• @[email protected]
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    375 months ago

    Because they’re over leveraged. They’ve purchased assets when rates were low and now that rates have gone up they haven’t factored this into their profit margins and would either go under or not make enough.

    It’s disgusting. If you have enough money to play the game you should have enough money to live with the consequences and a tenant isn’t your get out of jail free card for your shitty planning.

    • @RememberTheApollo_
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      185 months ago

      Ok. So they’re playing the old game of leveraging assets (properties) to buy more and painting themselves in a corner because of rates. Well, fuck these serial buyers squeezing the market. Hope they do get forced to sell.

    • @[email protected]
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      115 months ago

      What is this? Making risky business decisions and getting both private profit and taking private risk? Get out of here you damn socialist! America is when the profits are privatized and the losses are socialised!

    • @[email protected]
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      85 months ago

      Because they’re over leveraged. They’ve purchased assets when rates were low and now that rates have gone up they haven’t factored this into their profit margins

      Nobody forced them to make risky business decisions.

      This is the consequences of their actions and shouldn’t be anyone else’s problem.

      • @TrueStoryBob
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        55 months ago

        Nobody forced them to make risky business decisions.

        Exactly… you want to make a nearly risk free investment? Try a long term bank deposit or invest in government bonds.

    • @crystalmerchant
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      55 months ago

      I don’t understand. If they get a fixed rate at the time of purchase what difference does it make that rates have gone up?

      • @WoahWoah
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        95 months ago

        Very often these aren’t traditional fixed-rate mortgages. That’s what they probably have on their “primary” home, but when you’re buying homes with the explicit purpose of using them as income generators, the landscape of available loans changes.

        • @[email protected]
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          45 months ago

          Thank you for a very well explained response. Also in countries like Canada mortgage terms are redone every 5 years on average making us much more susceptible to rate changes than in America.

          • @[email protected]
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            15 months ago

            That’s pretty disgusting. Would do nothing but make you move every five years, and banks are going to screw you over every five years.