News for hackers. Stuff that matters.

A comment on Algorithmic price-fixing of rents is here. Parent comment

Re:Algorithmic price-fixing of rents is here by pnw on Saturday August 10, 2024 @09:14PM (#41213334)
My understanding was that debt servicing drives some of the rental price, which is why they can seem irrational in the short term and are not discounted in order to protect the debt coverage ratio of the building. A low ratio can trigger a technical default on the loan by the bank.
[ Parent | on HN ]
Re:Algorithmic price-fixing of rents is here by klipklop on Saturday August 10, 2024 @09:30PM (#41213392)
This is exactly why. Also why most commercial real estate sits empty forever. To lower the rent would effect the loan and estimated (bullshit) value of the building.
[ Parent | on HN ]
Re:Algorithmic price-fixing of rents is here by HeatrayEnjoyer on Sunday August 11, 2024 @01:52AM (#41214235)
Why even care or measure value in that manner? Seems like an obvious bad idea.
[ Parent | on HN ]
Re:Algorithmic price-fixing of rents is here by amanaplanacanal on Sunday August 11, 2024 @05:54AM (#41215100)
The value of an asset is the return you can get on it. It’s just that in this case the return is a matter of opinion.
[ Parent | on HN ]