I often see a rather ridiculous sounding claim that new residential developments can be built and not rent any units and somehow that’s still profitable for developers and the real estate owners. I saw someone specify that REITs don’t pay taxes, and because of that they don’t have to sell or rent any units because the value is tax exempt. This just… doesn’t seem to make any sense. How can a building be built and make no profit off rent/sales and still be profitable?
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