We all look at our government officials to help us get through the rough times, like the ones that we are in at the moment because of the covid-19 pandemic. When the government pumps up the housing market, we all shudder to think of how it will affect us in our dreams of owning our own homes.
The local and federal governments claim that it is simply an increase in the housing market that goes right along with wage increases and the amount of workers that can return to their jobs.
On the other hand, you have people stating that the housing market is growing to the point of being out of reach. It is what we call an Australian property bubble. The prices will continue to increase until it hits a plateau in which people are unable to pay for. Once that point is reached the prices will come back down slowly until it reaches the top amounts that the people of the state can pay for without putting themselves into debt that they can never get out of.
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And of course, you have industry experts that argue that we are not in the middle of a property bubble, that we are actually right on track. To understand this, you need to know how the economy works. A good economy that is at full operations will work by raising the cost of things due to increased wages and the flood of people that have been able to go back to their jobs, or obtain new jobs, that pay better.
That is the basic working of a good economy. Obviously, there is much more to it than this, but we would need a book to go into details. For now, this is enough information to keep you informed.
Now, another thing that you need to keep in mind is that over the last few years the amount of people going for home loans has increased, as has the money made off them. This is because people are returning to full time work, and since the world is having issues obtaining good employees you can pick and choose who you want to go work for. That makes it a great time to upgrade your jobs, so you can make more money than you already do.
Another significant change that needs to be addressed is the fact that many people are working remotely now. The need for bigger homes with a room to work out of is becoming a necessity, rather than a luxury. You may be wondering what this has to do with the government hiking up the prices of the real estate industry, but bear with us.
Working from home has decreased the amount of people on the roads, which lowers the overall costs of driving because you no longer need to spend time or money on the trip, or the repairs that are needed due to excessive driving. So, the savings that you get can go back into a First Home Buyer mortgage loan. This circle creates the need for bigger homes and the ability of people to be able to afford those increased rates.
So, in both of the cases above (better job or working from home), you will see increases to the wages that people get. With those increases the costs of buying homes or property will go up. What this does overall is improve the economy. The economy of the entire state, which of course raises the economy of the country.
The government, while pumping up the real estate industry, is also offering various programs to help consumers qualify for mortgage loans. State and federal governments have both been pushing money into helping homeowners achieve their goals by giving grants, backing loans so that the lenders will give money out more freely, and they offer incentives to buyers to go through their programs. For instance, you may be able to save on the closing costs or the mortgage insurance that some loans require.
The lenders themselves are also helping people get into home loans by offering rock bottom interest rates. These all-time low amounts make it easy for first time homeowners to make the leap and get their own houses. It also makes it better for people that already have mortgages because they can refinance at a substantially better rate.
An increase in the economy of a nation increases its overall wealth and power. It may seem like a small insignificant thing, but to stay a country that is not stricken by poverty you need the economy to improve. Every increase in real estate value will improve the wealth of a nation. It is crazy to think that such a little thing can affect the nation that you have chosen to call home. But it does.
Once again you may be scratching your head, wondering how all this information ties into finding out who benefits from the government pumping up the real estate prices. Well, it all goes down to show you that everyone benefits from it. Sure, the overall costs are more than they used to be. People that do not take advantage of the current job markets will never be able to see the benefits of this increase, but those that have chosen to move up in their industries will have the ability to get their own houses, at a rock bottom interest rate.
As you can see it does all tie together. It may seem like the government is pushing people to take action, pushing people to go back to work, and pushing for the economy of the country to increase. You would be correct in thinking that because that is exactly what they are doing.
For a country to build, and maintain, their economic status within the world they need to continually improve and grow. Without the public people there is simply no way that the economy can grow. This means that a push by the government is needed to help themselves, and the people of the entire nation.