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"Only housing" means a rental of a flat to live in for a fixed term. It's a consumption good. Buying property is a speculative investment. Similarly, buying an
by yummyfajitas 11y ago
"Only housing" means a rental of a flat to live in for a fixed term. It's a consumption good. Buying property is a speculative investment.
Similarly, buying an iPad is consumption while buying AAPL is investment.
- ZenoArrow 11y agoI don't understand what you mean by '"Only housing" means a rental of a flat to live in for a fixed term.'. Are you referring to investment in the rental market?
- yummyfajitas 11y agoI'm referring to consumption of housing. Renting a house to live in with no prospect of reselling it. You are discussing the purchasing of a long term stream of housing with the prospect of resale at some future point.
- ZenoArrow 11y ago> "I'm referring to consumption of housing. Renting a house to live in with no prospect of reselling it." If you rent then you don't have the rights to sell, renting a property isn't an investment anywhere in the world (as far as I know), how is that different in NYC and SF? Is this some sort of freehold/leasehold issue (leasehold may be a UK-only arrangement, not sure if it exists elsewhere)?
- yummyfajitas 11y agoIn NYC and SF, you can't generally rent for a fixed term: "Can my landlord evict me and use my stabilized apartment for his or her family, and how many apartments in the building can the landlord take? One of the advantages of being a rent stabilized tenant is the statutory right to renew your lease." http://www.nycrgb.org/html/resources/faq/rentstab.html http://www.nycrgb.org/html/resources/faq/rentstab.html Once you lease a unit you essentially hold weakly transferable long term property rights to the unit. You also own, via local zoning regulations, the partial right to prevent neighbors from doing new things with their property.