The driver here is if they can get low interest to zero interest loans. If we remove that then problem blows up.
We could do that by changing how banks come up with the interest rate on corporate loans versus individuals who want loans.
We could do that by changing how banks come up with the interest rate on corporate loans versus individuals who want loans.
However, if interest rates rise, the EV drops, and sentiment may shift which will substantially increase the risk that market appreciation strategy fails.
Eventually the music stops and enough investors stop pumping the asset class, it peaks, and the lack of retail ability to shoulder the debt-load results in collapse in pricing - some major US banks have indicated that mortgage originations are down 90% this year.
Interest rates are only part of a larger calculus. What ultimately blows the problem up is a shift in perception about real estate being a good investment vehicle for large sums of capital.