If you were to prevent private people from owning their own property and offsetting mortgages they will simply invest in property companies that take loans out and rent the property out. So you will have the same thing, people have some money and they want to invest, they will invest it. Changing the law to prevent a company only taking out loans out for anything but property or buildings is not going to work. How would a company or companies finance, office blocks, factory, a shopping center or a hotel?
..and if you were to only allow commercial property via loans, with one stroke the rental market would be dead (or as near as dammit), apart from rooms in private houses.
The result of this would be high rents.
If house prices are to come down the best way to achieve this is to build more houses. That´s what pushes the price of houses up.
..and if you were to only allow commercial property via loans, with one stroke the rental market would be dead (or as near as dammit), apart from rooms in private houses.
The result of this would be high rents.
If house prices are to come down the best way to achieve this is to build more houses. That´s what pushes the price of houses up.
Comment