Posted by: Dirk | August 29, 2007

Spaniards decline to rent flats

El Pais wrote yesterday that the government’s plan to help young people pay their rents is falling apart for a not suspected reason: young people don’t want to rent. In Spain, it is common knowledge that house prices always rise. This is historically right, at least since price notations began sometime in the middle (?) of the 20th century. So, everybody invests in flats, and not in stocks or bonds. People who rent are asked why they pay money for nothing when they might as well use the same money to own the flat. To outsiders this behavior seems quite irrational.

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