5 ms·

I feel like there is a massive opportunity to be had here from managing and renting out these places.

by afarrell 10y ago

chadgeidel 10y ago
I'm pretty sure foreign oligarchs aren't interested in AirBnB-style arrangements.
- pavel_lishin 10y ago
  Maybe afarrell wasn't talking about the oligarchs being the ones renting out the spaces.
  - chadgeidel 10y ago
    That's a fair point, and this is merely my opinion, but if I could afford housing all over the world, I certainly wouldn't want to deal with the fact that I maybe cannot go visit London/NYC/wherever on a whim and stay at my own private residence. Renting has downsides even with "perfect renting arrangements" which cannot be mitigated by a third party (well, without presumably breaking an entire host of laws).
    - pavel_lishin 10y ago
      That's kind of what I was jokingly suggesting; that the caretakers - who likely are the only ones who see the inside of the place for years - just surreptitiously rent it out from under the actual owner.
jandrese 10y ago
People dumping hundreds of millions into the market just to hide it from external forces aren't interested in being landlords.
- tome 10y ago
  They don't want to make a few percent on their capital?
  - jonknee 10y ago
    They probably don't want any more of a paper trail leading back to them than they have to.
    - totalcrepe 10y ago
      A net zero property seems like it could generate less paperwork if the management balanced incomming and outgoing payments, (less their fee.) How exactly do they pay utilities/etc without anyone noticing their transfers? But I don't believe they are successfully hiding anything in any case, governments want everyone to be guilty of something so they can achieve whatever political outcome they need through selective enforcement.
  - pavel_lishin 10y ago
    People who can afford to buy overseas property for cash "just in case" are probably not worried about making an extra $3k/month, not if it adds the headache of being a landlord.
    - Symbiote 10y ago
      Note that £20-45k/month (US$25-60k/month) is more like the going rate for these properties. http://www.nestoria.co.uk/mayfair/property/rent/2?price_min=4000 http://www.nestoria.co.uk/mayfair/property/rent/2?price_min=... But either the owner isn't interested in the money/hassle/attention, or occasionally uses the property — it's difficult to show off your fancy London apartment if people are living in it, and you can't casually lend it to friends or relatives.
      - puranjay 10y ago
        I reckon people with $25-60/month to rent out these properties would already have enough money to buy their own homes slightly away from the city center
hirsin 10y ago
There's a better opportunity in buying rundown/condemned places and selling them for 4-6x to overseas money who apparently don't look before buying. See "crackshackormansion" below - everything that's not a mansion is just begging to be flipped.
crdoconnor 10y ago
Many of these properties are new builds and drop in value as soon as they are 'lived in'.

I feel like there is a massive opportunity to be had here from managing and renting out these places.

chadgeidel 10y ago

I'm pretty sure foreign oligarchs aren't interested in AirBnB-style arrangements.

pavel_lishin 10y ago
Maybe afarrell wasn't talking about the oligarchs being the ones renting out the spaces.
- chadgeidel 10y ago
  That's a fair point, and this is merely my opinion, but if I could afford housing all over the world, I certainly wouldn't want to deal with the fact that I maybe cannot go visit London/NYC/wherever on a whim and stay at my own private residence. Renting has downsides even with "perfect renting arrangements" which cannot be mitigated by a third party (well, without presumably breaking an entire host of laws).
  - pavel_lishin 10y ago
    That's kind of what I was jokingly suggesting; that the caretakers - who likely are the only ones who see the inside of the place for years - just surreptitiously rent it out from under the actual owner.

jandrese 10y ago

People dumping hundreds of millions into the market just to hide it from external forces aren't interested in being landlords.

tome 10y ago
They don't want to make a few percent on their capital?
- jonknee 10y ago
  They probably don't want any more of a paper trail leading back to them than they have to.
  - totalcrepe 10y ago
    A net zero property seems like it could generate less paperwork if the management balanced incomming and outgoing payments, (less their fee.) How exactly do they pay utilities/etc without anyone noticing their transfers? But I don't believe they are successfully hiding anything in any case, governments want everyone to be guilty of something so they can achieve whatever political outcome they need through selective enforcement.
- pavel_lishin 10y ago
  People who can afford to buy overseas property for cash "just in case" are probably not worried about making an extra $3k/month, not if it adds the headache of being a landlord.
  - Symbiote 10y ago
    Note that £20-45k/month (US$25-60k/month) is more like the going rate for these properties. http://www.nestoria.co.uk/mayfair/property/rent/2?price_min=4000 http://www.nestoria.co.uk/mayfair/property/rent/2?price_min=... But either the owner isn't interested in the money/hassle/attention, or occasionally uses the property — it's difficult to show off your fancy London apartment if people are living in it, and you can't casually lend it to friends or relatives.
    - puranjay 10y ago
      I reckon people with $25-60/month to rent out these properties would already have enough money to buy their own homes slightly away from the city center

hirsin 10y ago

There's a better opportunity in buying rundown/condemned places and selling them for 4-6x to overseas money who apparently don't look before buying. See "crackshackormansion" below - everything that's not a mansion is just begging to be flipped.

crdoconnor 10y ago

Many of these properties are new builds and drop in value as soon as they are 'lived in'.