Silver lining: if this vacancy tax is enough to make sitting a monetary loss, this will drive down rent prices as landlords will actually be incentive to rent out their properties, rather than sit on them for investment.
There aren't many places that are meant for rental, that are sitting empty. If there's already partial capacity met, they're not going to lower their prices just... because. And the ones that aren't meant for rental... aren't meant for rental. Opening it up to rental lowers its value SIGNIFICANTLY.
A landlord charging too much to get tenants is already making a monetary loss: They're losing money every month they're not collecting rent. Opportunity cost AND real costs like utilities they need to keep supplying.
Yeah, but that's already happening because interest rates have risen from ~0%.
The people sitting were doing so using low interest mortgages, they don't buy property outright. All it takes is a slight bump in rates and they start unloading.
Silver lining: if this vacancy tax is enough to make sitting a monetary loss, this will drive down rent prices as landlords will actually be incentive to rent out their properties, rather than sit on them for investment.
There aren't many places that are meant for rental, that are sitting empty. If there's already partial capacity met, they're not going to lower their prices just... because. And the ones that aren't meant for rental... aren't meant for rental. Opening it up to rental lowers its value SIGNIFICANTLY.
A landlord charging too much to get tenants is already making a monetary loss: They're losing money every month they're not collecting rent. Opportunity cost AND real costs like utilities they need to keep supplying.
Smells like redditor in that op comment
More like Louis Rossmann, as in NYC, there absolutely are wealthy people squatting on vacant areas
isn't 70% of nyc basically empty due to sky high rent for a building that is breaking every fire code besides being on fire
Yeah, but that's already happening because interest rates have risen from ~0%.
The people sitting were doing so using low interest mortgages, they don't buy property outright. All it takes is a slight bump in rates and they start unloading.