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The next real estate crash will be very interesting. It's not gonna be the whatever estate saddled with an unpayable mortgage, or banks saddled with a a ton of

The next real estate crash will be very interesting. It's not gonna be the whatever estate saddled with an unpayable mortgage, or banks saddled with a a ton of unknown/questionable mortgages... correct me if I'm wrong, but it will be a lot of rich people, especially foreigners who will get hosed.

sjtgraham 11y ago
This is only a problem when one wants to sell up. If there is some sort of economic crisis that precipitates a collapse in the housing market it's very likely anything else the super rich could've parked their money in instead would also be FUBAR too.
- gonzo41 11y ago
  Whats interesting in this regard is societies relationship to housing and what it is. Is it an investment or is it a basic human right to have a house over your head? I live in Australia, and there are a lot of "rich" people who made a money off property, just flipping regular houses in our insane market. All the components of a medium house are reasonably cheap. But then market value comes into play you you add thousands to a sale price. I think the real issue is that a house (basic human need) is being used like any other financial tool. There should be restrictions on the types of investment that uses residential property, to protect people and to allow them to live where they work. But good luck controlling capitalism, last GFC started because of houses. But nothings really has changed. Just to add in the Australian context people see property as a way to get rich. the idea of starting business or generating wealth via new ideas, services, technology is sadly not as prevalent as other places.
  - jrbancel 11y ago
    > Is it an investment or is it a basic human right to have a house over your head? Muammar al-Gaddafi had an interesting take on this particular issue: page 51 of The Green Book (http://openanthropology.org/libya/gaddafi-green-book.pdf http://openanthropology.org/libya/gaddafi-green-book.pdf). Newlyweds were given enough money to build a house.
  - eru 11y ago
    The problem in Australia is that they don't build up. Restrictions on who can invest only bar the people who can't hire a clever lawyer to get around the restrictions.
crdoconnor 11y ago
>correct me if I'm wrong, but it will be a lot of rich people, especially foreigners who will get hosed. Wealthy investors always seem to find a way to foist the losses off on to somebody else. See what happened to Greece's loans for just one example. They ended up owned by Eurozone governments but they didn't start out that way.

sjtgraham 11y ago

This is only a problem when one wants to sell up. If there is some sort of economic crisis that precipitates a collapse in the housing market it's very likely anything else the super rich could've parked their money in instead would also be FUBAR too.

gonzo41 11y ago
Whats interesting in this regard is societies relationship to housing and what it is. Is it an investment or is it a basic human right to have a house over your head? I live in Australia, and there are a lot of "rich" people who made a money off property, just flipping regular houses in our insane market. All the components of a medium house are reasonably cheap. But then market value comes into play you you add thousands to a sale price. I think the real issue is that a house (basic human need) is being used like any other financial tool. There should be restrictions on the types of investment that uses residential property, to protect people and to allow them to live where they work. But good luck controlling capitalism, last GFC started because of houses. But nothings really has changed. Just to add in the Australian context people see property as a way to get rich. the idea of starting business or generating wealth via new ideas, services, technology is sadly not as prevalent as other places.
- jrbancel 11y ago
  > Is it an investment or is it a basic human right to have a house over your head? Muammar al-Gaddafi had an interesting take on this particular issue: page 51 of The Green Book (http://openanthropology.org/libya/gaddafi-green-book.pdf http://openanthropology.org/libya/gaddafi-green-book.pdf). Newlyweds were given enough money to build a house.
- eru 11y ago
  The problem in Australia is that they don't build up. Restrictions on who can invest only bar the people who can't hire a clever lawyer to get around the restrictions.

crdoconnor 11y ago

>correct me if I'm wrong, but it will be a lot of rich people, especially foreigners who will get hosed. Wealthy investors always seem to find a way to foist the losses off on to somebody else. See what happened to Greece's loans for just one example. They ended up owned by Eurozone governments but they didn't start out that way.