We’re living in the era of Champaign Socialism, in which for the most part a lot of municipalities in most western nations, have REGULATED themselves out of their local rental markets.
In some socialist towns or cities in Spain, the local idiots have declared war on tourists; I assume next the war will be immigrants. I like to remind people that prior to the creation of the European Union, a lot of European nations were BANKRUPT, and their currencies were worthless.
When I look for example at the “Peseta” $1USD could get you 520 Pesetas, now you can sugar coat the Peseta with Euros, but you haven’t changed the thinking of the overall population, who still imagine the colonial era, where when PRICE CONTROLS didn’t work, the government would merely invade or conquer another nation.
Spain has lost a lot of territory, for example, in Latin America, because the Spanish were slow to EMBRACE capitalism or a market economy. Shifting gears, we move to countries like Canada and Australia, which have their own unique housing disasters.
Canada has its Canada Mortgage and Housing Corporation(CMHC) mortgage insurance disaster that nobody talks about, and Australia has its Lenders’ Mortgage Insurance (LMI). Canada’s CMHC, which is state-run, is far worse because it assists the federal government in competing with terrible local real estate policies.
So, with Canada’s real estate market, it’s compounded. Although most will disagree, I think Canada is actually overbuilt; yes, there are more homes than people need in Canada, but you’d never know it because most Canadians refuse to rent out their properties in fear of local housing/rental laws that might make their lives a living hell.
This is basically what’s happening in most parts of the Western world, and obviously, people who are anti-austerity are looking for something EXTERNAL to blame. It’s those darn immigrants, or it’s those low-life tourists causing these housing problems.
Are dark times ahead for real estate? Maybe because champagne socialists, like national socialists, just like the Democratic Socialists, all want EASY answers without austerity.
The National Socialists are archaic and uncivilized, imagining that the chosen race has been infiltrated by infidels, so if only we could get rid of the infidels, utopia would appear. The Democratic Socialists believe in a democratic economy, they imagine that POPULAR opinion trumps MATH, and then you have the champagne socialists; these are the idiot Climate Change buffoons who believe that BIG GOVERNMENT solves everything, including controlling the weather.
Just legislate it into existence, and all problems are solved in the Champagne socialist way. The Champagne Socialists are also laziest amongst the socialists, they’re short-sighted, imagining current infrastructure can’t crumple no matter how bad the policy they implement.
Champagne socialists are usually the ones who create the most destruction, and they’re the ones in charge, so yes, dark days could be ahead for the Real estate market.