London in the age of big finance – why do property investors leave their purchases empty?
I want to ask you to play a little game with me. I want you to pretend you are being driven to Dalston Junction in London to look at one of the penthouse flats on the twelfth floor of a new development to decide if you are going to buy it for £2.5 or £2.4 million. You have an inheritance of £20 million pounds. You buy it, but decide to leave to leave it empty – so – why would you leave it empty?
Why not get a letting agency to fill it with tenants? After a year you could evict them with just two months notice. Why not make a little ready money as well as enjoying seeing your capital appreciate? You don’t pass over any other opportunities to make money. So, why do you – and so many people like you – leave the flats in London that your purchase empty?
For one possible explanation listen on: