/biz/ - Business & Finance

The cause of real estate bubbles is foreign investment.
>be foreigner
>make money in US
>get paid in US dollars
>can't spend US dollars in home country
>invest in real estate
???
>bubble

>>19676789
Ok... so how does the bubble 'burst'? When said foreigners return to their home country and bring their money with them?

>>19676770
that's a man

>>19676770
>boomers keep taking loans and buying overpriced houses
>boomers dump their bags on you

>>19676770
>banks give everyone loans
>suddenly everyone can afford a house
>drives housing price up into a bubble

>>19676770
MOMMY MILKERS

GIVE ME SAUCE PLS

>>19677056
I've been searching for a while. If you find sauce on milkers be sure to hit me up.

It’s sad to see how beautiful this thot was before the dozens upon dozens of plastic surgeries. Tits are full bolt ons now with a bolt on ass, with the Korean special face surgeries.

>>19676770
You’re assuming the housing price correlate 1:1 with the demand for living space. This isn’t true, the housing market like any markets has a significant amount of participants using leverage. What this means is people or companies buying multiple homes with the assumption of future increases that then sell to others, now if you’re buying more houses or property than you need it’s because you’re assuming growth, but the person who buys from you is ALSO assuming growth, this feedback bounces back and forth until the prices themselves have factored in the increase in demand for years into the future. Then one day demand falls a little bit and someone wants to sell but now the buyer thinks “I can wait a little longer and it’ll fall even more” and that itself causes the price to go down more, this feedback loop goes in the opposite direction until houses are so cheap people can’t resist them. It’s how the housing market has worked for decades now

>>19676815
>so how does the bubble 'burst'?
Are you serious? Foreigners probably will try to sell the multiple houses that they own these days and who is going to buy them? Average millennial in the US is broke. Gen X is already settled with family and boomers are also probably going to sell their multiple houses.

>>19677791
Sauce?

>>19677833
Thanks for the effort post fren. So it's safe to say that the bubble doesn't 'burst' but rather inflates and deflates based on this?
Would this affect the cost of rent? People who purchase with intent to hold onto for ever and rent them out?

>>19677948
Isn't the real money in renting out properties rather than speculating on growth? I would assume that such people owning these properties could just make their fortune off the rent rather then buying high and selling low? Or am I retarded?

>>19677056
Shanny lam .

>>19677470
Use Yandex .com to reverse image next time dummy

>>19677056
thats a m*****N

>>19677056
https://www.instagram.com/victoriamynguyen/

>>19677833
>>19678267
Assuming from your answers there will be never cheap houses because people are to greedy to sell cheap and too broke to buy. Bearish as fuck for home buyers

>>19676815
It bursts when people realize real-estate is priced more than it is worth, like in '08 when people quit paying their mortgages and people discovered what they thought were AAA rated MBS were actually tranches of subprime shit.

>>19676770
the number of houses sold and the mortgage contracts made is way higher than the demand. bankers, real estate agents keep selling and re-selling the same property for extra profit, without any added value, so it is similar to inflation ( you have to pay more for the same product )

>>19679708
did you quote the big short word for word

Insider here, European housing market is expected to decrease by 6%

This is only the start, sell

>>19676770
Cheap money is facilitating artificial demand because it's easier for investors to borrow fiat and drive up demand.

Inflation artificially demands people to invest in housing to preserve wealth, causing a positive feedback loop as more investors are drawn in. This is also true for the stock market

Governments need house prices to remain high because they serve as a backup to all the unpayable liabilities the state has collected - pensions demands become less serious if a boomer has a house that increases in value every year. This is partly why the West has such high immigration rates

Modern economics make tv's cheaper but you still need currency pegged to SOMETHING; modern currencies serve as something similar to the Retenmark; currency is tied to property. People trade houses now like the wealthy did with gold bars

I'm not convinced that we're in a housing bubble. We've recently hit historic numbers in terms of low credit spending and high savings rates, even with 0% interest rates and banks having effectively free leverage. Commercial real estate is in a death spiral. If anything I'd say we're going to stagnate for a few years. There are homes that are STILL underwater from the 08 crash.