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> If housing is an unattractive financial asset, how are investors motivated to create housing? They say it should be unattractive to hold, not to build and se
by thomasahle 4y ago
> If housing is an unattractive financial asset, how are investors motivated to create housing?
They say it should be unattractive to hold, not to build and sell.
- glass3 4y agoIf it is not attractive to hold then there will be nothing to rent.
- aiisahik 4y agoI actually agree that it should be attractive housing management companies to own and manage property. If they do a good job they should see a good risk adjusted reward in their business. What they should NOT be doing is have a business model that is based on the capital appreciation of the land if they sell the property. This can be achieved by ensuring their cost to purchase is reduce by lower interest rates but the capital gains of the land are tax very heavily.