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Not necessarily. If you have an asset worth 100k and a mortgage for 200k, then it isn't very good if you want to move, or change mortgages. Also, if you're a
by benj111 4y ago
Not necessarily.
If you have an asset worth 100k and a mortgage for 200k, then it isn't very good if you want to move, or change mortgages.
Also, if you're a net seller (downsizing, moving to a care home) you may have been relying on funds locked in the house for other things.
So this is generally good for younger people and bad for older people.
- vasco 4y agoI'd choose a young person getting their first home over an old person moving to Florida, but I'm a young person so I'm biased.
- benj111 4y agoThe pensioner who can't afford to move to Florida is now staying in their nice big family home, instead of selling it to a young growing family. Also that pensioner may now be a drain on the state, so it isn't a simple choice. I don't disagree with your broader point though. This (high house prices) is basically a massive transfer of wealth from the young to the old. Unfortunately the old are the ones that tend to vote, so the politicians won't fix it. But until the young as a class do start voting, I don't think it reasonable to blame the old and the politicians for the problem, this is democracy in action.