3 ms·
IMO all depends if they are buying with cash or with mortgage. Investment mortgages should only go towards new housing, not compete with existing. Arguable all
by dzhiurgis 5y ago
IMO all depends if they are buying with cash or with mortgage. Investment mortgages should only go towards new housing, not compete with existing.
Arguable all housing investment should go into new housing, not competing.
- chrisgd 5y agoThey pay cash then package all rental income into a new security sold to institutional investors
- dzhiurgis 5y agoSounds like those properties are ripe for some squatters then
- chii 5y ago> Arguable all housing investment should go into new housing, not competing why can't it go into new housing via a chain of financial transactions, rather than directly? In other words, it doesn't matter what the "new" money is invested in - as long as new construction rate is keeping up. So if it's not, then where's the problem? Why isn't that root cause being addressed, instead of trying to mandate how investors want to invest?
- dzhiurgis 5y agoBecause new housing is typically more expensive than old. And banks usually don't wanna finance you. So you are doubly out of luck and on top of that compete with property investors. Also that would incentivise investors to build up as that improves their profit margin if it's rentals.