Property developers asking for bailout funds!? You've gotta be kidding me!
Best Answer
904 points
jillybeansisme answered 11 months ago …
I personally feel that the bailouts are preposterous. When I was laid off from my job, NOBODY bailed me out because I wasn't in foreclosure. I couldn't even get food stamps because I had the audacity to have some savings.
I think bailouts simply will put a bandaid on the problem rather than fix it. I think that it is okay for the companies whose business practices were poor to fail. Let them fail and then there will be more room for companies who use good business practices. Our economy will eventually become better.
It is like a pendulum. It swings one way and then the other. Eventually it will settle in the middle and the strong will survive.
Answers
4085 points
EthanR answered 11 months ago …
Anybody can ask, the question is will they get anything? I seriously doubt it. By the way, during the period of time between 2003-2006, nobody on the face of the Earth was more haughty, more arrogant, more full of themselves, than the property developer companies. They wouldn't budge an inch on price, nor deviate from their floor plans and features one iota. They literally would say to Realtors (including myself on one occasion), "If they (customer) don't like such and such, we have three families waiting outside who will".
Compare that with today, when they practically beg for business, will negotiate on price and features, and treat Realtors like kings and queens when we walk into their office. For me, if there was anything good about the real estate down turn, it was the come uppance that the developers got. Their stocks were trounced and many went out of business. Bailout? No way!
2222 points
readytoretire answered 11 months ago …
The commercial property developers are the ones asking/talking about needing money. As they have normally been in the borrow short term and invest long term, they find themselves with big loan amounts coming due almost every year, and while they have the income to cover the interest and principle payments, they can't cover repaying the loan. And the only other choice would be to sell some of the malls or commercial buildings they own, but no one is buying. And so the few on the market are going down in value, just like the houses have done. Their position is that they wouldn't need to sell if the finance market was working, so they could just roll the loans over.
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3963 points
MNSL answered 11 months ago …
Property developers should not bail out at any cost.
They mismanaged the their businesses without considering risk factor
They have made banks, financial institutions etc totally bankrupt
They have misused public money.
In some cases public lost their entire money including retirement savings.
They also should take responsibility in creating bubble real estate market
They should have developed property when production cost is low.
If policy makers decide to bailout they should bailout innocent parties who got caught to this property mania.
Those who pump and dump in the real estate sector should not bailout.
Of course there are few good house owners they do not want to increase their rent. But some real estate agents want to increase rent in some countries due to lower commission.
However even rent market is crashing globally now. I think rent prices could come down by more than 50% sooner than later.
Even banks have not advised clients properly on interest rate.
We cannot think of long term sustainable growth in world economy by investing in non productive areas such as property. If we do some research globally we can learn some good lessons now.
132 points
imgamekc answered 11 months ago …
If you think that is a silly request, just go thru and find out what retailers like Walmart gets as far as tax breaks, that is another joke. TIFF, Tax increment financing has been around and abused for years by big developers. They hold the idea of small tax benefits from the sales in the area hostage to their needs for tax development dollars.. or threaten to move the project. I doubt there will be any money given to those who have overdeveloped but heck with the great tax dollar give away who knows
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