Increasing house prices

Question: In Korea, it is becoming difficult for ordinary people to buy their house due to the soaring house prices. And regarding the type of housing, the number of high rise apartments is increasing, but the lifespan of them is not so long. Given the current situation in Korea, how can we improve the situation to make it easier for people to buy their own homes? And how will the increase in the number of high rise apartments, which are not very long lived, affect our society?


 Answer from the Ascended Master Mother Mary through Kim Michaels. This answer was given during the 2021 Webinar – Being the Open Door for Planet Earth.

Well, again, you see a similar problem in most modern nations, that housing is becoming more and more unaffordable. The reason for this is primarily that the modern democracies have not realized the responsibility of the government. The responsibility of the government in a modern democracy is to make sure that private companies or private speculators cannot make an undue profit off the people, from the people.

There needs to be a mechanism, and it has been done in some nations, it can be done in various ways, but there needs to be a mechanism so that the state limits the profit that the companies can make from housing. You need to find ways to limit speculation. You need to find ways to have higher demands on the buildings that are built so that they have a better quality that can last longer, so they have a better environment, with more recreational facilities, for example, better transportation, and so on, so that it is not just profit driven.

There are some nations that have experimented with having companies created that are not-for-profit companies. But have as their job to provide affordable apartments. The reality of the situation is that this shows you the limitations of capitalism, capitalists cannot stop themselves from trying to make the biggest possible profit in the short term, even if it harms themselves in the long term. It is only the government that can step in, take a long-term perspective and realize that the current trend of ever-increasing housing prices will in the not-so-long run, long term, actually limit the entire economy and therefore either cause an economic downturn or recession, or at least slow down economic growth.

It is not difficult to create research that shows that when people spend more than a certain percentage of their income on housing, then the entire economy goes down, because they do not have enough money left over to buy other consumer goods. Therefore, many businesses cannot sell their goods, prices go down. And therefore, a few speculators make a lot of money, but the broader industry actually makes less money. There is simply a limit, where a certain percentage, and it varies a little bit from country to country, but a certain percentage of people’s income can go to housing. And beyond that, it will limit the economy. And it is in the interest of everybody, except a few speculators, to find that balance, where people have affordable housing. But it can only be done by the government, because you cannot expect these private speculators or private building companies to do it by themselves. As long as they see a profit, they will go for that profit. And it is only the government and the people backing up the government that can limit this.

 

Copyright © 2021 Kim Michaels