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In theory, the market should push owners to rent when prices stabilize. Eventually. In the meantime, it's possible that some foreign investors don't care too mu
by iforgot22 2y ago
In theory, the market should push owners to rent when prices stabilize. Eventually. In the meantime, it's possible that some foreign investors don't care too much about the opportunity cost.
I think some kind of vacancy tax is the only good way to fix this if it's a real problem.
- WalterBright 2y agoVacant property is quite a drain on one's pocketbook. Try it some time. When I move and sell the old house, I underprice it to sell it as fast as possible. The other sellers do not seem to understand the time value of money, the maintenance cost, the taxes, the vandalism, and the squatter risk. Oh, and your insurance goes up if the house is vacant. And never mind having $800,000 or so tied up as a millstone around your neck when you could be investing it in stocks.
- iforgot22 2y agoGenerally yeah, but idk what it's like in Spain. If the gains are huge or the renters' protections are nuts, it could theoretically make sense to keep vacant. If there isn't high vacancy in Spain, this is moot