poppet2 Posted October 8, 2013 Share Posted October 8, 2013 We DON'T shout for joy when the price of fuel, gas & electric and shopping bills increase, so why the opposite reaction when house prices increase? Link to comment Share on other sites More sharing options...
LeMaquis Posted October 8, 2013 Share Posted October 8, 2013 Because people can use their home and sell it on later. You can't do that with fuel. Property gives people a feeling of economic well-being if the price is going up. It's a bit of a false economy though as when they cash in they still need money to live somewhere else and whatever they buy will have gone up in price too. Plus middle class people whose properties have boomed in value often have children who can't afford to buy so they have to subsidise them. Link to comment Share on other sites More sharing options...
Cyclone Posted October 8, 2013 Share Posted October 8, 2013 We DON'T shout for joy when the price of fuel, gas & electric and shopping bills increase, so why the opposite reaction when house prices increase? Because most of the people who are happy haven't really thought about it or understood. ---------- Post added 08-10-2013 at 11:07 ---------- Because people can use their home and sell it on later. And then live in a box? You can't do that with fuel. Property gives people a feeling of economic well-being if the price is going up. It's a bit of a false economy though as when they cash in they still need money to live somewhere else and whatever they buy will have gone up in price too. Plus middle class people whose properties have boomed in value often have children who can't afford to buy so they have to subsidise them. A bit... How about, a totally false feeling of increasing wealth. Link to comment Share on other sites More sharing options...
truman Posted October 8, 2013 Share Posted October 8, 2013 And then live in a box? Errr no.. My mortgage will be finished shortly..my kids have grown up,I can sell up,buy a smaller place and have a big lump of cash in my bank.. Link to comment Share on other sites More sharing options...
geared Posted October 8, 2013 Share Posted October 8, 2013 You can do that anytime tho, increasing property prices don't mean that. The only way someone really cashes in on it is if a relative dies, and the money from their house is given to the family. Link to comment Share on other sites More sharing options...
truman Posted October 8, 2013 Share Posted October 8, 2013 You can do that anytime tho, increasing property prices don't mean that. The only way someone really cashes in on it is if a relative dies, and the money from their house is given to the family. I was replying to Cyclone's assumption that if you sold your house you'd have to live in a box.. although rising prices mean I'd get more cash when I downsized.. Link to comment Share on other sites More sharing options...
Cyclone Posted October 8, 2013 Share Posted October 8, 2013 Doesn't apply to the majority of people though. Which is why I only said that "most" people don't understand. Only those who can (and do) downsize or those who own >1 property benefit from increasing prices. Link to comment Share on other sites More sharing options...
Mecky Posted October 8, 2013 Share Posted October 8, 2013 because they are greedily fingering their lapels. I'm better than you etc Link to comment Share on other sites More sharing options...
Cyclone Posted October 8, 2013 Share Posted October 8, 2013 I was replying to Cyclone's assumption that if you sold your house you'd have to live in a box.. although rising prices mean I'd get more cash when I downsized.. I don't think you completed the statement you made though. People can use their home and sell it on later, although they will need to buy another one. Link to comment Share on other sites More sharing options...
truman Posted October 8, 2013 Share Posted October 8, 2013 I don't think you completed the statement you made though. People can use their home and sell it on later, although they will need to buy another one. Why? I could rent if I wanted...and have even more money in the bank...if prices rise I have more flexibility than if they fall... Link to comment Share on other sites More sharing options...
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