by Chubbychaser84 on August 6th, 2009

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Why do so many powerful people want house prices to rise? It just means less people can afford to buy so investors buy the properties and rent them out instead, so why is suggesting house prices may rise good news? Have I missed something?

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by Anonymous on August 6th, 2009
It's more of a sign of economic improvement rather than a love for expensive homes. Houses are cheap now but no one can get a loan to buy one. If credit frees up more people can and will by home, which will increase the price due to the demand.

I just wish they made more affordable homes in nice areas. No one really builds small starter homes anymore. $30000 back in the day are now demanding $100000 now (or were).

If you buy a $30000 home now you have to live in the hood or the boonies with little economic opportunity for growth.

I wanted to eventually get house before I was 30 but the economy pissed on that dream after drinking a 40oz.
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by Im Alec has abandoned this account on August 6th, 2009
House price rises are good for all house owners. Which includes the large majority of rich and powerful, or even moderately rich and a little influential, people.
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- Thank you. Do you think it has any benefit to stimulating the economy because some say it does, but really I remember when houses in my area were cheap and they shot up in price when I was about 18 and things did not seem to get any better then. Infact the prices of other things like beer just shot up as well :P
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  by Chubbychaser84 on August 6th, 2009
- High house prices stimulate the economy in the short term because house owners feel richer and spend more, sometimes borrowing against the house to spend. But it is a short term, bubble, stimulus, because it doesn't represent any real value added to society, unlike money earned by making things or providing services. It has to be earned back, either by paying off the mortgage, or taking money off first-time-buyers and those moving up the ladder, both of which take cash out of the economy. Which is a good slice of the reason for the current recession: the bubble burst.
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  by Im Alec has abandoned this account on August 6th, 2009
- Thank you. I very good answer. I can only give you 6 points but I would give you more if I could. You explain it well because I understand everything you say and you make it very relevant to the current situation.
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You're reading Why do so many powerful people want house prices to rise? It just means less people can afford to buy so investors buy the properties and rent them out instead, so why is suggesting house prices may rise good news? Have I missed something?

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Why do so many powerful people want house prices to rise? It just means less people can afford to buy so investors buy the properties and rent them out instead, so why is suggesting house prices may rise good news? Have I missed something?

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Why do so many powerful people want house prices to rise? It just means less people can afford to buy so investors buy the properties and rent them out instead, so why is suggesting house prices may rise good news? Have I missed something?

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