Re:The Portuguese can no longer afford to live in Portugal
by aperson_hello on Thursday September 01, 2022 @07:46PM
(#32684852)
The only real way to fight this is oversupply imho. Can't financialize something that doesn't generate outsized returns. If expected returns are lower (and risk higher) than the next financial class, money will move to that other financial class instead. Right now, real estate is low risk/high reward compared to the next best option (stocks?). So...money pours into real estate. Increase that supply to the point where finding a renter is at least marginally challenging, and you'll find that cash goes elsewhere.
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Re:The Portuguese can no longer afford to live in Portugal
by sudosysgen on Friday September 02, 2022 @01:50AM
(#32687058)
Oh but yes you can financialize. Financializatuon of real estate isn't really about outsized returns, it's the return to risk ratio that has potential for massive leverage.
So if you increase supply and then people get bigger homes, etc..., until prices reach an equilibrium, then as long as rents exceed maintenance costs and land doesn't depreciate, you have a leverage (read: financialization) opportunity.
Then prices rise again until you do something else, and eventually you approach infrastructure scaling limits.