4 ms·
IMO you have this backwards. It's much easier to get a mortgage to buy property in sleepy suburbs, so people can and do buy houses there to live in them, then h
by joe_fishfish 8y ago
IMO you have this backwards. It's much easier to get a mortgage to buy property in sleepy suburbs, so people can and do buy houses there to live in them, then have to commute to work.
It's almost impossible for most people working in soulful / desirable / economic powerhouse locations to get a mortgage on a property there, so you see lots of wealthy investors take up the properties there and rent-seek to make themselves even richer.
That's before we even mention the children factor.
- coredog64 8y agoRent-seeking as an economic term doesn’t just mean that someone buys property with the intention of renting it out. It also has the requirement that the “rent seeker” then employs a social or political power structure to force users/customers into renting with no benefit. I’m not thrilled about renting, but neither do I want to gamble on purchasing housing in an expensive market when I may have to leave my job or even the state. My landlord is taking that risk with her capital and therefore deserves to be rewarded for it.