I live in the UK, but our economy seems to generally follow the US except without any increase in productivity for over a decade and wages are trending towards minimum wage.
Ah. Well, as you can see, I am most familiar with the US economy…
but uh… broadly speaking, ya’ll did the whole Brexit thing, and as best I am aware off the top of my head, ya’ll are a bit more economically intertwined with the US than most of the rest of the EU…
So, as the US collapses, that’ll disproportionately affect the UK as compared to other Eurozone economies, the financial / currency / bond market situation in the US will ‘contagion’ over to the UK faster, as will demand collapse for material goods and services.
But, I’d have to look over UK econ data in detail to be more specific than that.
Out of curiosity, can I ask what you approximatelty paid for the house in the UK?
One weird thing that could start happening (or intensifying) is that as the US dollar devalues… is that people/corporations with mostly USD will start trying to buy homes in places that they expect will have relative currency appreciation compared to the USD… basically, slow or long term currency arbitrage via homes as mainly financial assets.
£230k which is on the cheaper end, got a small bungalow.
A fair few people here already dislike Londoners buying property and driving up prices because they earn more than the local population can. Tourist destinations get it particularly bad. I think a few parts of Wales have increased council tax (similar to property tax) for second homes that are left empty. An empty house doesn’t contribute to the local economy.
Yeah, in the US, that’s significantly on the cheaper end as well, broadly speaking… i think what you call a bungalow is roughly what we’d call a starter home… but the problem in the US is… we don’t really build those anymore, the construction companies can only turn a profit by making larger homes, that are also built to very shoddy standards.
That and the only areas with $315 or lower as a median home price are quite poor, with terrible economies and no reasonable transportation options… and the US largely murdered remote working after the corpos realized it would make their commericial office values collapse.
US median home sale price, over the whole US, is about $425k as of May, about £315k.
Maybe that will change after the whole housing market crashes, but that level of specificity is way too hard to meaningfully predict.
As to a second home tax… yeah you would think this we be an obvious thing to do, to combat gentrification, or at least make it have more fair broad social impacts… but here in the States, nearly nowhere actually does it, and there are a ton of legal loopholes and bs you can do to get around it.
Instead, a lot of places actually encourage second homes with tax incentives and write offs for getting one… because… entrepreneurship, or something.
I live in the UK, but our economy seems to generally follow the US except without any increase in productivity for over a decade and wages are trending towards minimum wage.
Ah. Well, as you can see, I am most familiar with the US economy…
but uh… broadly speaking, ya’ll did the whole Brexit thing, and as best I am aware off the top of my head, ya’ll are a bit more economically intertwined with the US than most of the rest of the EU…
So, as the US collapses, that’ll disproportionately affect the UK as compared to other Eurozone economies, the financial / currency / bond market situation in the US will ‘contagion’ over to the UK faster, as will demand collapse for material goods and services.
But, I’d have to look over UK econ data in detail to be more specific than that.
Out of curiosity, can I ask what you approximatelty paid for the house in the UK?
One weird thing that could start happening (or intensifying) is that as the US dollar devalues… is that people/corporations with mostly USD will start trying to buy homes in places that they expect will have relative currency appreciation compared to the USD… basically, slow or long term currency arbitrage via homes as mainly financial assets.
£230k which is on the cheaper end, got a small bungalow.
A fair few people here already dislike Londoners buying property and driving up prices because they earn more than the local population can. Tourist destinations get it particularly bad. I think a few parts of Wales have increased council tax (similar to property tax) for second homes that are left empty. An empty house doesn’t contribute to the local economy.
£230k is approximately $315k…
Yeah, in the US, that’s significantly on the cheaper end as well, broadly speaking… i think what you call a bungalow is roughly what we’d call a starter home… but the problem in the US is… we don’t really build those anymore, the construction companies can only turn a profit by making larger homes, that are also built to very shoddy standards.
That and the only areas with $315 or lower as a median home price are quite poor, with terrible economies and no reasonable transportation options… and the US largely murdered remote working after the corpos realized it would make their commericial office values collapse.
US median home sale price, over the whole US, is about $425k as of May, about £315k.
Maybe that will change after the whole housing market crashes, but that level of specificity is way too hard to meaningfully predict.
As to a second home tax… yeah you would think this we be an obvious thing to do, to combat gentrification, or at least make it have more fair broad social impacts… but here in the States, nearly nowhere actually does it, and there are a ton of legal loopholes and bs you can do to get around it.
Instead, a lot of places actually encourage second homes with tax incentives and write offs for getting one… because… entrepreneurship, or something.