The fall of Q2 houses?

Day 4,211, 03:15 • Published in Netherlands Iran • by Janty F

Greeting, citizens of Netherlands (and eRepublik on its own),

ever since my Presidency, the Dutch government is supporting the usage of both Q1 and Q2 houses with subsidy for our citizens. I will not go into the lengths of explaining, why using these houses is important - the Ministry of Finances keeps repeating it every single month, and if you still do not use houses on your own - shame on you 😛 .




However, there has always been a... condition, especially with Q2 houses. While Q1 houses are profitable on their own (so in my opinion, we should not even subsidize them, as they subsidize themselves... and if you do not use Q1 houses, you basically lose money and you suck 😛 ), Q2 houses are only profitable, if you combine them together with Q1 housing... or you will subsidize one Q2 house per month. Of course, they still bring benefit of increase production = increase of tax income and increase of products, which are available on the market (and not even talking about the increase in energy, which is another separate topic). However using solely Q2 housing on its own without any additional benefits is generally unwise for ordinary citizens.

So to summarize a general rule, which is even applicable in our government program:

If you want to use Q2 houses for working, always use both Q1 and Q2 houses together!!



During last three weeks, there has been a shift in international market , which we need to take into consideration, thinking about the aforementioned rule. Let's see, if you spot the shift in the following graph. It contains lowest price of Q1 house, and Q2 house on international markets, together with the highest available salary on international job market taken each week. And yes, it is small intentionally 😂 :

You see in last three weeks a sharp increase in all the three measured parameters. Which is to be expected, as salaries and house prices go together hand by hand, and the inflation of currency in this game seems to find no boundaries as of yet. However, you might notice that increase in Q2 house prices is... more steep than increase in Q1 house prices, and more steep than the increase in salaries as well. What does it mean in general?

- Q1 housing is becoming a bit more profitable, as salaries grow faster than Q1 housing cost
- Q2 housing is becoming even more unprofitable, as salaries grow slower than Q2 housing cost



The main question (which is relevant, amongst others, for our Dutch housing program)... will these two effects cancel out, and will the profit remain the same? The answer is... NO. As the following graph shows:


... using Q1 and Q2 house together (yellow columns) nowadays brings less and less advantage, and for people with smaller salaries, it might already turn too disadvantageous. Of course - do not take the numbers above at face value - each person has different salary, buys houses for different prices, and has different house activation cost (which is not even taken in consideration here). However, the trend is obvious.

What does it mean? Well - if this trend will continue, and we will experience another spike or two in Q2 house prices, both individual citizens and Dutch government will have to rethink, whether or not investing into Q2 houses is still worthwhile - and act accordingly.



If you have found any mistake in the article, or you want to present your opinion on the issue, I will welcome your comments 😉

Janty F
Concerned citizen of eNetherlands