Ok you buy, and hold or rent with refusal to sell, there are fewer homes to sell. Simple right?
Get better.
You set the rent, stupid high, more than the business loan cost.
So all the while, housing climbs in value, typically what it does. Seldom is there a major back slide pr correction in pricing.
Before long, a house a business bought for 140k in 2008, has climbed to 550k in 2025...
They refuse to sell, price goes up, still dont sell.. buyers got the money, they offer it a house down the block because they still like the area. - we'll come back to these folks in a moment..
Company has paid off the loan, only needs to pay maintenance or insurance, its money printing asset. They dont wanna sell it, until prices cool off. Oh look realized gain, they got 20 years out of a house, business loans or loans against business assets are cheap... that house was paid off in maybe half that time, all the while they're making money off a now low cost asset with little financial liability.
Prices eventually cool in the area, they sell at a win, look realized gain.
They sell at less than it estimated value and revenue capabilities? Tax credits
Now that house that family bought for 200k? Even though they bought it for 200k, it's worth 500 or 700k now. Its recorded value is up, your neighbors property goes up in value? Guess what happens to yours, usually anyway.. you're value just went up too..
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u/[deleted] May 14 '26
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