Let me tell you how it works in the real world right here right now in the UK. Large corpos set targets on how many rentals they want to acquire. For example, Lloyds announced a few years ago that they’re building a portfolio of 50k properties. Yes, fifty fucking thousand homes!
And so small landlords are forced to sell due to changes in the law. Corporate investors buy them in an instant at full asking price or even higher to ensure that property value doesn’t go down and so you, a mere mortal, can’t buy shit.
Next, they freeze the properties and don’t release anything on the market. That creates an insane housing shortage and rental prices go through the roof. A few years later they will start introducing their portfolio to the market slowly to avoid crashes at 2-5x price compared to just last year. People are desperate and pay through the nose.
Boom! Mega profits! What is your 3% yearly cap when they just jacked up the price five times? It will take many years to make a dent.
You know what would help against that? regulating how much property a company can acquire in an area. within a certain timeframe. Or regulating that the land tax and similiar things go up after having say more than a hundred or a thousand properties.
Let me tell you how it works in the real world right here right now in the UK. Large corpos set targets on how many rentals they want to acquire. For example, Lloyds announced a few years ago that they’re building a portfolio of 50k properties. Yes, fifty fucking thousand homes!
And so small landlords are forced to sell due to changes in the law. Corporate investors buy them in an instant at full asking price or even higher to ensure that property value doesn’t go down and so you, a mere mortal, can’t buy shit.
Next, they freeze the properties and don’t release anything on the market. That creates an insane housing shortage and rental prices go through the roof. A few years later they will start introducing their portfolio to the market slowly to avoid crashes at 2-5x price compared to just last year. People are desperate and pay through the nose.
Boom! Mega profits! What is your 3% yearly cap when they just jacked up the price five times? It will take many years to make a dent.
You know what would help against that? regulating how much property a company can acquire in an area. within a certain timeframe. Or regulating that the land tax and similiar things go up after having say more than a hundred or a thousand properties.
This is arguments for regulation not against it.
Land tax would be grand!