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You're screwing the people who have to pay much more to get on the property ladder than those before them. In essence, it's a transfer of wealth, predominantly
by nvarsj 5y ago
You're screwing the people who have to pay much more to get on the property ladder than those before them. In essence, it's a transfer of wealth, predominantly from younger people (getting on the property ladder) to those who have been on it for a long time. What the younger generation will do when it's their turn (when most of them couldn't even afford to get on the ladder in the first place, nowadays), I don't know.
- shostack 5y agoCan you explain the "ladder" aspect of this?
- ralferoo 5y agoThe idea of the "property ladder" is that your first house is (relatively) cheap, and then as your get older your earnings increase and the old mortgage seems cheap, and maybe you now have children and want a bigger place, so you sell your property, hopefully making a profit on it, and buy something bigger that you couldn't have afforded before, and repeat. The reason for the ladder metaphor is that each house is a step towards the next bigger house, but if you hadn't bought the first house, probably you wouldn't have the increased equity available to make the more expensive house available to you. Likewise, with a ladder, you have to do all the steps in order.