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It's a very typical pattern in speculative finance
by dubliner9039 8y ago
It's a very typical pattern in speculative finance
- nizmow 8y agoAlso happens a lot in Sydney, for the same reasons.
- agent008t 8y agoIt kind of makes sense if the apartment is more valuable as new than as having been rented out before. But I do not think that is the case in Dublin. Even if the apartment prices are rising rapidly and you plan to sell the apartment once the price goes up - why not also collect rental yield while you are waiting?
- maxxxxx 8y agoRenting out something is a lot of work managing things. Much easier to keep it empty.
- throwaway29319 8y agoNot only that, but every empty apartment contributes to pushing up the prices by being empty. Then, when the prices hit peak value in a decade or two the investors might sell and keeping the apartment empty was more effective than renting it.
- iguy 8y agoBut you can have an agency manage it for you, for about 10-15%, in any city. Keeping it empty long-term means leaving on the table an amount of money comparable to the mortgage. You could fill it and buy another one! If they both appreciate, all the better.
- maxxxxx 8y agoAren't a lot of these real estate investments about safely parking money and not about chasing profit?