Property costs money to maintain. And it can only earn as much as someone is willing to pay for it, so if everyone’s poor they won’t pay enough rent to make up for the holding cost.
But they might be able to hope for the selling price in the future to be worth a lot, right? Unless it looks like they have to lock up their money in that investment, doing nothing, for a decade or more while other investments (stocks, bonds, etc.) do much better.
Investing in real estate is tricky, especially at scale. A mistake can cost a huge percentage of the investment, if not wiping out the investment on specific properties.
the inability to be able to rent it at a profit usually. If they don’t think they can get money out of it, they won’t want to. If the economy hits a point where the housing market collapses, chances are they aren’t going to want to risk the buy in knowing that they likely won’t be able to sell for equal amount.
Or the much faster method: the “scary” government regulating it
A lot of times they’re correct. Home maintenance is expensive, if it doesn’t get bought up and renovated it’ll just end up on an endless list of foreclosures.
During a collapse, what stops them from swooping in and buying up cheap property?
Property costs money to maintain. And it can only earn as much as someone is willing to pay for it, so if everyone’s poor they won’t pay enough rent to make up for the holding cost.
But they might be able to hope for the selling price in the future to be worth a lot, right? Unless it looks like they have to lock up their money in that investment, doing nothing, for a decade or more while other investments (stocks, bonds, etc.) do much better.
Investing in real estate is tricky, especially at scale. A mistake can cost a huge percentage of the investment, if not wiping out the investment on specific properties.
Bullets
the inability to be able to rent it at a profit usually. If they don’t think they can get money out of it, they won’t want to. If the economy hits a point where the housing market collapses, chances are they aren’t going to want to risk the buy in knowing that they likely won’t be able to sell for equal amount.
Or the much faster method: the “scary” government regulating it
I’m guessing there is enough profit for them to buy up inventory and bulldoze the houses to keep supply and demand where they need it.
Capitalist don’t give a fuck if you live or die, line must go up.
The belief that it’ll stay cheap and they won’t make money
A lot of times they’re correct. Home maintenance is expensive, if it doesn’t get bought up and renovated it’ll just end up on an endless list of foreclosures.