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> Down payments are pretty hard to come up with on a $1m property I agree, it does create some kind of ceiling. > A lot of the time you're competing with deve

> Down payments are pretty hard to come up with on a $1m property I agree, it does create some kind of ceiling. > A lot of the time you're competing with developers willing to pay cash I think that's a secondary effect. Low interest rates create a market of people willing to buy at high prices that the developer is hoping to resell to. A lot of their working capital is also borrowed.

camgunz 4y ago
> I think that's a secondary effect. Low interest rates create a market of people willing to buy at high prices that the developer is hoping to resell to. A lot of their working capital is also borrowed. Oh yep, I totally buy this.