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> By that time, the money will have moved on the the next thing, and we’re all stuck with the mess. What mess would that be? A wealth of cheap condos in a mark
by geezerjay 8y ago
> By that time, the money will have moved on the the next thing, and we’re all stuck with the mess.
What mess would that be? A wealth of cheap condos in a market flooded by companies liquidating their investment?
- mywittyname 8y agoYou still have to pay to maintain them, and expensive high-rise condo maintenance sets a natural floor for rents.
- Spooky23 8y agoBankrupt condo associations and people with underwater mortgages walking away. For the rental units, the profits tank, so the landlords tighten the screws on opex, and they aren't "luxury" anymore. You may recall 2008, when this phenomena happened with single-family homes. Condos are much more fickle investments.
- Scarblac 8y agoNote that in the Netherlands you can't just "walk away" from a mortgage. If the bank sells your house and the yield isn't enough to pay for the mortgage, you're still on the hook for the rest. After 2008 the housing market just more or less closed down. Nobody was selling as their mortgage was under water, so they just stayed where they were.