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So, I've also been told that rich Chinese people were buying up condos and letting them sit empty. That's the thing, though, I kinda don't believe it. I mean
by lsc 9y ago
So, I've also been told that rich Chinese people were buying up condos and letting them sit empty.
That's the thing, though, I kinda don't believe it. I mean, sure, people from China buying US real estate; I can totally believe that one (and that would increase demand and thus put upwards pressure on sale prices)
The part I have a hard time swallowing is the idea that they'd let them sit empty. The real estate agent they bought from would be super happy to hook them up with a full service property mangement company that could deal with renting the things out; I'm sure said agent could (for a hefty cut, of course) set it up so the owner need not be bothered at all.
I mean... I guess there could be something I'm missing, but the idea of people buying up some of the most valuable realestate in the world and then letting it sit empty (and supposedly paying somene to come by and check on it, etc...) just seems really unlikely vs. buying and renting it out.
- maslam 9y agoIt's a thing in Seattle. One of my friends lives in a wonderful neighborhood in South Bellevue. Multi million dollar homes. At least 40% sitting empty.
- nikanj 9y agoIt's similar to owning a Ferrari, and then not actually driving it day-to-day. People don't want to suspect their priced possessions to wear and tear.
- daemin 9y agoExcept that unlike a car, a house can be rented more easily and income gathered rather than sitting empty. To rent out your Ferrari you'd have to run an agency and couldn't use it as you wanted to. Which kind of defeats the purpose of a luxury good.
- deleted 9y ago[deleted]
- jcl 9y agoI think it's more than just wear-and-tear... There are a lot of legal protections that make it hard to displace existing renters. Presumably most of these unoccupied homes are owned as rainy day assets, to either be sold or occupied in an emergency, and renters would limit this ability. (It's hard to find data on how prevalent this is... From one article, it looks like a Palo Alto realtor estimated in 2015 that about 20% of home sales were to Chinese investors, with about half of these leaving the house unoccupied: http://sanfrancisco.cbslocal.com/2015/04/28/realtors-printing-brochures-for-silicon-valley-homes-in-mandarin-to-attract-chinese-buyers/ http://sanfrancisco.cbslocal.com/2015/04/28/realtors-printin... )