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Fair, but buying a long lived asset to both save money and get a larger capital gain is different than rushing to buy depreciating goods because one is worried
by Ericson2314 4y ago
Fair, but buying a long lived asset to both save money and get a larger capital gain is different than rushing to buy depreciating goods because one is worried their prices will go up further.
More broadly, if there was price stability for single family homes, buyers would be outraged!
- thehappypm 4y agoAs a homeowner I’d be fine with price stability. I don’t see why the price should go up (and that just increases my tax burden). I certainly don’t want to be in the hole if I sell though.
- Johnny555 4y agoI agree, I bought my house as a home, I really don't need or want it to go up in value. I think many people would be better of if we had policies discouraging residential housing as an investment. My home's value has gone up over 30% since I bought it around 18 months ago (and 50% since 3 years ago) - I couldn't afford to buy my own home if I were house shopping today.
- Ericson2314 4y agoOh don't get me wrong, I would love a world with housing price stability. Renting with a land value is good.
- dragonwriter 4y ago> More broadly, if there was price stability for single family homes, buyers would be outraged! If there was price stability for homes, people buying them for living in rather than as investments would be happy, since affordability would increase with real (or even nominal, depending on the sense of “stability”) wages.
- Ericson2314 4y agoIn fact, there would hardly be any reason to by them. Just rent!
- dragonwriter 4y agoIf you can find a long-term, fixed-price lease, sure. There are reasons to buy besides price appreciation.
- Ericson2314 4y agoMicroecnomically, sure. Macroecnomically, if housing prices were stable, I am pretty sure the other reasons would evaporate.