If the existing investors have to sell at a loss because there’s no profit to be made, someone gets to buy them for cheaper, making it profitable again.
So the entire city will only be owner-occupiers? Sounds like almost everyone living in the city has their problems solved. The city can build more rent-controlled units.
If the existing investors have to sell at a loss because there’s no profit to be made, someone gets to buy them for cheaper, making it profitable again.
They’re not going to sell for less than what they can make off the property though, are they?
Then they’ll continue renting these properties at the new rates? Works too.
Until those properties slowly disappear from the rental market as they’re bought by owner occupiers.
Which is a problem if you can’t afford to buy a property.
So the entire city will only be owner-occupiers? Sounds like almost everyone living in the city has their problems solved. The city can build more rent-controlled units.