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What purpose would that home serve? Is there demand for it or it will just suppress housing prices by increasing supply? I guess the message here is that rent-
by samsonradu 7y ago
What purpose would that home serve? Is there demand for it or it will just suppress housing prices by increasing supply?
I guess the message here is that rent-seeking investments (positive yielding investments, deposits) will no longer work. Value needs to be added.
- JumpCrisscross 7y ago> will just suppress housing prices by increasing supply? That’s an odd way to phrase keeping housing affordable.
- umeshunni 7y agoIt's a phrasing that's extremely popular in the US, for obvious reasons.
- samsonradu 7y agoTrue, too much watching Bloomberg lately :)
- deleted 7y ago[deleted]
- samsonradu 7y agoJust tried to be technical, since 'affordable' is debatable. What I'm asking is how would building houses for no reason help in the current circumstances. Wouldn't the house also erode in value?
- JumpCrisscross 7y ago> how would building houses for no reason Stable housing prices are good for an economy. Next to negative rates, that’s a win. That’s the point.
- samsonradu 7y agoIf the prices are stable yes, but why would prices remain stable? Wouldn't this be arbitraged to the level of negative rates?
- adrianN 7y agoYou can always live in a home.
- samsonradu 7y agoIn one home, yes.
- JetSpiegel 7y ago> What purpose would that home serve? Save on rent? Not every asset is a commodity to be traded.