
Because these houses are also safe retreats in case of upheaval in their home countries, and renters are occasionally hard to evict.
mywittyname 10y ago
I believe this is to not draw attention to the property. There was a Planet Money podcast a while ago about how high-end real estate is being used by foreigners to launder money. If the FBI catches wind, they have tools to seize the property and remunerate the proceeds. I'm guessing that renting the property means involving the IRS and potentially their foreign counterparts in the person's home country, both of which could increase the likelihood of getting caught.
- Symbiote 10y ago
  This has nothing to do with the FBI or IRS; it's in London. The UK's territories include several actual tax havens (the Channel Islands, Isle of Man, Virgin Islands, Bermuda, Cayman etc). Many tens of thousands of houses are owned by corporations registered in an offshore tax haven. There's a map of British property registered in a tax haven: http://www.private-eye.co.uk/registry http://www.private-eye.co.uk/registry
  - spearo77 10y ago
    IRS requires reporting of income and bank balances from overseas sources and institutions. They collect tax on them.
    - CyberDildonics 10y ago
      Of USA citizens, not the whole world
  - mywittyname 10y ago
    I was speaking in general, as this problem is not just specific to London. It's a common issue in the US as well.
elchief 10y ago
They don't rent them out. Source: am Vancouverite
doozy 10y ago
It's because there's a clear mathematical relationship between the price someone is willing to rent, the prevailing interest rate and the price a property is worth. As an owner, you don't want that information to get out.

wehadfun 10y ago

Squatters seem like they would cause a problem. These places probably have staffs for the upkeep though.

Symbiote 10y ago

A colleague has a cousin that owns at least a couple of properties like this. The penthouse apartment was available at all times to impress visitors (e.g. my colleague), and included a chauffeur who acted as a tour guide. The owner used it himself occasionally, if he was visiting the city for a business trip.

groby_b 10y ago

Because these houses are also safe retreats in case of upheaval in their home countries, and renters are occasionally hard to evict.

mywittyname 10y ago

I believe this is to not draw attention to the property. There was a Planet Money podcast a while ago about how high-end real estate is being used by foreigners to launder money. If the FBI catches wind, they have tools to seize the property and remunerate the proceeds. I'm guessing that renting the property means involving the IRS and potentially their foreign counterparts in the person's home country, both of which could increase the likelihood of getting caught.

Symbiote 10y ago
This has nothing to do with the FBI or IRS; it's in London. The UK's territories include several actual tax havens (the Channel Islands, Isle of Man, Virgin Islands, Bermuda, Cayman etc). Many tens of thousands of houses are owned by corporations registered in an offshore tax haven. There's a map of British property registered in a tax haven: http://www.private-eye.co.uk/registry http://www.private-eye.co.uk/registry
- spearo77 10y ago
  IRS requires reporting of income and bank balances from overseas sources and institutions. They collect tax on them.
  - CyberDildonics 10y ago
    Of USA citizens, not the whole world
- mywittyname 10y ago
  I was speaking in general, as this problem is not just specific to London. It's a common issue in the US as well.

elchief 10y ago

They don't rent them out. Source: am Vancouverite

doozy 10y ago

It's because there's a clear mathematical relationship between the price someone is willing to rent, the prevailing interest rate and the price a property is worth. As an owner, you don't want that information to get out.