Lawn Mowing Simulator

[681029fae873bicemann]

The housing market kinda scares me since I'm remembering how it was doing this in 07 and then everything just fell apart. Fine sure the cause of that was banker greed causing a market inflation, but we've got covid throwing a wrench in things now.

So... get ready for another crash guys.

Well over here in Aus it's due to 2 things:

* Negative gearing - Which gives a tax incentive for investing in houses (for rentals). So if you buy a place then rent it out, tax offset
* Overseas investors - Primarily from China, but also elsewhere. Buying up of a large chunk of houses, then either renting them out or just holding onto them for family at a later point in time. Often bidding twice the asking price of the property

Both of the above have led to a massive increase in prices. To compare:

* In 2010 the average price for a house in my state was between $300k - $400k max (unless it's a rich suburb). Present day in 2021 that's jumped to $1 million (lower in further out areas)

So now the average person can't afford a place anymore, and rentals are on the rise in price too. So double problem.

[681029fae8b4efox]

* In 2010 the average price for a house in my state was between $300k - $400k max (unless it's a rich suburb). Present day in 2021 that's jumped to $1 million (lower in further out areas)

So now the average person can't afford a place anymore, and rentals are on the rise in price too. So double problem.

That precisely mirrors the situation in Germany shortly before Covid. And we are not talking about luxurious houses / properties either. Now factor in that we (already) have the highest energy prices worldwide, which are bound to go up even further for political reasons, a worrying inflation rate and exploding costs and scarcity of building materials. Yes, it is scary.

[681029fae8c59icemann]

Sorry to hear it. I worry for future generations in terms of housing affordability.