Kooiker - 2/21/2024 20:31
coup - 2/21/2024 19:46 When you can get a higher ROI from cash,land rents are being subsidized by land owners plain and simple.
The denominator used in your ROI calculation is being artificially inflated by people willing to buy a horrible ROI.
The landowner is not owed or guaranteed a ROI = current CD rates. If they want CD rates, they can sell the land and put the cash in CD's.
The act of not selling and accepting a lower return than could otherwise be obtained by selling and buying the higher return investment, is in and of itself, subsidizing the tenant.