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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (17179)	3/21/2002 12:04:11 PM
From: elmatador	Read Replies (2) \| Respond to of 74559

The market builds expensive properties for the ones that can afford to buy without resorting to mortgages. You have to know that Brazil has the sixth worse income distribution in the planet. So there is available a small amount of people with a hell of money. But the deficit of housing (for the formal economy at least, because you may have already guessed that with such brutal distribution of income there are a lot of people that can't afford proper shelter) was taken care this way: There was hyper-inflation up to 1994. Then, property was hedge against inflation so there wasn't much a deficit of housing because people keep value in bricks and mortar. Countries with stable currencies tend to have deficit of housing: Japan, Germany and France are case in point. With stable currencies there isn't much need to hedge against inflation owning property.