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Originally Posted by ASU2003
Why don't they lower the price until someone can afford it? There are people working that can't afford houses or condos, but this just sounds like a way to get a free house.
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Because the owners know that in time (maybe years) the price will bounce right back.
Say you bought a house for $50k in the 90s.
Last year it was worth $250k.
That's $200 in your pocket.
Bu today it's empty and you'd have to drop th price to $100k to clear it.
You know that in 10 years time it'll be worth $300k.
Why sell now at a "loss" of $200k investment income?
Under English law, if squatters move in and stay, they get rights to rent or even OWN the place after certain durations, so keeping it vacant and policing that could well be your pension fund.
You sell it cheap to help the homeless you can be sure the homeless aren't going to help you during your now unfunded retirement.