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No, I don't see it. I think if you think banks are to blame for high housing costs, you're not thinking very hard. Housing costs rise in some areas, because a
by lottin 6y ago
No, I don't see it. I think if you think banks are to blame for high housing costs, you're not thinking very hard. Housing costs rise in some areas, because a lot of people wants to move in those areas. Building new houses takes time, which means in the short term prices will rise inevitably. Same thing applies to interest rates. Low interest rates are simply signalling that there is an oversupply of savings in the market. If you still want to save, fine, but don't expect to earn much interest. This is not some conspiracy of evil bankers, just normal market forces at play.
- CTDOCodebases 6y ago“Housing costs rise in some areas, because a lot of people wants to move in those areas.” Oh silly me. Here I was thinking that it had something to do with the cheap debt available (courtesy of government, banks and my savings for a home loan deposit), negative gearing and lax foreign investment laws that incentivise individuals to purchase residential properties for investment purposes. Like I said. I just want to be the custodian of my money in a secure digital form so that it cannot be used against me. Why is that so unacceptable?
- lottin 6y agoPutting your life savings in a high-risk, non-producing asset is not very smart, but it's certainly nobody's business but yours.