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[–] 37 points 2 years ago (9 children)

Because they're over leveraged. They've purchased assets when rates were low and now that rates have gone up they haven't factored this into their profit margins and would either go under or not make enough.

It's disgusting. If you have enough money to play the game you should have enough money to live with the consequences and a tenant isn't your get out of jail free card for your shitty planning.

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  • [–] 11 points 2 years ago

    What is this? Making risky business decisions and getting both private profit and taking private risk? Get out of here you damn socialist! America is when the profits are privatized and the losses are socialised!

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  • [–] 8 points 2 years ago (2 children)

    Because they're over leveraged. They've purchased assets when rates were low and now that rates have gone up they haven't factored this into their profit margins

    Nobody forced them to make risky business decisions.

    This is the consequences of their actions and shouldn't be anyone else's problem.

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  • [–] 5 points 2 years ago (3 children)

    I don't understand. If they get a fixed rate at the time of purchase what difference does it make that rates have gone up?

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  • [–] 9 points 2 years ago (2 children)

    Very often these aren't traditional fixed-rate mortgages. That's what they probably have on their "primary" home, but when you're buying homes with the explicit purpose of using them as income generators, the landscape of available loans changes.

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  • [–] 4 points 2 years ago (1 child)

    Thank you for a very well explained response. Also in countries like Canada mortgage terms are redone every 5 years on average making us much more susceptible to rate changes than in America.

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