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So the property is being occupied, which I don't think they have a problem with. The issue is wealthy investors are coming in, buying up property at above mark
by itake 8y ago
So the property is being occupied, which I don't think they have a problem with. The issue is wealthy investors are coming in, buying up property at above market rate, and then letting it sit empty and driving up the price higher since there is less sellers on the market.
- user5994461 8y agoDoesn't matter if it's rented or not, it drives the price up either way.
- ben_w 8y agoIf it’s rented out to a local or sold to a local, the ratio of buildings to locals is the same. Supply or demand (or things outside this context such was wages) has to change for prices to change.
- moorhosj 8y agoYou assume that the ratio of buildings to locals is the sole input for real estate prices. If an external rentier enters the market and realizes yield, other rentiers will follow. This increases demand for housing assets, not necessarily housing utility. this is the problem they are trying to solve.
- user5994461 8y agoForeign buyers increase the supply of cash. It drives buy prices up, which in turns drives rent up slightly.