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But isn't that more of an illusion of greater wealth? I mean, if you don't stay in your current house, you will just swap it for another one. The price level
by starkd 4y ago
But isn't that more of an illusion of greater wealth? I mean, if you don't stay in your current house, you will just swap it for another one. The price level doesn't really matter, just as long as you can still get something of equal value.
- margalabargala 4y agoIt does matter, because the loan is easier to pay off. You're right about house value increases being a wash, but inflation helps people with large loans.
- nemo44x 4y agoIf you borrowed money to pay it off and you're still relatively early in your loan then it's great. You just got a massively discounted house. Anyone who bought a house just before the pandemic and locked in an ultra low interest rate to boot is going to make an absolute fortune on their home in 10 or 15 years time. They probably have already with prices up so much. Interest rates will cool it down but cost of living adjustments will counter that.