how is real estate doing in your area? I am not seeing many sales, lots of listings, prices seem inflated, I am in Maule.How do you think real estate prices will be impacted by the approaching global depression?
Wait what global depression?
Wah wah wahhh
Lots of inflated prices as has been standard fare for several years where we live but we are in a nonstandard location that has some other factors in play
I expect that as the world progresses people/families will find it harder and harder to raise cash to meet solvency obligations. Payments on the second or only house. Payments on cars. Payments on gas to fill cars/tractors. In order to raise cash they will begin to sell what they couldnt really afford originally ans when they struggle to sell at inflated prices they will begin to sell at lower prices.
They who can maintain solvency longest win the best prizes
Here it is completely out of control. Asking prices for houses in our area are about twice what we paid only 3 years ago, and they don’t spend much time on the market.
It seems like there has to be a correction at some point the way prices have consistently increased. Will rising interest rates and banks being more picky finally lead to this?
Question, is it actually individuals investors snapping up these family homes at inflated prices or some entity similar to Blackrock or Vanguard like in the States?
I remember reading that with new apartments, it often is large investors that buy up various floors in a building or a whole building and rent them out. Here, the houses that have sold in our condominio seem to be owner-occupied.
I found one article about the topic:
Legions of squatters alternating every three apartments. (El Centro, Santiago)
All I see are properties that are literally producing zero income, and constructually speaking, nothing but physical deterioration.
In North America huge corporations are investing in all real estate (except office buildings) including single-family homes. They are outbidding the families with their offers way over asking and then renting the houses to fsmilies. In a cold, heartless practical way it makes sense. More people being born each day but a finite amount of residential homes. With construction costs skyrocketing, new construction is not happening. This phenomenon should be apparent in agricultural land also.
I do not see this bubble bursting except perhaps rural homes. The price of gas may cause a slump in their upward price value trajectory
I was never a fan of Santiago Centro but it was at least somewhat tolerable before. I can usually avoid going there, but the few times I had to pass through, during and after the estallido, it seems to have gotten progressively worse.
hlf2888 It seems like the trend towards large-scale investments to turn properties into rentals is happening in a lot of places in the world. Chile included, according to that article I cited.
I would not be surprised if house prices in our area come down off these highs somewhat, but I am okay with that. In the end, we just were sick of dealing with crappy landlords and the uncertainty of renting, especially since we have pets. Here we have our own space and much less neighbor drama.
Sorry to here of the decline of /Santiago but major cities around the world are dealing with inner city decay and crime. San Francisco, Los Angeles have become havens for drug users. A sympttom of the broken family and culture. Glad you have a home you are happy with <3
Every morning a squatter wakes up they hear a kaching on the money they saved.
Squatting the new glamping
The ever shrinking purchasing power of paper money where more and more of the stuff is needed to buy the same thing
Its really true. Went to seattle several years ago after having not been there for a few years and even then…the deterioration was evident. But the people living there were jaded and didnt realise how stark the contrast was…homelessness, drug use, crime, just a mess. The rot and deterioration has spread into the suburbs around the city proper. That was an eye opener. Oh and for the poor decision…err I mean privilege of living in or near a big city…you gotta pay too much dollars for too little of a cramped space
Cities in general no bueno…