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Many countries have solved this problem by providing near zero interest loans to individuals purchasing a primary residence, while maintaining higher interest r
by mike_d 6y ago
Many countries have solved this problem by providing near zero interest loans to individuals purchasing a primary residence, while maintaining higher interest rates for investment properties and corporate purchases.
- throwawayboise 6y agoThat's how it works in the USA as well. Mortgage interest for a home you live in will be lower than for investment property. Insurance is cheaper also.
- mike_d 6y agoAs an individual buyer trying to invest, yes. Large institutions can borrow at much lower interest rates than you and I.
- refurb 6y agoHow does that solve the problem if there is enough primary residence demand to push up prices to unaffordable levels? I mean, NZ is crazy unaffordable and foreigners can’t own real estate there from what I gather. It’s purely organic demand driving up prices.
- throwaway0a5e 6y ago>How does that solve the problem if there is enough primary residence demand to push up prices to unaffordable levels? That mostly doesn't happen because sid countries don't generally have California style zoning (though their byzantine permitting and regulatory compliance processes are just as good as CA or NYC's when it comes to raising construction costs).
- refurb 6y agoIf it “mostly doesn’t happen” can you list some examples of countries who offer zero interest loans and don’t have affordability issues? I mean Singapore offers many incentives to purchase and their housing market is nuts with the government always trying to keep prices from exploding.
- phkahler 6y agoThat artificially drives up housing costs.