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A positive feedback loop. Buy place, use money market corporate funds to buy, rate 1% or so....rent it out, yield = 3-5% Repeat 10,000 time over every month unt
by aurizon 5y ago
A positive feedback loop. Buy place, use money market corporate funds to buy, rate 1% or so....rent it out, yield = 3-5% Repeat 10,000 time over every month until you have all of everyone's $$ - in truth it will not get that far.
Tax the business of buying a property and renting it as an annual property tax. They also charge light, heat, water, condo fees to the tenant, so you need to ramp this down before it ruins the economy. It is an inverse parallels to the huge inflation in Germany in the 30's that ushered in the Nazi's
- m348e912 5y agoPart of why rent is high is because property is so high, plus you're taking on risk in the case of a correction. (not sure there will be one but it's possible)
- aurizon 5y agoYes, These corporate types will walk in a serious correction, decoupled from the effects, but still losing their equity. Individuals will lose their equity and may lose all assets - depends on the fine print in the mortgage what the mortgagee has signed. Too many people walked in the past 2 crashes, so banks etc put deep asset hooks in the print so walkers could get chased for all their assets(subject to prior mortgages) That is why lenders are getting warier as the peak grows higher. It is an analog of the past collapse, using capital pooling for purposes the sea of individuals never anticipated, and if and when there is a collapse it will create a new class of poor....