Similar in most the world isn’t it? Problem is the overlap between properties and investment. Some people just want a home. But investment seekers drive the price up continually. So now, buying a home is such a huge commitment that even just pure home-seekers are forced to be in the position where they too need the value to go up over time. If you could buy a home for less than a years salary, it wouldn’t be the end of the world if it fell in price over time. But when you have to put in 30 years of your life to buy one, of course you need it to rise. So property becomes an “investment” for everyone and it’s a vicious snowball effect.
3 comments
Similar in most the world isn’t it? Problem is the overlap between properties and investment. Some people just want a home. But investment seekers drive the price up continually. So now, buying a home is such a huge commitment that even just pure home-seekers are forced to be in the position where they too need the value to go up over time. If you could buy a home for less than a years salary, it wouldn’t be the end of the world if it fell in price over time. But when you have to put in 30 years of your life to buy one, of course you need it to rise. So property becomes an “investment” for everyone and it’s a vicious snowball effect.
The state of UK rental market summed up in one video: https://www.reddit.com/r/PublicFreakout/comments/u8o8gt/tenant_calls_a_landlord_a_wanker_landlord_doesnt/
It’s all rigged against you! Have we not figured that out now?