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Edge cases? That's the entire middle class you just called an edge case. You might be able to do the math, they can't. All they know is that they bought for £1
by mattmanser 12y ago
Edge cases?
That's the entire middle class you just called an edge case. You might be able to do the math, they can't. All they know is that they bought for £150k, sold for £175k, woohoo, they made £25k. Doesn't matter their new house was even more expensive.
Also the baby boomers cashed out big on their houses before the recession, so their children irrationally believe that's what's going to happen to them.
All your other (pretty good) points now look slightly ridiculous by association because you're so out of touch with normal people.
- netcan 12y agoI meant that instances where homeowners really win or lose significantly from rising house prices are edge cases. They exist and are common. But, they go both ways. I believe that the mentality you are describing is generated by the system moreso than it generates the system. If people expected their £150k house in Norwich to be worth £125k in 10 years, the whole psychology would change. people would see houses as what they are. Things that cost money. Things you live in. *I also think that all the mortgage encouragement is counterproductive. If 10 year loans were the norm, house prices would be lower. Own-to-let would require higher returns (7-9%) over a lower purchase cost, but housing as an overall cost to the people in the country would be lower.