• FundMECFSResearch
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    2 months ago

    It’s assistance not giving. I think it’s just a fund you can borrow from to get enough to start a mortgage.

    It would also only apply to people who can’t afford the mortgage.

    So it’s not going to impact house prices in the sense you say it would. Except slightly increasing demand to buy and thereby decreasing demand to rent.

      • FundMECFSResearch
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        2 months ago

        The increase in demand will a little. But not near the amount the aid is helping. We are talking a different order of magnitude.

        • Liz@midwest.social
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          2 months ago

          I’d have to look at numbers to say one way or another. I do know that the bottom of the market is already disproportionately expensive for what it is, but it’s been a while since I learned about that that so I can’t explain it to satisfaction.

    • ECB@feddit.org
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      2 months ago

      In the UK a similar scheme just led to the entry-level segment of the real-estate market inflating faster than the rest.

      It also led to a rise in more ‘luxury’ entry-level properties being built.

      Again, it’s not exactly the same concept, but in the case of the UK, most economists agree that most buyers actually would have been better off if the policy had never been introduced, since the price rises ended up outpacing the value of the assistance.