Capital Outflow & Unanchored Foreign Buyers of Real Estate

What happened to our economy? Cheap credit, and quantitative easing created by central banks both domestic and foreign as a means to reinvigorate the economy, instead found their way into real estate, which was considered by foreign buyers as a store of value.

You have a regional or local economy which cannot quantify or estimate the amount of foreign money landing on its shores. House prices and rental accommodation costs skyrocket and continue to rise to unsustainable levels where true price discovery and fundamentals no longer exist. The local economy suffers as a result when 60 -70% of household income is spent on a mortgage or rent and this is the new normal, not the exception. What's left for food, outings at restaurants or entertainment? Not much and the local economy comes to a grinding halt.