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Buying or building property with the sole purpose of lending it out is an investment, a gamble, a calculated risk. Same scenario but smaller scale: an individu
by Tsiklon 5y ago
Buying or building property with the sole purpose of lending it out is an investment, a gamble, a calculated risk.
Same scenario but smaller scale: an individual purchases a domestic property with the purpose of renting it out as accommodation. Due to unforeseen circumstances the area becomes undesirable and they become unable to rent the property, what happens?
They go underwater on the mortgage. The landlord doesn’t get bailed out, they have the property foreclosed on by the lender who goes to recoup some of _their_ investment.
Why should office landlords be treated preferably in this case? This is the risk involved in being a landlord; It’s not a guaranteed money spinner.