House prices in Lebanon keep rising up, we’re talking triple, x 4 or x 5 the price that it had 3 years ago, I wrote about this in February 2008, and things have only been getting more expensive and worse! Anyway, this thing over here has been referred to as Lebanese Housing Bubble (we all are waiting for it to burst sometime soon, and we will all be covered with gum?), you can read about the main reasons behind this bubble here (Wikipedia).
Two of the main reasons that led to this bubble are:
1- Lebanese expatriates who are financially comfortable are buying houses back in Lebanon, and landlords are taking advantage of the potential buyers wealth
2- Foreigners, mostly from the Gulf (meaning, REALLY financially comfortable), have also been buying a lot of villas in the Lebanese mountains with crazy prices indeed.
Where does this leave the Lebanese young person in his/her late 20s employee? Sitting there wondering how the hell he/she is going to save around 40’000$ as a first payment, for a 200’000$ house, that is barely 120sqm, and not built in a luxurious manner, not even close! Whereas the minimum wage in Lebanon is around 300$, and the average salary for someone who’s been working for 5 years is less than 1500$. Do the math please.
My suggestion is the following; two prices:
· Price X which is affordable for Lebanese residents
· Price Y which is X + W for foreigners, and the W goes to the government, this way there would be a control on the pricing (haha what a dream) that landlords set.
This way, the politicians in Lebanon can steal the money and have an even better life, I mean.. the government can benefit from this money to balance the country’s debt and invest in projects that create more job opportunities in Lebanon and open more business opportunities with other countries and improve the country (someone wake me up please…)
Oh, and how the hell are those landlords pricing their houses? Whatever happened to how old a building is, the facilities provided in the building (blu-ray in the elevator etc..), the luxurious items used to build it, the parking spots, the electrical doorway, the fancy concierge, the location of the house…
Everything seems to just be EXPENSIVE wherever and whatever it is!
Apparently, there seems to be a sort of similar problem in the UK.
Image courtesy of: TheFinancialHelpCenter.com
I would also like to share a comic that a fellow blogger/comic Sareen drew about that same subject a short while ago:
To view original post, please click here