If someone's selling a building that's been vacant for several years. Why not just lower the price...

If someone's selling a building that's been vacant for several years. Why not just lower the price? What's capitalism's problem?

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>Forcing people to buy high sell low.

That's the problem.

Wow I never saw it this way.
Thanks bought 100k.

What's capitalism's problem? They'd honestly rather have a house be vacant for decades than have someone live in it for a cheap price.

People who pay low for rent are the type that break shit and cause more trouble than they're worth

What free market? Ever heard of freddie and fannie? We have an artificial, federally backed, too big to fail, secondary mortgage market.
This real estate situation wouldn't exist without it.

Probably back taxes

>Why not just lower the price?
People asked this exact question during the recession. The problem is that the majority of these homes were owned by banks that foreclosed. From the banks perspective there is no benefit to lowering the price of the home. They can easily wait it out.

That image literally wouldnt happen in free market capitalism, simply because it doesnt make economic sense, the owner of the houses would rather rent them at low prices, because a small amount of money is still higher than no amount of money.

This happens in a economy where there is heavy state intervention though, google chinese ghost cities and it's exactly this scenario.

By the way, fuck Keynes, he fucked up the free market so much that whenever state intervention fucks up an economy, capitalism gets the blame.

>The problem is that the majority of these homes were owned by banks that foreclosed. From the banks perspective there is no benefit to lowering the price of the home. They can easily wait it out.

They didnt lower the prices because government bailed them out, so they could comfortably wait it out. See, it's state intervention that fucked up the prices again. Dont blame capitalism for the consequences of the state interfering in the economy.

Realtor here.

They do lower the price. Usually after 30 days.

Exactly. There's a bunch of Volunteers of America sponsored housing in a certain part of my city, and they have to micromanage all the people that live there because they don't give a shit. There's cameras fucking EVERYWHERE, and there's just an insane amount of rules posted all over the place. When you don't earn it, you don't care about it.

The people that own the houses are retarded. Problem is you have all of these entitled boomers that are holding out for some imaginary buyer that's going to come along that doesn't exist and buy the house at some insane price. There are only so many Chinese people trying to hide their money. It doesn't matter how much you "think" your home is worth. If no one is willing to pay your asking price, you won't get it.

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Except it’s not like that.
People rather not rent their houses because they’re after speculation.
I know people who own 5 houses and rent none.
Instead they’re putting one for sale 70% higher than what they bought it for 2 years a go.

Sydney breh.

someone living in it for a cheap price may be more expensive than having it vacant for decades, as homeless people can completely wreck a 10/10 house in a small ammount of time.
also when you sell to a homeless you are reducing the value of all other houses around and thats like shooting yourself in the foot, as you may never be able to sell it for a high price and also leave other people bagholding unvaluable properties

This guy gets it. However, the financial institutions did lower the prices, but there were very few buyers. This comic is basically saying that the banks should put up all the homeless people for free in these empty houses.

Thats okay, because it means there is demand for the price he is selling them (if there isnt, then he misjudged the demand and will obviously lower the price, if he is stubborn about the price he will either never sell or wait until demand reaches his selling price).

What im criticizing is the image, because it shows an idea where there is a lot of demand for cheap houses, no demand for expensive houses , and thinking this situation will remain this way. When, in reality, it will go towards an equilibrium, where people will actually be able to afford those houses.

Banks aren't retards, they are there to make money, they need people to buy things and to have decent wages to do so.

Did you know, that leisure time was invented so people would have free time to buy things they didnt really need, but wanted? And thats a good thing, jobs are a mean, not an end in itself.

Try living in Canada where we've invited an unlimited amount of Chinese money launderers to come and buy up housing in a small number of urban centers. Money launderers don't give a shit if the house gains or loses value or whether or not it sits vacant.

They still property taxes which go towards your welfare payments.

This. It's fake capitalism.

>This comic is basically saying that the banks should put up all the homeless people for free in these empty houses.
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GIBS
ME
DAT
>also, sick digits, bro

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No such thing as a free market except in places like Singapore or Switzerland. The state washing up debt for banks is your problem here, if the banks had to pay for their missmanagement they'd have sold most of their properties 10 years ago.