5 ms·
One of the biggest costs of new rental construction is financing costs (on a 30 year loan it's often half of the cost). Given that it's cheaper for the governme
by zjaffee 7y ago
One of the biggest costs of new rental construction is financing costs (on a 30 year loan it's often half of the cost). Given that it's cheaper for the government to borrow money than the private sector you can have the government simply build market rate housing, but wouldn't need to charge as much in rent.
In this context, the government can essentially be a magic entity.
- cyrksoft 7y agoSo you'll force tax payers to pay for it? Government doesn't have free money. Why should people be forced to pay for the construction of such housing?
- Jotra7 7y agoThe construction costs would be recouped by the renters. Are you being obtuse on purpose?
- zjaffee 7y agoTax payers wouldn't have to pay for anything, the only impact would be potentially on credit ratings of the government and possibly also certain interest rates in a minimal way. You can create market rate housing with government subsidized loans that don't come from tax coffers. Hell, the US federal reserve is technically the backer of hundreds of billions worth of mortgages.
- cyrksoft 7y agoWe know how the mortgage crisis went. Government isn’t a magical solution.