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Position of housing markets

German Logo of the ECB.

German Logo of the ECB. (Photo credit: Wikipedia)

Begin this year publish CPB analysis of the consequences of the current financial position of Dutch banks in relation to the mortgage and housing markets and, following from that, for the current situation of the Dutch economy.

CPB Netherlands Bureau for Economic Policy Analysis to analyses the consequences of the current financial position of banks in relation to the mortgage and housing markets and, following from that, for the current situation of the Dutch economy. This study was to include both the economic and structural aspects of that relationship. CPB honors this request in so far as the questions can be answered on the basis of available expertise and research capacity. The conclusion is that the mortgage interest rates in the Netherlands, according to European Central Bank (ECB) statistics, are around 1% higher than in the surrounding countries.

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“Save the housing, build rental housing”

Even before the Romans give a good handle: would you buy a healthy housing market, build a lot of good rental housing.

media_xl_1661888To prevent housing prices explode once again, the buyer can also rent decently. Now remember him that choice, says Rik Smits.

“Si vis pacem, para bellum,” said the ancient Romans: if you want peace, prepare for war. As the Romans knew little else than war, we can translate that wisdom very well: look beyond your nose. For example, in the housing market, because the report of the committee Verhoeven we shoot no nose length: housing prices have exploded – we already knew, everyone counted himself rich – old hat, there was madness credit sought and given – yawn, municipalities and real estate sector played a semi-fraudulent pyramid scheme on any other costs – what else is new? And as icing on the cake: everyone participated and benefited, so everyone has debt.

The latter is not true, now join the millions of tenants who pay for the damage exceeds example, no blame. But a lie is so safe, because if everyone has debt, one is called to account. It is glass and pee: PvdA and VVD already turning their equally worn as irrelevant mantras, while the dogs of the media in a cozy corner along the tear moribund mortgage.

Anyway, in guilt and punishment a man can not live. So let’s have it specifically about how the housing market can come without the risk that the same misery again arises. Feet
Even before the Romans give a good handle: would you buy a healthy housing market, build a lot of good rental housing. This seems paradoxical, but it is not. Neoliberals have had and at one point an iron right: a market can only function in consumer choice. They forget convenience only often that it is essential to that freedom that belongs to the choice of purchase to see off. Not purchase is the safety valve that prevents price bubbles arise.

When something like ordinary bread that works fine. Is one baker too expensive, then we go to another, and they are all too expensive, then we eat a while brioche. Or Dad or nasi if necessary. That will prijsopdrijvers learn! But to live there, you can not even temporarily waive. Well of purchase.

Pressure relief valve
The indispensable stabilizing pressure relief valve of the homes for sale market is a large, high competitive rental market. But there is knowingly not expected willingly or unwillingly, people should buy. That is fifty years old, still fanatically pursued Hague houses jihad that has caused all current misery. But is such a viable rental market? Can you build modern, good affordable rental housing for the middle class in a profitable way? It appears so.

Builders say that they already have put 90 thousand euros. Reasonable house down with modern tools and techniques Let’s not do screwy and there, including some foreground (in an apartment that does little to be) for a nice not too large middle-class example of making 200 thousand euros. That money we fund the same amount for another thirty years. Calculation of the total 15 percent for management and maintenance, and suppose that we want as a landlord exactly like a regular buyer at the end of the ride home free possession.

Pure profit
From that moment, every penny that the house still yields by rental or sale almost pure profit. The situation as we reach the tenant who pays the costs incurred thirty years of acquisition and maintenance, or the difference between the costs incurred and the value of the house. In this case, that a total of 260 thousand euros, say and write representing a rent of 722 euros a month.

It’s not about that for a nice house very affordable 722 euros, but the idea. To the order. I like to let me explain by an expert why the previous reasoning miserably wrong, irresponsible and even dangerous. But until that time seems a good and extremely affordable priced rental market feasible. The only requirements are that good will in politics, not too crazy land speculation by municipalities and a little awareness of their core by the corporations that control the rental market.

Translate from the newspaper Volkskrant