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My analogy. Someone purchased some land for $1. Built a house for say $100. And now spends $100,000 a year making it the perfect place to rent, receiving $100,
by quickthrower2 4y ago
My analogy.
Someone purchased some land for $1. Built a house for say $100. And now spends $100,000 a year making it the perfect place to rent, receiving $100,000 a year in rent.
Someone comes along and borrows $1m to buy that house. They feel ripped off but eventually are force to go ahead with the purchase. As a result they have to pay $100,000 a year in interest. They need this thing to be profitable!
To do this they need to cut back on the $100,000 a year spent. They decide go go in quickly and so email all the services saying "go hard or go home". So the plumbers, tradie, cleaners etc that don't like it leave.
As a side hustle also charge visitors to the house $9 to be allowed to wear their bowtie they used to wear for free.
Some of the people do maintenance jobs and improvements. They keep the termites out, fix subsidence issues, and so on.
And the house didn't fall down within 3 weeks of it being purchased.