Property ladder and wealth / affordability . . .

[AleNod]

Australian housing wealth is meaningless, destructive and fundamentally changing our society | Alan Kohler

High-priced homes do not create wealth, Alan Kohler says, they redistribute it. Now financial success is largely a function of geography, not accomplishment

www.theguardian.com

It's an Australian article, but an interesting read on the situation.

Our daughter has managed to buy a house, our son won't leave home (he's got it too easy in my minority opinion, 'nuff said). But I think back to my parents buying a 3 bedroon semi-detached in the early 60's, ourselves managing to afford a house in very late 80's, and the struggle kids today have to get on to the property ladder and the muliplier-to-salary they are being asked to pay.

"Education and hard work are no longer the main determinants of how wealthy you are; now it comes down to where you live and what sort of house you inherit from your parents."

I don't know what the answer is tbh. But I've thought for some time, people saying with pride 'my house is now worth £Loads' is a pretty meaningless statement . . . What are you going to do with it ?

Thoughts / insights / comments ?

 

[Eddie Zedder]

The future according to the WEF - 'You will own nothing and be happy'.

 

[the Nefyn cat]

what sort of house you inherit from your parents

Glad I've not had to wait for that, I'm 67 and my mother still refuses to lie down, so no chance there.

 

[Pingu]

I've thought for some time, people saying with pride 'my house is now worth £Loads' is a pretty meaningless statement . . . What are you going to do with it ?

Unless you are planning to die, emigrate or downsize.

If you wish to upsize, you want the house prices to be as low as possible.

 

[KASPar]

A house is only worth what a buyer will pay for it.

The value is unencumbered ie without mortgage, lien or cost of servicing the debt to buy it. I used to work with people who constantly indebted themselves on houses claiming they were worth x, when there was no equity in them.

Houses are homes. If you wish to gamble using them as 'bets' you run the same risk as at the bookies.

The sooner you are unencumbered you are free. I paid off my home over 30 years ago, after 3 years with a mortgage, I was 33. My choice to forego the luxuries others saw as essential. Mortgage rates are cyclical, over my lifetime the amplitude has been low to high of 14%, frequency since house buying became a tool for the working man is 14 years. Ride the wave.