Commercial office real estate no longer looks so good with move to work from home So the money that would have gone there is going into residential real estate instead?
Well, you'd support higher unemployment and overall lower standard of living then. Sure, housing prices would be a lot lower too but you'd still wouldn't be able to afford them. My God, why would you ever think that if the housing prices were lower then suddenly you'd be able to afford it ? Doesn't the market reflect the price of equilibrium ? Higher rates, higher mortage payments, higher unemployment, lower wages, and suddenly you feel richer ? You got something upside down, dude. Moreover, since the rich have tons of money, then raising the value of money (by raising rates) would only make them exponentially richer because now they can park their excess cash into high interest bonds AND buy up all the cheap real estate leaving the middle class fully empty handed forever. Interest rates ARE set by the market. If they weren't then why would any central bank (mostly in emerging markets now) accept 5-10% interest rates ?? it's all about the government bond market. Stop buying those bonds and you'll see the CB hike like there's no tomorrow. The fact that it LOOKS as if the CB is in control means that there's still lots of real money demand for those bonds. Why ? i dont know. Your desire for higher interest would only make the sidelines cash that the rich have earn an interest without ever lifting a finger. How is that gonna help anybody ? If you were a CBer, would you really give the rich 5% risk free return if you could give them 1% or 0% as it is now ? The only steps i see for the future is taxes directed at speculation, taxes directed at those who have fck ton of money but are not paying anything. We'll see if it's ever gonna happen tho. Why would you raise rates for everyone ?? Wasn't your idea that the working class could afford more ?
Why is Blackrock buying every single family house they can find? Because Billy Gates beat them to the farmland?
%% Another problem was many enjoyed working from home/virus trend ; win /win for homes + home offices. We used to see people living above the business [2nd story]/ not so much now.............................................................................. With the US virus about having herd immunity/ i still like my home office.[BUT take out UTAH,as an example + NAR notes almost all top 10 commercial REALTY places are sunbelt]
I think its the classic chasing yield. Around here I have never seen so much new construction. Houses, apartments of all kinds..student housing...luxury retirement...it goes on and on. And then there's commercial...like retail. Just about everyday I run across a new development. I remember this happening about the time of the S&L crisis. That was brought on partly a change in the tax code, but I remember reading about all these developers seeing a need and by time they started building, 10 other developers saw the same thing and were building. The home builders have actually gotten better. The small guys are gone and the bigger guys know not to get too far ahead. You don't too many spec houses now. I don't think I could say the same thing about the guys building apartments. There is no way in hell we are growing that fast around here.
"made up digital money banks have that nobody else does yet." is what dude in cardbaord box told me. somthng bout 1st user new fiat bleeding edge inflation. He put my 20 in btc on 'is smaatphone, toward salvadore passport, gonna pick himself up some r estate there.