The context here is quite different; in other words, you got an apples vs oranges issue here. A single home owner does not expect to profit from that investment; the increase in value is more of an insurance than anything (mortgages are taken out to cover emergencies, or the increase in value provides the means to move to a new home, etc). So, again, the context is extremely different.
Besides, if the expected inflation in value were the issue, shouldn’t I expect increased wages to make up the difference? I.e. no, that would not contribute to making the housing market too expensive for the average person to find accessible.
nimpnin@sopuli.xyz 1 month ago
What are you talking about? People definitely buy homes as an investment so that they can sell it and retire.
forrgott@lemm.ee 1 month ago
That’s insurance. The “profit” goal is not to rent seek or enrich themselves. And in this market it’s a risky gamble, anyways.
If the so called profit is intended to be entirely consumed to take care of moving or retiring, it’s insurance to allow you to move or retire; it’s not profit you add to your income. It’s not even properly described as “profit” since it’s, by definition, unrealized gains.
These are not circumstances where you “cash out” and buy something fancy, or even pay your day to day bills. Context matters.