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What you're missing, is that all the property owners take out massive amounts of credit, believing that the rise in property values will cover it and they can j
by rcarr 3y ago
What you're missing, is that all the property owners take out massive amounts of credit, believing that the rise in property values will cover it and they can just remortgage in 5 years. So they buy pointless shit like Range Rovers even though they live in the city and take luxury holidays they wouldn't be able to afford otherwise. The smarter ones use the extra credit to buy more houses. If the property prices tank all these people go bankrupt. No government will let it happen because they'll become unelectable for decades. It's truly absolute dogshit.
- LegitShady 3y agoproperty owners who over leveraged themselves forced to sell properties should help drop the price, so its actually a positive in terms of the solution, its just radioactive on the political end. Canada is the same way except massive immigration, temporary foreign worker program, and foreign students allowed to work 40 hours a week (in case you were wondering if the student visas are legit) have driven up the price of housing beyond any reason. Probably multiple generations of canadians whose financial future was sacrificed so the current government can run their seemingly ideological immigration program.
- brailsafe 3y agoIf there was much more modest immigration, which there probably should be at least for some time, we'd eventually have severely inflated house prices anyway, because that's the system they built. Various types of immigration are just some of the parts of it, and it's much more complex than just "dial the knob down and we're golden".
- eli_gottlieb 3y ago>If the property prices tank all these people go bankrupt. Good. Let them.