Money-laundering oligarchs bought all the real-estate to clean their oil money

Re:Money-laundering oligarchs bought all the real-estate to ... by aristophenes on Tuesday January 29, 2019 @05:42AM (#19025322)

My point is not about foreign investment driving rents up or down, it is that this is a poorly written article. I generally agree with what you are saying, though your logic is somewhat flawed in your first point. Every property that gets turned into a rental on average changes one home owner to a renter but also adds a new rental to the market so in principle it’s a wash. However as I’ve stated now for the third time, I acknowledge that properties bought as investments without renting them out will increase rents.

What I have been saying is that the actual article doesn’t make that point, and therefore doesn’t make sense. Even if foreign investment drives up rents, a reasonable person without their own experience would not be able to conclude that from the information in this article.

Furthermore, I believe it is HN policy to assume the strongest argument of the person you are debating if you choose to disagree. Instead you are continuing to mischaracterize what I am saying.

Please don’t explain to me how it works in real life again, I am aware. I do agree that over the short and medium term some types of real estate investment will raise rents.

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Re:Money-laundering oligarchs bought all the real-estate to ... by boombust on Tuesday January 29, 2019 @11:07AM (#19027429)

I agree with you that it is not a particularly polished article. However, you were basically saying that rents would decrease as a result of market forces, which is not really true as property markets can't react fast enough to match changing demand year on year.

You do have a point with your criticism of my arguments. I don't think I did a good job making the arguments as the issue that arises with renters not moving onto the properly ladder is closely linked with empty properties. Yes, a sold home becomes a rental in principle. But if it is slow to come onto the rental market or is kept empty then the supply for rentals decreases and the demand for rentals doesn't decrease accordingly, exacerbating the problem. So you are completely right that by itself it shouldn't matter much. You are correct that the problem arises when landlords are not too bothered by renting, which is a common feature in real estate money laundering.

[ Parent | on HN ]