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Re: unsold condos, anyone want to try explaining how withholding stock makes sense? I understand flooding the market would depress prices further, but I don’t u
by majos 7y ago
Re: unsold condos, anyone want to try explaining how withholding stock makes sense? I understand flooding the market would depress prices further, but I don’t understand what market would buy up all this stock. If these units can’t sell in what seems to be a nicely growing market, isn’t it going to be a long time before they sell at all? Like, so long that just sitting on them and paying taxes doesn’t make sense?
- swagasaurus-rex 7y agoThe calculation: Prices will skyrocket from lack of supply more quickly than the taxes paid on the units. Development and renting it out locks you into contracts where you can't flip as quickly (low liquidity). So you don't develop or use the land, just wait for your investment to accrue.