2 ms·

Plus speculation. If it was driven by just those factors Ireland wouldn't have happened.

• Spooky23 10y ago
  That's more about cheap rates and access to capital. Very little speculative activity is financed by cash.
  • astrodust 10y ago
    It depends on your market. We're seeing a lot of Chinese capital (cash) being dumped into real-estate since it's seen as a cheap investment that produces good returns. In this bubble that house is appreciating at 17% per year or more. If you're leveraged you can get higher returns, but finding someone to loan you the money may be difficult. If you've got cash, just dump it on properties and let it appreciate.