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All of those incentives just increase demand for housing and bid up prices. Supply needs fixing.
by nly 5y ago
All of those incentives just increase demand for housing and bid up prices.
Supply needs fixing.
- lotsofpulp 5y agoBecause they are actually benefits for current asset owners looking to sell (or borrow using existing property as collateral). If the government wanted to help buyers, they could just give them cash and/or increase supply of housing in the in demand areas.
- nly 5y agoSo in the UK the Government is already underwriting first-time buyer mortgages for anyone with a 5% deposit on properties up to $850K USD. This helps noone short term because the banks just pocket the subsidy, and long-term it just drives prices even higher.