Anon is mentally Retired

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Fire2xdxd@reddit

Can someone sufficiently schizoid enough translate what this is even supposed to mean, thanks.

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myqccountgotsca@reddit

everyone in this comment section fell for the ragebait

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meanwhile grandpa is on life support in urgent care, due to a stroke or whatever the fuck, and your family has leveraged THEIR ANCESTRAL HOME(the one you think he built or paid more than 10k for) to pay for his medical bills, which are in the millions.

And it's still not enough.

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Lythieus@reddit

Then the boomers sell the home to a corporation before moving into a retirement resort, so 100% of their wealth ends up in the hands of billionaires.

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diobreads@reddit

Houses shouldn't appreciate in value. They're just like any other commodity, values degrade with time and use. Especially the paper shacks americans live in.

Current house prices are high purely due to speculation. And speculative markets eventually face reality checks.

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Cormag778@reddit

Houses generally do depreciate in value, the land is what gains value. The houses go up because you generally own the land underneath the house and it gains value quicker than a house depreciates.

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Consistent-Throat130@reddit

That's not what I saw in Texas where my land's tax appraised a significant figure less than the home is.

At least if the government is to be believed, the house went up in value considerably.

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transistor555@reddit

So what you're saying is we need to poison the land for homes to get cheaper. Be right back. Got to go to pool supply store.

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EllisHibbert@reddit

Your bank accounts going be monitored for the next couple days.

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twotokers@reddit

Land is only like 20% of the total price though.

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browsk@reddit

Yeah if you live in tweakerville lol

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twotokers@reddit

Google Exists. It’s about 20% everywhere other than HCOL areas.

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skilliard7@reddit

Houses shouldn't appreciate in value. They're just like any other commodity, values degrade with time and use.

The land appreciates in value, the improvements on it(the house itself) depreciates in value unless maintained.

Current house prices are high purely due to speculation. And speculative markets eventually face reality checks.

No, it's due to a combination of scarcity and inelastic demand. Zoning laws restrict supply of housing, so there are less homes in many metro areas than people that want to live there, so the supply and demand meets equilibrium at a high price where only wealthier buyers can afford the limited supply of homes.

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Baron_Flatline@reddit

No, housing prices (in America and several other Western states) are high because of policy subsidizing demand rather than construction that has purposefully led to a housing shortage.

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lllGrapeApelll@reddit

Land has value. Building a home is also more expensive now than it used to be. So you buy land that has increased in value most likely because it's close to stuff people want to be close to as well as the building already exists and is useable as opposed to trying to build something.

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Discordchaosgod@reddit

I did the math the other day

based on purely comparative prices, my parent's house has appreciated more than 2% per year, adjusted for inflation, over the last 30 years

that is an insane rate of appreciation for a good that requires maintenance

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Smurtle1@reddit

That seems low, ngl. The value should double every ~15-20 years, with lots of people quoting every 10 years (but that’s a bit extreme.)

I am in no way advocating for the bullshit that is appreciating land, but your parents home is appreciating quite slowly.

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Discordchaosgod@reddit

oh, you misunderstand

they bought for 230k€

it now would sell for 1.2M€

but adjusting for inflation, it's "only" a 35% increase

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BwianR@reddit

It's still low, my parent's house is over 4x after inflation adjustment, 42 years later

Real estate not as bad in Europe I suppose

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Ok_Field_5701@reddit

high purely due to speculation

lol not even close to true

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Reading_username@reddit

Depends on market, tbh.

Some places that had huge growth during and post-covid, definitely are speculative markets (we saw this in Florida which is crashing a bit, as well as some metros in Texas).

Other places are high due to population booms and limited land (Bay area, SLC metro are both limited by terrain on either side and have limited building area that's swiftly running out). These will only continue to go up and won't have major crashes.

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Wity_4d@reddit

gif

Supply and command bubs

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dance_rattle_shake@reddit

Lol someone missed the supply and demand class in 5th grade. There are way more ppl in need of housing than there is housing in many of the most desirable places to live.

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CaloricDumbellIntake@reddit

Yes, houses do not appreciate in value because their quality increases (like a good wine would for example) but they increase because the demand increases quicker than supply.

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Smurtle1@reddit

And because it’s not the house that’s the most important but the location (I.E. the land) the house has little to do with it most of the time.

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CaloricDumbellIntake@reddit

That as well. Building a house is relatively cheap compared to buying the ground

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dance_rattle_shake@reddit

Yes, duh. You're agreeing with me.

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CaloricDumbellIntake@reddit

Yeah I am, I just wanted to elaborate a bit more on your point.

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ContributionMaximum9@reddit

how come if birth rate is declining? south korea has awful prices (even outside seoul) with abysmal birthrate, what do you base that on?

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Yeseylon@reddit

As someone else mentioned, speculation. House flippers, would-be slumlords, AirBnBers, and in some cases large corpos have all turned the housing market into a commodity.

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ContributionMaximum9@reddit

so.. not real supply and demand - airbnb and hedge funds hoarding homes is not why houses exist in the first place, there's not much 24 years old wanting to buy a home for airbnb and then live with their parents

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av123h@reddit

The house, I agree, can often require work or modifications. The land it’s built on, though, that’s where some of the expense is coming from. They’re not making more of it, at least not quickly and cheaply.

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