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Owning a multimillion dollar home doesn't do anything for you if every other home is just as expensive. It's just a "housing token", and unless you can move out
by cmrdporcupine 3y ago
Owning a multimillion dollar home doesn't do anything for you if every other home is just as expensive. It's just a "housing token", and unless you can move out of the market and into something way cheaper, the value on the house means nothing. There aren't really any bargains in Canadian real estate anymore -- even remote and small cities on the prairies or in the Atlantic provinces where jobs are more scarce are carrying huge sticker prices.
Contrary to the article, I actually think the opposite has happened: when I still lived in Toronto it was nauseating how often people blathered about how wealthy their property had supposedly made them. Bragging about the value of your home, and thinking it makes you rich is the most annoying Toronto party conversation topic and social phenomenon of the last 20 years.
- Analemma_ 3y agoI mean, if that were true, then homeowners should have no problem with policies intended to knock down the price/value of homes. But that is definitely not what we observe, so I think something is missing in your theory.
- cmrdporcupine 3y agoPsychology
- quickthrower2 3y agoAn few things: Someone with an expensive house has the option to cash that in and buy a cheaper house somewhere else. There money is welcome in every country and city in the world! (Residency permitting). The high value allows borrowing against the property to invest. Assuming you can get the loan. But it is a prerequisite to have equity! Obviously with a mortgage a loss in value loses % equity and at some point that becomes negative equity. That said homeowners with kids might welcome policies that slow the rate of growth in housing prices.