Barcelona is forcing the landlords to find tenants. Else the property will be redeployed as affordable housing.
Rental versus good rental
If you own a property, would you want to rent it out at a good monthly rental? I am sure you would love to. Then, why are there some people who are not willing to rent out their properties? Actually, it’s not always easy to rent out the property at a good monthly rental yeah. Sometimes, the tenant may not be whom you want to. Here’s an article on how to check out the tenant too. 10 things to think about when choosing the tenant
Owner may be that stumbling block
Sometimes, the owner may also be too wealthy and does not bother to rent out their property too. This meant that there are empty properties and when there are empty properties and the existing demand for rental properties are higher than what’s available, then the rental goes up. It’s just a question of demand and supply. In Kuala Lumpur, I think the rental is under pressure simply because there’s a lot of new supply but the demand has yet to reach that level. In some places like Barcelona, many need a home. So, what is Barcelona doing to ease the pressure on supply of properties for rental?
Article in thelondoneconomic.com Barcelona’s city housing department wrote to 14 companies that collectively own hundreds of empty apartments and warned them that the city would take possession of the property if they haven’t found a tenant within the next month.€90,000 and €900,000. (RM443,000 – RM4.3 million)
Many of these homes were left empty by the companies while waiting for the market to recover. In fact many times, these properties were seen as an asset rather than as an essential public resource. This situation is similar in London and in 2018, it was found that there were 22,000 homes set vacant. Do read the full article here: Article in thelondoneconomic.com
Lucky, for now
There are no signs that Malaysia will be doing something like Barcelona yet. So, home owners who left their units empty do not need to worry yet. However, if you own a property, do think of renting it out versus leaving it empty yeah. The government may just be introducing the vacancy tax targeted at developers and it is said to be potentially starting in 2021 too. If this happens, the natural progression is of course to move on to home owners too.
How to decide to buy?
Many years ago, someone asked me how should they decide to buy or not to buy an investment property. I told them to look at rental first before deciding whether the price is worth it or not. I wrote an article about it too: Look at potential rental first, then the price. Remember yeah, Malaysia is not the first country to take such ‘taxing’ action. Happy understanding before you start buying that investment property.
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