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>Is ok as long as landlords are building new property and not competing with existing stock Think about the reasons why you rent an apartment. One is that you
by vba616 4y ago
>Is ok as long as landlords are building new property and not competing with existing stock
Think about the reasons why you rent an apartment.
One is that you can't get a mortgage.
Another is that you can't assume you will stay in the same place for a long time. Buying and selling real estate is extremely expensive.
Another is that you can't afford sudden large maintenance expenses like a new roof or whatever.
These are the biggest three that come to my mind.
If these reasons for renting apply, then anyone who converts a property to a rental is increasing the supply available to you. Even if it's not newly constructed.
- dzhiurgis 4y agoAnd you can't get mortgage because... landlords with enormous leverage bid against each other, jack up rental costs and you are left with even less for mortgage. I do like mobility tho - I've lived in 4 countries, 10+ properties, all rental. Unsure where is the right balance is tho. Banks in NZ won't let you develop property unless you already own land, so it's out or reach for first timers. IMO it's fair if we redirect investor capital into new developments.