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The way this is achieved is by making sure that there is never a housing shortage, by building enough to keep the prices low. It's never an investment because
by Tuna-Fish 7y ago
The way this is achieved is by making sure that there is never a housing shortage, by building enough to keep the prices low.
It's never an investment because prices never appreciate, so no-one would even try to invest in it.
- sanxiyn 7y agoYou can still do this even if you already made a mistake. Remember Japan had an extreme real estate bubble in 1980s.
- coliveira 7y agoThis is probably the reason: they don't want to repeat the same mistake. Unfortunately the US doesn't seem to learn from its mistakes.
- throw0101a 7y agoSure, the "house" depreciates, but what about the land / dirt? This is what I always find interesting in real estate, especially in the pricey areas: we use the mental shortcut of saying "I bought an expensive house". No, you didn't, you bought expensive land. If you "bought a house" for $3M, the structure itself would probably take <$500K to rebuild if it's <3000 sq. ft. (300 m^2): the rest of the money went to dirt ownership.
- BurningFrog 7y agoIf it's legal to build something new on the lot this kind of thinking is valid. So, somewhat caricatured, this is true in Japan, and untrue in California.
- sarbaz 7y agoBut this doesn't really apply to apartments, which are probably much more common in Tokyo