the inability to be able to rent it at a profit usually. If they don’t think they can get money out of it, they won’t want to. If the economy hits a point where the housing market collapses, chances are they aren’t going to want to risk the buy in knowing that they likely won’t be able to sell for equal amount.
Or the much faster method: the “scary” government regulating it
Property costs money to maintain. And it can only earn as much as someone is willing to pay for it, so if everyone’s poor they won’t pay enough rent to make up for the holding cost.
But they might be able to hope for the selling price in the future to be worth a lot, right? Unless it looks like they have to lock up their money in that investment, doing nothing, for a decade or more while other investments (stocks, bonds, etc.) do much better.
Investing in real estate is tricky, especially at scale. A mistake can cost a huge percentage of the investment, if not wiping out the investment on specific properties.
During a collapse, what stops them from swooping in and buying up cheap property?
Bullets
the inability to be able to rent it at a profit usually. If they don’t think they can get money out of it, they won’t want to. If the economy hits a point where the housing market collapses, chances are they aren’t going to want to risk the buy in knowing that they likely won’t be able to sell for equal amount.
Or the much faster method: the “scary” government regulating it
Property costs money to maintain. And it can only earn as much as someone is willing to pay for it, so if everyone’s poor they won’t pay enough rent to make up for the holding cost.
But they might be able to hope for the selling price in the future to be worth a lot, right? Unless it looks like they have to lock up their money in that investment, doing nothing, for a decade or more while other investments (stocks, bonds, etc.) do much better.
Investing in real estate is tricky, especially at scale. A mistake can cost a huge percentage of the investment, if not wiping out the investment on specific properties.