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They don't want to make a few percent on their capital?

by tome 10y ago

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
    - Symbiote 10y ago
      They probably do, but that doesn't mean they want to live there. I pay $2k to live in a city centre. I could pay half that to live at the edge of the city, but then I'd be at the edge of the city.
jandrese 10y ago
Being a landlord is a huge hassle, and it makes the property harder to sell when you need the cash back.
- bduerst 10y ago
  Yep, tenants laws add a new layer of complexity to the asset, which as a wealth sink isn't really needed.
GFischer 10y ago
There are people that behave in ways I considered pretty irrationaly with their capital... and they work out. If they're getting an absurd percentage increase from property values alone, an extra few percent won't make a difference. Not everyone min-maxes their capital. Governments probably end up eating them through inflation and taxes in the long run (but in the long run, we're all dead).

They don't want to make a few percent on their capital?

by 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
  - Symbiote 10y ago
    They probably do, but that doesn't mean they want to live there. I pay $2k to live in a city centre. I could pay half that to live at the edge of the city, but then I'd be at the edge of the city.

jandrese 10y ago

Being a landlord is a huge hassle, and it makes the property harder to sell when you need the cash back.

bduerst 10y ago
Yep, tenants laws add a new layer of complexity to the asset, which as a wealth sink isn't really needed.

GFischer 10y ago

There are people that behave in ways I considered pretty irrationaly with their capital... and they work out. If they're getting an absurd percentage increase from property values alone, an extra few percent won't make a difference. Not everyone min-maxes their capital. Governments probably end up eating them through inflation and taxes in the long run (but in the long run, we're all dead).