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Negative Yield Bonds = Empty Houses
So much talk about negative yield bonds got me thinking
Are empty houses the retail version of those bonds for overseas investors?
$3M house on my street used for Ferrari storage, no one has lived there in 7 years
Assume no mortgage
2/
So much talk about negative yield bonds got me thinking
Are empty houses the retail version of those bonds for overseas investors?
$3M house on my street used for Ferrari storage, no one has lived there in 7 years
Assume no mortgage
2/
/2 total cost to store this $3M asset = property tax and minimum utilities
Call it $25K per year or just under 1% of asset value
Hey it's not 20 bps but this is retail after all
No rental income = virtually no tax filing info, it becomes a zero taxable income return
3/
Call it $25K per year or just under 1% of asset value
Hey it's not 20 bps but this is retail after all
No rental income = virtually no tax filing info, it becomes a zero taxable income return
3/
/3 and zero taxable income = very low profile which some of the party members and Colonels involved think is really beneficial
Maybe well worth the 0.75% negative yield
The cost of safely storing the asset
It's the new version of the old Swiss Bank Account
4/
Maybe well worth the 0.75% negative yield
The cost of safely storing the asset
It's the new version of the old Swiss Bank Account
4/
/4 That is before other countries brought an end to Swiss banking secrecy
Just 2 disadvantages to empty houses:
They distort the local real estate market (who cares says the owners)
And you have to cut the grass or you get a work order (damn, the University kid hates work)
Just 2 disadvantages to empty houses:
They distort the local real estate market (who cares says the owners)
And you have to cut the grass or you get a work order (damn, the University kid hates work)
