alt Hacker NewsGovernment adds mountains of red tape, taxes employers to death and has reduced the spending power of the median worker to below poland through its plantation migration policy.
Commercial units sit empty instead of lowering rents because of the 'extend and pretend' in lending. The banks can't afford to revalue commercial real estate at the current market rate. It's like the 70s again.
Replies
epolanski • yesterday at 5:10 PM
What the hell are you talking about lol.
There's no design of anybody, red tape and taxes have always been there, but they are not a problem of many sectors, but commerce in particular in this period of time, and not just in Italy but globally.
You are right that the units sit empty because the banks have loan covenants with the landlords that minimum rent is XX, which is higher than the unit is currently worth.
It isn't so much extend and pretend, its landlord CANT lower the rent without violating their loan.
If you get government involved, this will just get more expensive. We need to wait it out until the landlord can't pay the loan anyway and is forced to sell the building at a massive loss. Then the new owner will have a new loan with a new price floor and the dance can start over.