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by mdda
4932 days ago
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Because everyone needs to live somewhere, if they don't own a house, they are hurt if house prices (and 'therefore' rents) rise. To avoid being affected by something external (like house price fluctuations), it makes sense to own a property (or invest in property-related stocks). But only enough to cover your needs. If you buy a too-big house, or several houses, you'll be in the situation of hoping for house prices rises - meaning that you'll benefit if prices rise - beyond the additional cost that you'll face in the current property markets. The surprising point of the article is that it is natural to assume that no property = no exposure. But that's not true in the case of housing. |
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-- suggests public policy should be to <decrease> housing prices. yest many government's seek to <increase> or "support" them. we should all ask why??