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It won't work. We're facing another 2008 but writ large, and if that plays out in a similar way, we'll see people move in together so that not only will housin

It won't work. We're facing another 2008 but writ large, and if that plays out in a similar way, we'll see people move in together so that not only will housing prices drop through the floor but rents as well. A lot of this is to diversify out of equities which will soon crater ala 1929. The problem is that hundreds of empty track houses don't have value either. I think they know that; I think they feel they don't have much choice. Desperate times.

api 5y ago
That can't happen as long as interest rates are borderline negative. People are investing in stocks because they're a sure thing. People are investing in property because it's a sure thing. Everything is a sure thing but cash. I know people who have gotten <2% mortgages, which is like a 0% interest mortgage. These are private individuals. What rates do you think banks the super wealthy are getting? Nothing can go down until rates go up. Hell BTC went up after the Senate passed a bill that could really curtail adoption of it... because nothing can go down. Money printer go BRRRRRRRRRRR... https://brrr.money https://brrr.money
wallacoloo 5y ago
> we'll see people move in together so that not only will housing prices drop through the floor but rents as well. When two people move in together so that they now only have to pay 1/2 the rent of a house, that means the rent of each house can double and the occupants can still afford it. There’s a way this plays out where both home price and rent double, but an increasing number of houses sit on the sidelines empty. Watching the commercial real estate market over the past decade, that scenario doesn’t strike me as outlandish.
- AnimalMuppet 5y ago
  That only works if the landlords who are "in on the game" own all the houses. If they only own half, and people double up, then the landlords who are trying to play this game end up with $0 income for their investments. That's going to be painful - hopefully painful enough that they have to abandon the strategy, and we can return to sanity.
  - Sammi 5y ago
    They just take up more loans to cover their debts. That works while interest rates are zero or lower. Hyperinflation here we come.
    - AnimalMuppet 5y ago
      "Hyperinflation here we come" and "interest rates are zero or lower" aren't going to coexist, at least not for long.

api 5y ago

That can't happen as long as interest rates are borderline negative. People are investing in stocks because they're a sure thing. People are investing in property because it's a sure thing. Everything is a sure thing but cash. I know people who have gotten <2% mortgages, which is like a 0% interest mortgage. These are private individuals. What rates do you think banks the super wealthy are getting? Nothing can go down until rates go up. Hell BTC went up after the Senate passed a bill that could really curtail adoption of it... because nothing can go down. Money printer go BRRRRRRRRRRR... https://brrr.money https://brrr.money

wallacoloo 5y ago

> we'll see people move in together so that not only will housing prices drop through the floor but rents as well. When two people move in together so that they now only have to pay 1/2 the rent of a house, that means the rent of each house can double and the occupants can still afford it. There’s a way this plays out where both home price and rent double, but an increasing number of houses sit on the sidelines empty. Watching the commercial real estate market over the past decade, that scenario doesn’t strike me as outlandish.

AnimalMuppet 5y ago
That only works if the landlords who are "in on the game" own all the houses. If they only own half, and people double up, then the landlords who are trying to play this game end up with $0 income for their investments. That's going to be painful - hopefully painful enough that they have to abandon the strategy, and we can return to sanity.
- Sammi 5y ago
  They just take up more loans to cover their debts. That works while interest rates are zero or lower. Hyperinflation here we come.
  - AnimalMuppet 5y ago
    "Hyperinflation here we come" and "interest rates are zero or lower" aren't going to coexist, at least not for long.