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83 points Michelangelo11 | 5 comments | | HN request time: 1.05s | source
1. andrepd ◴[] No.44375613[source]
> Indeed, 70% of the new housing supply is acquired by foreign investors as a capital preservation strategy.

Housing being used as an investment vehicle is pretty much a global problem and one of the most pernicious consequences of modern capitalism. Be it Argentina->Paraguay or Russia->London or Germany->Spain.

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2. ◴[] No.44375697[source]
3. kgwgk ◴[] No.44375774[source]
Real estate has been an investment vehicle used for capital preservation for millennia.
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4. pieds ◴[] No.44375792[source]
In some ways, it is just more noticeable now. Because even countries like the US had a huge push for public infrastructure in the road network, state schools and energy when those things were both more and less important than now. Now urban housing, broad education and energy efficiency have become more important with changes in society and the economy. But there isn't the same public influence in those areas now.

That is, there were always estates, land, and business. And private education. Just that public investment created and enabled other opportunities. A massive road network enabled sprawl where additional housing could be constructed at a decent cost. Now the economy wants density for network effects, but there isn't a similar expansion in public transport. So urban housing has become very valuable.

5. andrepd ◴[] No.44382396[source]
Not quite. Owning land / land rights for productive uses has been the pre-eminent form of capital ownership in history up to the modern age. But this is building or buying solely as a vehicle for speculation, i.e. with only market value in mind. That is a capitalist "innovation".