Housing market is highly profitable. How to enable that money to be spend elsewhere?

in #money2 years ago

The housing market solves big problems and thus also grants big profits. Have big problems there that aren't solved permanent binds huge amounts of money to this market.

The only people that really need to buy a house are homeless people. Those either can’t or don’t want to buy/rent. Buying a house as investment has people rent a house. Renting is cheaper and less problematic than buying: more freedom of movement, less upfront payment, flexibility if income changes, possible to move if immobile troubles arrive.

Buying a house for self use is giving high upfront costs, standing costs due to repairs and taxes. Renting a house out enables a scalable monthly income. Rent pays for costs of house, maintenance, taxes and tenant management. As long as it’s cheaper and less problematic to rent, people will invest in houses to then rent them out.

If house quality would increase, house ownership would increase and rental would therefore go down with the demand. Houses need to be able to be build faster, prettier and with less/to no maintenance. Houses need to be fixed easily in case of damage and customizable to later adjust at changing needs. Customizing needs to be easier than renting a new house.

Current artisanal building techniques increase demand for investors. Investors need to drive higher demand for their new houses. Thus the houses will have their designs build after the majority opinion and need. Houses look nice in general, but don’t stand out to prevent cutting down market share too much. Thus rental houses can never guarantee highest quality – fulfilling all demands of the future resident.

Fast and high efficient construction with constant ability for full customization would decrease need for new houses immensely. Properties with great locations would still be highly viable, but decrease in prize if development costs become also more efficient.

House construction would shift more to customization and individualization. Making houses more efficient, aesthetic and useful. The costs for basic house would decrease and maybe be close to free, to get tenants as customers for the customization market.

Additional result would be that more complete houses would be moved to a new location, instead of switching rental places.

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