Re:Home Price to Income Ratio
by civilized on Monday September 20, 2021 @09:36PM
(#28601160)
Why would I lend you a million dollars only to be paid back over 30 years and have less than I started with at the end of the 30 years? I'd be better off doing nothing with the money.
[ Parent
| on HN ]
You wouldn't, but the government might - to keep the economy propped up. I think this is what parent meant, anyway.
Not sure that's a healthy point for the government or the economy to get to, but with politics the way they are these days it doesn't sound that farfetched of an outcome...
If things get to that point, the government might as well just buy all the housing.
Re:Home Price to Income Ratio
by s1artibartfast on Tuesday September 21, 2021 @12:04PM
(#28606473)
It has already been done.
https://www.investopedia.com/articles/personal-finance/05141...
Re:Home Price to Income Ratio
by spywaregorilla on Tuesday September 21, 2021 @11:31AM
(#28606036)
Because you don't want to keep 1 million dollars under your mattress.
Maybe I do if my other options are this bad.
Although if the reason the government is doing negative interest rates is to prop up home prices forever and ever, I guess I better put my money into housing.