42 sats \ 3 replies \ @halalmoney 12 May \ on: England: Housing Market Shows Signs Of Stress econ
In the UK, one’s home is a key hedge against inflation and a key driver for the ‘wealth effect’. So, falling house prices would be a significant economic and political problem.
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42 sats \ 2 replies \ @xz 12 May
But flipped on it's head, the UK encouraged people to lever up on unaffordable borrowing for second homes, buy to let holiday homes. Almost as if people were tricked into taking on more debt. This has caused the systemic problems, exasperated by dumb immigration policy, which forces tax payers to foot the bill for it.
Falling house prices would solve so many problems in so many places in the world.
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21 sats \ 1 reply \ @halalmoney 12 May
I wouldn’t say encouraged. I would say duped by artificially low interest rates to buy a ‘fail-safe’ property.
I do agree that homes shouldn’t be so expensive but it’s to be expected when money doesn’t hold its value.
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0 sats \ 0 replies \ @xz 12 May
when money doesn’t hold its value.
That's something I keep coming to terms with in my mind and took a long time to sink in. It's not that home prices are increasing, just that cash money's value is constantly decreasing.
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