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My thought was that it doesn't matter what houses cost. It is merely an exchange of money for bricks. Neither party needs to lose money in the transaction. Hous
by econ 2y ago
My thought was that it doesn't matter what houses cost. It is merely an exchange of money for bricks. Neither party needs to lose money in the transaction. Houses require maintenance which is partially unpredictable but can be smoothened out by insurance. The party holding the bricks will have to pay for that.
Government can do a credit rating that partially depends on the economic value you bring to the region. This should sufficiently pump up the credit possibly making it cheaper than the construction cost.
You can also arrange a place to retire in advance and make it part of the contact.
The houses closest to the factory ideally have employees living there. A 10 min walk is economically preferable over a two hour drive. The extra time can be spend doing valuable things at home but it should also make working overtime less of an issue. Sending people home for a few hours in the middle of the shift at reduced rates shouldn't anger people as much.
I recall how no one I knew was able to afford a home. People got really careless from it. They didn't give a fuck about anything. One guy managed to buy a crappy one but couldn't afford the maintenance. He exited with 150 k profit which was 400-500 months salary. He spend it on booze and drugs.