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Comment on Houses in my area increases 82% in just 4 years

You’re only making money if you downsize, move somewhere cheaper, or switch back to renting. If you move and all the other houses have gone up, then you just end up having to sink any gained equity into affording your new place. Rising prices really only help developers, realtors, and REIT’s.

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EndlessNightmare@reddthat.com ⁨1⁩ ⁨week⁩ ago
Housing price increases are actively harmful to those who want to upgrade, since it increases the incremental cost of upgrading.

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- mesamunefire@lemmy.world ⁨1⁩ ⁨week⁩ ago
  Taxes also increase.
  
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  - dan@upvote.au ⁨1⁩ ⁨week⁩ ago
    In California the property tax can only increase a maximum of 2% per year, so at least there’s that. (this law was put in place so that older people don’t get priced out of their house due to house values going up a lot)
    
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rauls4@lemm.ee ⁨1⁩ ⁨week⁩ ago
Exactly.

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socsa@piefed.social ⁨1⁩ ⁨week⁩ ago
Right but you then control the appreciation on a much larger asset. In terms of pure net worth and net present value, trading up is a huge gain even if it doesn't generate more short term liquidity.

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