4 ms·
> Why are there so many cash buyers Simple, investors discovered that purchasing homes in a market limiting new construction, they can change what ever rent th
by jmclnx 4y ago
> Why are there so many cash buyers
Simple, investors discovered that purchasing homes in a market limiting new construction, they can change what ever rent they want. That provides a larger return than what the markets provide.
The only way out of this is if an entity owns say over 5 homes for rental income, property taxes should be increased on these homes to say 100% of value per year. It doubles with each 10 homes owned.
- foogazi 4y ago> they can change what ever rent they want They can’t - rent prices are set by the market Also in a high interest risk free rate of return is more appealing Why buy a house that can break down, not rent when you can park it in a bank
- klipklop 4y agoOwn enough homes in an area and you can control the market. The Econ 101 supply/demand theory does not work in the highly regulated (mostly to slow down building) housing market. People pay an irrational amount of income on rent all the time.
- xboxnolifes 4y ago> They can’t - rent prices are set by the market Landlords are part of the market.