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It is not so simple, let me give example, in UK during pandemic prices hyped by 30%. Reason is, rich own land and properties, but they own them on account of d
by NiceWayToDoIT 6y ago
It is not so simple, let me give example, in UK during pandemic prices hyped by 30%. Reason is, rich own land and properties, but they own them on account of debt and cash flow. Some people have more than 100,000 properties in their portfolio, and they relying on cash flow. So, if anything disturbing happen let say pandemic kills lots of people (or they lose their jobs) and no one rents anymore, then next thing that will collapse are banks, as Banks cannot get their money back. Next thing is government collapsing.
In order to maintain this structure, or protect it from collapsing, during each economic crises government pumps more money (subsidies, interest free money, free money) to the rich. What they do? They buy even more properties.
So, basically on account of the blackmail-standoff-ransom-situation, they siphoning all the properties from the market. Regardless how many properties you make in UK they will buy them all, as they buying them with additional debt - and in that way protecting their renting business. ¯\_(ツ)_/¯