Quick meta note. SimCity is now only taking up about half of my free time, and I foresee the usage rate dropping down to around a quarter very soon. So I do plan on churning out more articles. But this one's gotta be short.
The Wall Street Journal came out with an article that highlights investors' growing appetite with rental properties. Institutional funds have been pouring money into entire neighborhoods in order to collect rent. As the article notes, this reflects the insatiable appetite for yield that has driven capital into alternative investments since interest rates are so low.
If you're creditworthy, there has never been a better time to buy real estate. Interest rates are the cheapest they've ever been and that means things like 3.5% APR on 30 year fixed mortgages. That is absolutely incredible, especially when you consider the inflationary pressures later on down the line.
In short, the government is begging you to do something with the low interest rate environment they've provided for the past 4 years. I bought a foreclosed condo 2 years ago at a 4% APR 15 year fixed mortgage (which I thought was an absolute steal at the time).
This, I think, reflects the fundamental problem with the Federal government's current monetary policy. Everybody wants to kickstart economic growth by consumer spending, but the people with the money would rather chase yield.