Comment on @jack_toohey on why the housing crisis is not caused by migration

• null_dot@lemmy.dbzer0.com ⁨1⁩ ⁨day⁩ ago

  Why would you buy a home and not rent it out?

  AirBnB isn’t helping but it’s well established that it’s not a significant driver of the problem.

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  • Steve@startrek.website ⁨1⁩ ⁨day⁩ ago

    If its just a speculative asset to be traded back and forth you dont want the extra hassle of managing renters.

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    • null_dot@lemmy.dbzer0.com ⁨1⁩ ⁨day⁩ ago

      Houses aren’t a speculative asset like shares or gold. They take time and effort to sell, and it’s costly.

      Point is, you wouldn’t intend to sell in less than several years. Rent might be $50k a year. No investor is leaving that on the table.

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      • eureka@aussie.zone ⁨1⁩ ⁨day⁩ ago

        I had a quick search, this isn’t something I’ve properly looked into, but empty homes are valuable:

        Speculative real estate investment can lead to homes being left vacant for quite long periods of time, as in some cases this helps to preserve their condition for resale and saves the investor from having to shell out for upkeep and maintenance. In cities with high-value real-estate like Melbourne, Sydney, New York and London, housing prices have risen much faster than wages, and many investors know that simply buying and holding property can be a more effective investment strategy than buying to rent. As Karl Fitzgerald of the Australian non-profit Grounded Community Land Trusts and member of GEHN notes:

        ‘If you consider that there’s been an 18% increase in Australian property values this year, that’s triple the rent you could make, so why bother renting it out?’ (GEHN 2022)

        Jack Portman - “What is the value in an empty home? A perspective from Action on Empty Homes and the Global Empty Homes Network” www.tandfonline.com/doi/…/13604813.2024.2390754#d…

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  • glimse@lemmy.world ⁨1⁩ ⁨day⁩ ago

    What generally happens to prices when there’s a high demand and a low supply

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    • null_dot@lemmy.dbzer0.com ⁨1⁩ ⁨day⁩ ago

      That would only work if you owned every house.

      Like if you buy a house, why would you forego the rent income just so everyone else’s rent increases?

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  • Nalivai@lemmy.world ⁨1⁩ ⁨day⁩ ago

    Why do they get all the money and not buy anything with it? Billionaires are horders, they don’t use what they hoard.

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    • null_dot@lemmy.dbzer0.com ⁨1⁩ ⁨day⁩ ago

      Billionaires dont leave their billions sitting in a bank. Of course they buy things with it.

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      • Nalivai@lemmy.world ⁨1⁩ ⁨day⁩ ago

        They demonstrably don’t. They “buy” assets and stocks and some shit, but that’s just another form of hoarding the money. They don’t buy things, there is not enough things in the world to buy for them, and that’s not what they’re after. Elongated Muskrat bought a fucking twitter for an inflated price, and he’s still a richest motherfucker in the world.

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