IndexAffordable Housing Essay OutlineIntroductionPredatory Lending and Housing as a CommodityHuman Rights and ResponsibilitiesGlobal Surplus Capital and Business InvestmentSteps to Address the ProblemConclusionAffordable Housing Essay ExampleHousing Financialization ( essay)Works CitedAffordable Housing Essay OutlineIntroductionIntroduction to Financial Engineering and its Impact on HousingThe Need for Regulation and Alignment with Sustainable Development GoalsPredatory Lending and Housing as a CommodityThe Role of Predatory Lending in the Housing MarketHow Housing Is is transformed into a commodity market with short-term profit objectivesThe impact on incomes of small and marginalized groupsHuman rights and responsibilitiesDisregard of human rights in the housing sectorResponsibilities of government and financial institutionsAusterity measures and inequalityGlobal capital surplus and corporate investmentL influence of global capital surplus on housingSafety deposit boxes for institutional investorsImpact on retail investors and first-time buyersSteps to address the problemFinancial products regulation and disclosureTaxation of remote investors and speculative gainsProtection of small investors and first-time buyersRedesign of foreclosure lawsConclusionThe need for global efforts to address the financialization of housingBalancing housing as a right with affordability and capability considerationsSample essay on affordable housingFinancialization of housing (essay)Financial engineering has increased complicated products available over the counter, but their understanding of retail investors today is limited. The use of various tools during the 2008 financial crisis initially led banks to profit by offloading CDOs on the poor credit quality of the underlying asset. Therefore regulation is necessary to maintain a level playing field and ensure a housing element for all sustainable development goals. This lending culture opened the door to predatory lending practices for subprime borrowers and turned housing into a commodity market, where the goal was to make short-term speculative profits. This arbitrage opportunity attracted short-term money into the market, and the increase in liquidity led to supply-demand anomalies in many large cities. As a result, the growth of the financial system has outpaced that of the real economy in many developing countries. Rising prices turn their life savings into a real estate investment and make their financial position highly leveraged. This leads to large-scale foreclosures in low-income and marginalized groups, increasing inequality in the social fabric of society. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Another argument against the financialization of housing is the complete disregard of the human rights aspect of housing. The government, private equity funds, financial institutions and investment banks that make money in the short term, no one is responsible when it comes to the issue of the "housing for all" goal of the Sustainable Development Goals. In many cases, states are obliged to defend the interests of financial institutions and any measure aimed at correcting the situation is also oriented in their favor. Spending on bailouts after the financial crisis exceeds spending onvictims of the subprime mortgage crisis. In many European countries, spending on affordable housing and infrastructure has been reduced since the crisis. Austerity measures were introduced against low-income groups. Measures such as tax increases in Greece after the crisis led to large-scale protests and showed disparities in systems and inequality. In some cases, lenders have also been accused of taking on too much debt rather than unethical lending practices and asset quality controls that lead to increased market tension and the erosion of markets.lifelong savings . One of the effects of the global capital surplus in the real estate market has led to the creation of safe deposit boxes for institutional investors and companies. This agreement, unfortunately the countries that attract capital, leads to the setting aside of money in “hedge” cities and to a rapid escalation of prices. This leaves the retail investor and first time buyer in a dilemma as they are forced to go beyond their ability to purchase properties, leading to highly leveraged positions. This serves as a dual incentive for businesses: As prices rise and, in the event of foreclosures, asset reconstruction companies (ARCs) can amass high-value assets for cheap money. Rental homes and mortgages owned by remote investors operating from offshore offices lead to a flow of money out of the city and increase income inequality between countries and between people. There are numerous steps a state can take to straighten out the housing market. There needs to be regulation of financial products offered only to those who can afford them. While offloading MBS from different asset tranches, companies should mandatorily disclose and hold a fixed percentage of such asset tranches in their portfolio. This will improve the credit culture of the system and control predatory lending practices. Countries and even states can tax remote investors and fix liabilities on speculative gains made in transactions. Capital gains tax can be structured based on how long you hold the asset. Such measures have been adopted by some countries and will help bring money back into the host economy in the form of taxes. This can be used to meet the idea of ​​affordable housing in various cities and allow the financialization of housing to lead to a positive outcome. Countries should make an effort to protect small investors and new buyers at the diplomatic level. Various international conventions and treaties that protect offshore investments and allow foreign ownership and tax benefits should also provide protection for local homebuyers as they invest in home and community construction. Foreclosure laws need to be redesigned and should only be used as a last option, that is, after exploring restructuring and other tools to resolve disputes. To achieve all the goals of the SDG, states can make it mandatory for adequate rehabilitation of the displaced population, along with a fixed percentage of affordable housing in all projects undertaken. Please note: this is just an example. Get a custom paper now from our expert writers. Get Custom Essay So, efforts need to be made on various fronts such as asset quality checks, lending practices, taxation of remote investors, allocating a specific portion for affordable housing, taming excessive speculation in the real estate market, redesign of financial engineering products and, 12(1), 99-129.