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Property developers (and the people who actually physically construct housing) provide places for people to live. Landlords simply buy/own those places. Those
by opportune 6y ago
Property developers (and the people who actually physically construct housing) provide places for people to live. Landlords simply buy/own those places.
Those are almost always different groups in practice though I’m sure you could contrive a counterexample.
A landlord provides about as much value to a consumer as a stockholder does to a public company. Economically the landlord-tenant interaction is primarily a speculative/investment/arbitrage relationship rather than a service
- afiori 6y ago> Landlords simply buy/own those places. Thus landlords are the one to actually finance those buildings. > A landlord provides about as much value to a consumer as a stockholder does to a public company. Which is a significant value, for a company (even if I would like more companies to be privately owned). In this model a landlord is how people can get access to housing without huge initial capital and/or long term commitment. A rent-based housing economy causes huge problems for those that want to buy an house (somilarly to how Airbnb/short stays cause problems for rent seekers) but this is not about one sector being parasites, it is about an imbalance in the market. the situation would not be better if landlords did not exist.
- tonyedgecombe 6y agoThus landlords are the one to actually finance those buildings. Actually it's mostly the banks that provide the finance, the landlord is an intermediary.