51
Create a race to the bottom in the rental market
(lemmy.world)
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Housing costs, rental or purchase, are only resolved by supply and ending real estate's position as an investment vehicle.
That means large scale public housing investment to the point that it actively devalues property on a capital value bases. Rental yields are already a poor investment on their own. That leaves the "just park the money" crowd with a simple choice: sell now or watch it depreciate.
Yep. I bet my landlord is barely, if it all, breaking even on yield. Whereas I'm sitting on my arse investing in ASX: VAS getting 12%.
Why people go the lengths to get a loan, buy a flat, find a tenant, do all the maintenance and paperwork, all to get 0.1% yeild, and maybe an increase in value? I mean the last 30 years yes it would be wise, but you can't just say it'll be like that in the future.
Also, if I need the equity, it's liquid, unlike houses.
IP is typically leveraged, effectively multiplying returns.