Re:London: the city that ate itself
by _yosefk on Tuesday June 30, 2015 @02:05AM
(#9803235)
Widespread building restrictions limiting supply and huge subsidies for those holding financial assets ("QE") together with low yields caused by near-zero interest rates fueling demand will do that. (How it will end I can't imagine. I'm amazed at how calmly people are taking it, and at the kind of countermeasures they propose (usually rent control or other foot shots.))
[ Parent
| on HN ]
What gets me is that the problem is very easy to solve. Bring in property tax brackets, increase the top rate.
QE is just a handout for private individuals who sell government bonds on the second-hand market; it doesn't really have anything to do with real estate.
But yeah, near-zero interest rates right now and borrowing costs being tax-deductible contribute to housing bubbles.
Re:London: the city that ate itself
by tonyedgecombe on Tuesday June 30, 2015 @07:54AM
(#9804528)
Yes, I'm not sure why we let landlords expense mortgage interest but not home owners (in the UK) but it would be a good idea to get rid of this loophole.