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Not sure you get it. It’s not about who wants to live where. It’s about who wants to add an investment in a location that they will subsequently rent out (proba
by r00fus 3y ago
Not sure you get it. It’s not about who wants to live where. It’s about who wants to add an investment in a location that they will subsequently rent out (probably through a property management service).
It doesn’t matter if it’s a luxury condo near Central Park or a studio in a college town. Foreign and corporate investment demand will massively exceed the supply available anywhere.
And as non-resident investors own a larger piece of the market, they can raise rents to unlivable rates - forcing more homes to be built, etc.
- ProfessorLayton 3y agothat’s not how investing works. they don’t buy assets just because they feel like it, but because they expect a return — and the reason they’re buying real estate is because there’s a nice return due to imbalanced supply and demand. if housing is plentiful enough that the returns are low, investors will look elsewhere.