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> Uhh, why? Unless you were planning on selling up and spending it all on a cruise or something house prices are immaterial to home owners. I don't know how it

> Uhh, why? Unless you were planning on selling up and spending it all on a cruise or something house prices are immaterial to home owners. I don't know how it is in the UK, but in Paris, I hear from a lot of people that their retirement plan is to sell their Parisian apartment and move to a lower cost area with what they've gained. Doesn't work out if your "investment" is underwater.

globular-toast 1y ago
If the Parisian apartments become undesirable and the low cost areas become desirable then, yeah, it wouldn't work out. But that's not what we're talking about. House prices going down across the board makes no difference. You sell your apartment for a lower number but you buy the new place for a lower number too. The numbers are just made up and don't matter. You can't eat a number and it won't keep you warm or dry. It's so weird to me that even in a place like this people can't see beyond the numbers.
- dustincoates 1y ago
  You don't need the high cost and low cost areas to flip to be caught out. You just need the high cost areas to decrease in price and then it's immaterial whether the low cost areas increase in cost or not. There's no way they can decrease the same amount as the high cost areas, seeing as there's a floor. Then that excess that people had planned for is no longer there. > The numbers are just made up and don't matter. You've asked why people care. They care because they've made their retirement plans on a made up number. Is that reasonable? I don't think so, and it's why I'm renting not buying. But you're tilting at windmills at this point to explain to people who have a vested financial interest why they're wrong.
Qem 1y ago
> Doesn't work out if your "investment" is underwater. With climate change it will be literally what will happen to many homeowners in low lying coastal areas some decades from now.

globular-toast 1y ago

If the Parisian apartments become undesirable and the low cost areas become desirable then, yeah, it wouldn't work out. But that's not what we're talking about. House prices going down across the board makes no difference. You sell your apartment for a lower number but you buy the new place for a lower number too. The numbers are just made up and don't matter. You can't eat a number and it won't keep you warm or dry. It's so weird to me that even in a place like this people can't see beyond the numbers.

dustincoates 1y ago
You don't need the high cost and low cost areas to flip to be caught out. You just need the high cost areas to decrease in price and then it's immaterial whether the low cost areas increase in cost or not. There's no way they can decrease the same amount as the high cost areas, seeing as there's a floor. Then that excess that people had planned for is no longer there. > The numbers are just made up and don't matter. You've asked why people care. They care because they've made their retirement plans on a made up number. Is that reasonable? I don't think so, and it's why I'm renting not buying. But you're tilting at windmills at this point to explain to people who have a vested financial interest why they're wrong.

Qem 1y ago

> Doesn't work out if your "investment" is underwater. With climate change it will be literally what will happen to many homeowners in low lying coastal areas some decades from now.