Oh bloody yeah. In a market where prices are determined by scarcity (rather than building costs), if the government subsidizes house buyers, the subsidy is immediately included in asking prices. So the gains go to current house owners, and "affordability" (from the point of view of buyers) isn't affected.
Analysis: Immediate gains to homeowners. Ongoing costs to the government (those interest-free loans) and long-term, long-tail costs to the government (those loan guarantees). Sounds like a vote-getter to me!
(Does this remind me of something we did in the US? How did that turn out?)
![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
(no subject)
Date: 2013-07-11 12:57 pm (UTC)Analysis: Immediate gains to homeowners. Ongoing costs to the government (those interest-free loans) and long-term, long-tail costs to the government (those loan guarantees). Sounds like a vote-getter to me!
(Does this remind me of something we did in the US? How did that turn out?)