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A comment on Low interest rates in advanced countries have pushed money into real estate. Parent comment

Re:Low interest rates in advanced countries have pushed mone... by chii on Wednesday November 24, 2021 @11:49PM (#29338310)
> The housing market is heavily absolutely distorted

i still don't understand what these distortions being claimed are. "artificially low" interest rates isn't a distortion - it affects everything, and the rates may not be that low, compared to the growth. As for taxation, real estate isn't treated too differently from any other forms of investment.

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Re:Low interest rates in advanced countries have pushed mone... by stickfigure on Thursday November 25, 2021 @01:15AM (#29338684)
The 30-year fixed-rate mortgage is pretty unique to real estate.
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Re:Low interest rates in advanced countries have pushed mone... by zajio1am on Thursday November 25, 2021 @09:32AM (#29341624)
Ability of third parties (politicians, bureocracy, NIMBY groups) to block or retard production of new assets. From what i heard from developers, getting permissions for a new appartment complex takes many years, several times longer than actually building the complex.
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Re:Low interest rates in advanced countries have pushed mone... by ClumsyPilot on Thursday November 25, 2021 @01:32PM (#29343711)
Inability of third party to capture value they create - an apartment complex in the middle of the forest is worthless.

It needs utilities, shopping centre, major metro line, highway, arts, jobs, good schools, and general 'nice area' vibes created by artists on the verge of bankruptcy. None of those things area created by the construction company.

In fact randomly building houses leads to congestion, lack of places in schools and other facilities, and miserable living conditions.

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