5 ms·
Two groups betting against each other - the one who is betting the prices go up (and buys houses) - the second who is staying out of the market claiming it’s a
by leroman 5y ago
Two groups betting against each other
- the one who is betting the prices go up (and buys houses)
- the second who is staying out of the market claiming it’s a bubble
In the center, there’s the interest rate, where the first group claims needs to stay low so they can win/survive, but if it does, the second group loses.
- chasebank 5y agoBut isn't that the problem? People are incentivized to purchase homes as a speculative asset instead of what a house should be purchased for, um, ugh, housing.
- Gigachad 5y agoI don’t see how it’s possible to not incentivise that. Houses have a huge amount of real value and would be expensive even without the land scarcity. If you are spending a lot of money on an asset, it always has to include some analysis on investment because you always have the option to not buy and put that money on a productive investment instead.