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Renting: Can bidding wars be stopped?
(www.bbc.co.uk)
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this post was submitted on 05 Dec 2023
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If they ban bidding wars, landlords will raise the listing prices above what they think it’s worth.
Then next year we’ll be hearing about empty apartments with crazy asking prices.
Some people would rather earn no money than some money. It’s weird and what happens commonly in Buenos Aires. I think it might be the sunk cost fallacy.
For investment property, the rent determines how much you can borrow against the property.
Long term it’s sometimes better to leave empty for a while than take the valuation hit.
Is "a while" 5 - 10 years? We're not talking about leaving it open for a season, but rather for years and years on end.
You'll more likely end up with a Dutch auction situation, where they start high and slowly drop the price until someone takes it.
Eh, I doubt it. Let them try.