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- Mar 24, 2009
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Rent control: A nightmare to avoid
With the prospect of higher price inflation coming, I`d like to bring up a potential risk of what might happen more often in some cities in the US and across the world, particularly in places with a more socialist view such as San Francisco.
To many investors in real estate, I`ve just stated the obvious in my title. All cities or countries that have implemented a rent control have ultimately destroyed the availability of good housing. Rent control has always been implemented only on residential housing, since the government doesn`t feel it needs to be involved in commercial real estate where the lease contract is between two businesses. But when it comes to housing, what better way to get more votes than to promote a new law that will freeze rent increases or limit their growth?
Read the full article here.
With the prospect of higher price inflation coming, I`d like to bring up a potential risk of what might happen more often in some cities in the US and across the world, particularly in places with a more socialist view such as San Francisco.
To many investors in real estate, I`ve just stated the obvious in my title. All cities or countries that have implemented a rent control have ultimately destroyed the availability of good housing. Rent control has always been implemented only on residential housing, since the government doesn`t feel it needs to be involved in commercial real estate where the lease contract is between two businesses. But when it comes to housing, what better way to get more votes than to promote a new law that will freeze rent increases or limit their growth?
Read the full article here.