Someone mentioned that for accounting reasons property portfolios may be better sitting empty than offering tenants a discount because their yields look bad?
In: Economics
Plenty of poperty owners can afford mortgage payments just fine without tenants, or more likely, they bought the property outright with cash. Having assets like property is a good way to hold onto your wealth for a long period of time. Banks usually encourage wealthy clients to purchase commercial properties and make it very easy and quick for them to do so even if they have no real desire to use the buildings.
Having tenants and being a landlord is a massive headache. The people who own commercial properties aren’t trying to make money but just hold onto the wealth they already have. The rent that they would make would be like pocket money.
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