5 ms·

I don't think these drive up prices higher. LISA specifically mentions that it has to be your first house anywhere in the world, so it is targeted at home owne

I don't think these drive up prices higher. LISA specifically mentions that it has to be your first house anywhere in the world, so it is targeted at home ownership. People speculating shouldn't be able to take advantage of this. Though LISA is pretty much useless in London. Good luck finding even a good 1 BHK under 450k inside Zone 4

dionidium 5y ago
That doesn't matter. It increases the amount the first-time buyer can bid from $x to $y, which just means the investor has to bid $y + 1 instead of $x + 1. Since $y is higher than $x all that's happened is prices have risen.
- actuator 5y ago
  Yeah, but the idea is to try to give buyers a leg up from investors. It is another story that most investors have way more money to be outbid this way.
nemothekid 5y ago
>I don't think these drive up prices higher. It's a demand-side policy to what is a supply-side problem. If the demand is already there, and you induce more demand by providing subsidies, prices will go up. If you want to reduce prices you must either increase supply (building housing) or decrease demand (remove someone, hopefully speculators, from the market). However, given housing has become a defacto investment asset for Americans and Canadians, I don't see this issue ever being resolved without a political revolution or an economic depression.
- actuator 5y ago
  > housing has become a defacto investment asset for Americans and Canadians Is there a major economy where this is not true? In fact it becomes comical in some developing countries. Cities in India have NY/London like prices for much worse infrastructure and much lower purchasing power.
  - nemothekid 5y ago
    Japan, Germany, arguably, Britain. I'm not saying these places don't have exorbitant housing costs, but housing is not the primary way of securing your retirement.

5 ms·

I don't think these drive up prices higher. LISA specifically mentions that it has to be your first house anywhere in the world, so it is targeted at home owne

by actuator 5y ago

dionidium 5y ago
That doesn't matter. It increases the amount the first-time buyer can bid from $x to $y, which just means the investor has to bid $y + 1 instead of $x + 1. Since $y is higher than $x all that's happened is prices have risen.
- actuator 5y ago
  Yeah, but the idea is to try to give buyers a leg up from investors. It is another story that most investors have way more money to be outbid this way.
nemothekid 5y ago
>I don't think these drive up prices higher. It's a demand-side policy to what is a supply-side problem. If the demand is already there, and you induce more demand by providing subsidies, prices will go up. If you want to reduce prices you must either increase supply (building housing) or decrease demand (remove someone, hopefully speculators, from the market). However, given housing has become a defacto investment asset for Americans and Canadians, I don't see this issue ever being resolved without a political revolution or an economic depression.
- actuator 5y ago
  > housing has become a defacto investment asset for Americans and Canadians Is there a major economy where this is not true? In fact it becomes comical in some developing countries. Cities in India have NY/London like prices for much worse infrastructure and much lower purchasing power.
  - nemothekid 5y ago
    Japan, Germany, arguably, Britain. I'm not saying these places don't have exorbitant housing costs, but housing is not the primary way of securing your retirement.