The REAL reason behind the housing crisis

@martinzihlmann822

as long as housing is seen as an investment, it will never be affordable

5134 likes

@sheiscallednv

Corporate landlords in the UK are going to be the norm, like the US. Job of government is to protect the public against corporate monopoly. Instead they do the opposite.

3005 likes

@rewindx123

I think it’s good to refresh (formerly) old videos like this. I certainly didn’t see the previous one. Thank you for doing so!

732 likes

@dbanbery

Years ago I worked for a company building housing and I never got my head around where they went for luxury stuff over a smaller margin item that there was massive amounts of desperate demand. I thought they were just woefully out of touch within their own little bubble… turns out they were rich people building for rich people… thanks this has explained what was happening then and why.

31 likes

@alterego6075

"When you're accustomed to privilege, equality for others feels like oppression."

176 likes

@BBCWatcher

Singapore isn't perfect. Housing is too expensive in Singapore, too. But one of the smartest things Singapore's government does is levy onerous Additional Buyer's Stamp Duty (ABSD) on foreign (non-citizen, non-permanent resident) home buyers, non-natural person (corporate, trust, etc.) home buyers, and individuals buying second or Nth homes. These ABSD rates range from 20% (Singaporean citizen buying a second home) to 65% (any entity that's not a natural person buying any home). ABSD is on top of ordinary BSD. ABSD is reasonably effective in keeping the wealthiest individuals and entities from outbidding buyers with zero or perhaps one home. There are some other smart housing policies, but that's one of them. The U.K. government and other governments could adopt ABSD tax rules too.

388 likes

@Dassault354

I knew someone who worked in new home sales in London, they showed me around the apartments they were selling and the process of how they work. The apartments are sold “off plan” (literally as they start construction) to investors abroad at housing bazaars before they are offered for sale here in the UK. These flats may change hands several times before they are even finished, often with a markup of another 50k. Even when they had come onto the market in the UK and the block was finished, foreign investors would come in and buy multiple properties, cash buyers. One of them bought 12 one day, a purchase worth in the region of 10m. This was when the help to buy scheme was running. There was no shortage of people of the Help to Buy list, it was an extremely long list, they got whatever was leftover after the investors had taken whatever they wanted. Every flat they took was another couple, small family or single person having to look elsewhere. It was honestly appalling. What we need is common sense legislation that says, you can own 1 or 2 houses and that’s your lot. No more “investors”.

561 likes

@gremlinvibe

If you're in the UK please listen to this man. Living in the USA is a nightmare I am currently trying to escape

103 likes

@WriterGeek

It illustrates why selling off council housing in the UK was so criminal. Studies have shown that they end up in the hands of the wealthy, diminishing state resources and taking out the only supply of housing that was outside asset prices. Now, you see what Gary is talking about with regards to slums in the growth of van colonies around cities (whether it's someone's permanent home or their mid-week home). My partner has to work in London mid-week and sleeps in his office (and we have middle-class incomes...on the lower side). We are all being influenced by this shift.

1111 likes

@roddychristodoulou9111

Some years ago the BBC did a documentary on this issue , it found that over 70% of properties changing hands in the London areas were from overseas buyers . It turns out that if you bring money from abroad to invest in certain areas you do not have to declare origin of money . This is why London is the money laundering capital of the world and one of the reasons for Brexit .

798 likes

@Tigregalis

I had two lightbulb moments in this video where now I actually get it: 1. it's not houses going up, it's all assets 2. mortgages are assets from the lender's perspective These things seem painfully obvious now that you've laid it out like this. When you said you were going to explain the housing crisis, I didn't expect you to actually explain it. We've heard a hundred rehashings of the same thing, like "we need more supply", but it has always been an unsatisfying analysis, and now it's clear why. I think you've absolutely succeeded in one of your goals of this channel, to explain economics in a way that's understandable to the ordinary person. Now I just don't understand how these things aren't painfully obvious to the other tens of thousands of analysts you see and hear on the news.

1835 likes

@aemma_official

I can recommend to start by request your amortization statement from your current bank. This document is required if you want to move your mortgage to another bank. When your bank sees the request, it often triggers an automatic routine where they reach out to “check in” often with a discount ready but if not, a good opportunity to negotiate since you signal you want to change bank, but don’t have to reveal if you are or not.

9 likes

@cassandra2249

I think economists know exactly what's happing to the housing market. They choose to muddy the waters with nonsense because it's politically expedient to do so.

279 likes

@Lynnpjjbdndji

Exactly why Millionaires are buying up Farms !! It was a Tax free Asset.

202 likes

@jamesmilani3891

3 million millionaires in UK and over 20m millionaires in US. Comparable stats for most European countries. That's a lot of people with cash seeking safe assets. Shouldn't be allowed to hoard essential assets for profit. It's sick. Water, Healthcare, Fuel, Housing.

359 likes

The REAL reason behind the housing crisis

📝 Transcript