3 ms·
What you are describing is one part of the problem. I have friends who earn in dollars. They can easily afford to buy a couple of apartments every year. They
by akudha 4y ago
What you are describing is one part of the problem.
I have friends who earn in dollars. They can easily afford to buy a couple of apartments every year. They do this and let those apartments sit vacant for a few years, waiting for them to appreciate. When many people start doing this, it artificially inflates the prices.
- rendang 4y agoSounds like a job for Georgism (if you are up for radical economic transformation) or a vacancy tax
- wobbly_bush 4y agoThat can be solved with tax/other laws. Guess who will be most impacted by those laws? Not people with one or two apartments as much, but those who do in large scale - that is again politicians and their helpers who help launder illegal money this way. If there are loopholes in the law, people will abuse it but we have to realize the loopholes are not meant for the layperson but the powerful few who abuse it at much higher scale.
- searchableguy 4y agoIt doesn't work that well in practice. While real estate is overinflated for buying, rental yields reflect the market. They are under 2-4% of the property value in most places. India is also expanding vertically in cities so new housing is often built in different area and older infrastructure is not maintained in the long run. A significant portion of real estate is built on under the table money. You often pay 30-50% of the value in black money. So, real estate is a very illiquid investment unless commercial in India. There are also cultural reasons for artificially inflating real estate and Indian property developers are under huge loans similar to China. It won't be sustainable.
- nicbou 4y ago"Everybody works but the vacant lot" https://commons.m.wikimedia.org/wiki/File:Everybody_works_but_the_vacant_lot_(cropped).jpg https://commons.m.wikimedia.org/wiki/File:Everybody_works_bu...