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proof_required OP t1_j9jtn0h wrote

Reply to comment by 18gr in [OC] Median House Price to Income Ratio By Country by proof_required

I suppose never ending war and poverty would be the big cause.

In general what we see here is even with all the exorbitant housing prices in most of developed countries, the situation is much worse in poorer part of the world. Iraq and Palestine seem to be the only odd country in bottom 20.

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18gr t1_j9jwlyh wrote

Yes but it would suggest that house prices remain high and buying remains desirable?

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Inaksa t1_j9s28v8 wrote

I can speak about the argentina case (i would assume is the same in other countries) there are a few reason:

  1. no credit even a couple with an above average or average income is not able to get a mortage.

  2. salaries are ultra low but houses are valued in usd.

  3. traditionally real estate was seen as the safest way to store wealth. If you put the money in the bank there might be a confiscatory measure (see Argentina’s crisis of 2001, particularly “corralito”) or a goverment pushed devaluation. As properties are valued in USD here, the government would be una le to take your house and you would have those savings protected, eventually you could sell the property.

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