Subj : Re: Housing Market
To   : boraxman
From : poindexter FORTRAN
Date : Sat Apr 19 2025 04:47 pm

-=> boraxman wrote to Nightfox <=-

 bo> Not so.  In Australia they just leave the house empty.  Landlords are
 bo> often stupid and greedy.  These aren't sophisticated investors... I've
 bo> seen businesses move out, close up, because of high rents, then the
 bo> office/building stay EMPTY for months because of the insanely high
 bo> rent.

 bo> They just complain how unfair it all is instead of dropping their
 bo> prices.

 That happens in the US all the time - businesses move out, but the
 potential revenues for the lessee play into the collateral value.
 Effectively, the landlord can't reduce the rent from inflated, bubble
 values because that would trigger a collateral issue with the bank,
 since the collateral is no longer worth what it was when signed against
 the loan. The landlord would need to come up with additional
 collateral to continue the loan.

 Easier to keep it empty, hope for a sucker, take the tax write off and
 blame it on Biden, Trump, Obama, or the Chinese.



 
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