IMO all depends if they are buying with cash or with mortgage. Investment mortgages should only go towards new housing, not compete with existing.
Arguable all housing investment should go into new housing, not competing.
Arguable all housing investment should go into new housing, not competing.
why can't it go into new housing via a chain of financial transactions, rather than directly? In other words, it doesn't matter what the "new" money is invested in - as long as new construction rate is keeping up.
So if it's not, then where's the problem? Why isn't that root cause being addressed, instead of trying to mandate how investors want to invest?
Also that would incentivise investors to build up as that improves their profit margin if it's rentals.