A surplus in supply would threaten them with an infinite time to wait for their target ROI.
Dindingding winner winner chicken dinner. That’s exactly what’s happening. Question still being why such stuff should be allowed in the first place, why should ordinary folks have trouble getting apartments just so that some rich fucks can try to make profit.
Fiat currency. Public banks can hand out credits to whomever wants to build with a solid calculation.
You can’t just print money because inflation. That said, yes, public banks are absolutely able and willing and happy to invest in housing projects. It’s how e.g. these folks get much of their money. Things get difficult though when there’s speculators throwing money around, artificially increasing property, land, and construction prices. Public and cooperative banks are generally happy if your project earns enough rent to finance their fixed-term deposit rates but with inflated costs earning that rate means inflating rents and then you again might be out of people who can afford it.
Side note the mortgages on multiple flat type properties don’t tend to get paid down, ever: By the time the mortgage matured it’s time to renovate the thing, and you roll it over into a new one. Still the rent prices you can achieve with that are nothing like you see on the open market.
I want to live in a society where people choose the solid products on their own. Everything else calls for trouble down the line.
It is irrational to expect rational behaviour from people.
why such stuff should be allowed in the first place,
Because we have a market economy. We can switch to planning, but that has its own disadvantages
why should ordinary folks have trouble getting apartments just so that some rich fucks can try to make profit.
They should not. It’s market manipulation that we don’t have enough apartments. With different zoning laws or more plots to built, there would be enough apartments.
speculators throwing money around, artificially increasing property, land, and construction prices.
Tax empty housing, or housing in general, and speculation will disappear.
Still the rent prices you can achieve with that are nothing like you see on the open market.
In which way? Why are those apartments not on the open market?
It is irrational to expect rational behaviour from people.
That’s also why people shouldn’t be forced to be rational. The Sovjet Union was forcing people to be rational but people weren’t happy.
Because we have a market economy. We can switch to planning, but that has its own disadvantages
Planned economy is not when there are regulations.
They should not. It’s market manipulation that we don’t have enough apartments.
“Manipulation” implies intent to achieve that state of affairs, and, no, that wasn’t the goal of capital. Capital wanted ROI and looked for it in the wrong place.
With different zoning laws or more plots to built, there would be enough apartments.
In the US, yes. Europe by and large doesn’t have such inane laws.
In which way? Why are those apartments not on the open market?
The syndicate – did you read the link I gave you – specifically works towards removing properties from the market, get all control into the hands of the tenants. Rents pay for the mortgage, that’s it, no middleman, and the legal structure ensures that tenants can’t band up and cash out like many a cooperative did.
That’s also why people shouldn’t be forced to be rational. The Sovjet Union was forcing people to be rational but people weren’t happy.
The fuck has the USSR to do with anything we’re talking about. Also why are you calling tankies rational go to lemmygrad if you like them so much.
Dindingding winner winner chicken dinner. That’s exactly what’s happening. Question still being why such stuff should be allowed in the first place, why should ordinary folks have trouble getting apartments just so that some rich fucks can try to make profit.
You can’t just print money because inflation. That said, yes, public banks are absolutely able and willing and happy to invest in housing projects. It’s how e.g. these folks get much of their money. Things get difficult though when there’s speculators throwing money around, artificially increasing property, land, and construction prices. Public and cooperative banks are generally happy if your project earns enough rent to finance their fixed-term deposit rates but with inflated costs earning that rate means inflating rents and then you again might be out of people who can afford it.
Side note the mortgages on multiple flat type properties don’t tend to get paid down, ever: By the time the mortgage matured it’s time to renovate the thing, and you roll it over into a new one. Still the rent prices you can achieve with that are nothing like you see on the open market.
It is irrational to expect rational behaviour from people.
https://en.wikipedia.org/wiki/Parable_of_the_broken_window
Because we have a market economy. We can switch to planning, but that has its own disadvantages
They should not. It’s market manipulation that we don’t have enough apartments. With different zoning laws or more plots to built, there would be enough apartments.
Tax empty housing, or housing in general, and speculation will disappear.
In which way? Why are those apartments not on the open market?
That’s also why people shouldn’t be forced to be rational. The Sovjet Union was forcing people to be rational but people weren’t happy.
I tried to make sense with this. https://en.m.wikipedia.org/wiki/Broken_windows_theory
Now it’s clear.
Planned economy is not when there are regulations.
“Manipulation” implies intent to achieve that state of affairs, and, no, that wasn’t the goal of capital. Capital wanted ROI and looked for it in the wrong place.
In the US, yes. Europe by and large doesn’t have such inane laws.
The syndicate – did you read the link I gave you – specifically works towards removing properties from the market, get all control into the hands of the tenants. Rents pay for the mortgage, that’s it, no middleman, and the legal structure ensures that tenants can’t band up and cash out like many a cooperative did.
The fuck has the USSR to do with anything we’re talking about. Also why are you calling tankies rational go to lemmygrad if you like them so much.