Folks in the United States should be very happy that they are able to live in such a free country with such abundance. And even when they get upset in the US, they do not have to look very far to thank their lucky stars. Whereas, we did have a housing bubble and a rather big crash, this was nothing compared to the problems under Hugo Chavez's socialist government in Venezuela.
Did you know that buyers of homes in Venezuela must put down a cash advance and also agree to cover any inflationary costs that are associated with the building during the time of construction? It's true and if I told you what the inflation rate has been, well you'd hardly believe it.
But now Hugo Chavez is calling for homebuilders to make huge refunds to the buyers and give them back money, even though they had signed such agreements. Who loses? The builders, why; because the government has not run a very wise economic policy.
Of course, to make matters worse, the government of that nation is also in the home building business and in competition with free enterprise companies that build homes. The private sector homebuilders have built twice as many homes last year as the government.
Venezuela's inflation in the last two years has been as much as 40%. Now there is a deficit of 2 million homes and apartments, and the shortages are getting worse as many homebuilders have stopped building due to the new government regulations as they can't make any money. Can you say; homeless?
But that's not all, the government has seized private property calling and underutilized. They have confiscated ranches and farms and even seized golf course, some may have converted into housing and others they have converted into parks. This is definitely class warfare at the hands of the government. Aren't you glad you live in the US and can choose your own contractor or home builder?