4 ms·
It’s unrealistic to project those incentives in to future years
by cannaceo 6y ago
It’s unrealistic to project those incentives in to future years
- vmception 6y agoIt’s realistic to use them as market signals for actual price discovery in the current year
- cannaceo 6y agoI’d wager the rent rate is necessary to cover the mortgage, homeowners policy, other insurance, and repairs. I don’t think landlords have 36% IRR on their investments. Rents at that large of a discount aren’t sustainable.
- beagle3 6y agoNo, they don’t have that IRR if their investments were made at 2019 market prices. They have more than that IRR even with all those expenses if they bought at 1980 prices. What’s unsustainable is the property prices of 2019 (and June 2020 because real estate asset prices are sticky). “Investment” is path dependent and is irrelevant to pricing for the market as a whole (it obviously does to a single player)