I know I’m supposed to want it to keep going up as a wealth generator or whatever.
But like… I wouldn’t be able to afford the monthly payments if I bought my house right now and it’s scary. Also none of my friends are buying homes, none of them are even renting full places. Just like renting rooms.
So what are your feelings home owners of lemmy?
A house is a lot more than a hedge against inflation for many. Especially if you bought when rates were as low as 2.5% for folks. There was a solid decade of excellent interest rates that a lot of people got in on. Historically low tbh.
If you’re rocking 7%+ mortgage? Yeah it’s a different story.
A house is a home for many. For others, a house is an investment. Betting on the value of your house to increase is the same as betting on the devaluation of the dollar. A house holds its value but doesnt increase. A house degrades and cost money to keep in good, usable shape. The reason you can sell a house for more than you paid for it is the value of the dollar.
Hardly the case! The land goes up in value, the style of house (for instance, people made runs on doubles in my city for STR’s), and other factors absolutely increase the value of a house regardless if you do anything to it. Land changes value for no reason other than where it is simply becomes more valued even if nothing substantively changes about the land. See: Amazon HQ2 in DC for a very clear example of this. Real estate rocketed up at the news and has only gone up.
Indeed. But if what it’s a simple matter of spending less than what you earn to make a profit, like anything else. I’ve had to put tens of thousands into my home but I know for a fact i’d still make tens of thousands in profit selling it because the area has gone up in value and it’s a double, of which there are very few left. The actual money people are willing to spend for it is higher than when I bought it just a few years ago, and I’ve made no major overhauls/improvements to the place. I fix what breaks, I replace what needs replacing. I mean how do you think house flipping works? They spend less than the amount they will make with the changes.
That is one contributing factor, yes. But not the sole factor.