Subj : Re: New to this
To   : BORAXMAN
From : Dumas Walker
Date : Sat Apr 19 2025 10:10 am

> You are starting behind others, because you are starting with no assets, and
> having to save up for a deposit.  The price of the house goes up as fast as
o
> can save for a deposit.  However, those who have houses, as investments, are
> seeing their investments increase in value, and can use that leverage to
utbi
> the new home buyer at auctions (which happens a lot).  The investor can then
> rent out the house.

> If house prices rise faster than wages, then, mathematically speaking, they
r
> becoming more and more unaffordable.

Yes.  The last time that happened, we eventually had a housing crisis that
set off a recession.  In that event, the housing prices rose well above
what the houses were worth.  There was an eventual correct (at least in my
area) and house prices fell back closer to their actual worth.

I have not shopped around lately, so I don't know if the prices have
overshot worth again.

> True.  But you need plumbers, electricians, floor workers, forklift driver,
> truckers, sanitary workers, window cleaners, electricians and the plethora of
> jobs which do not require a college or university degree.  Also include
> farmers, retailers, shop workers, etc, etc.

Plumbers need at least a certification and, here, make good money.
Electricians also need a certification and may attend trade school.  They
also make good money.  Both may very well make more than someone with a
university degree and an office job.

> The economy has to be viable for these people as well. We require them too.

Agreed.  Part of what happens, though, is out of the hands of politicians
and is more about neighbors.  Here, you can find an affordable place but,
chances are if the neighborhood is not already run down it soon will be as
the area will be more likely to attract neighbors (and landlords) who don't
care to keep their properties up.

When I bought my first house, the neighborhood was a nice one with smaller,
affordable homes.  By the time I moved out 12 years later, my street still
seemed mostly nice, but the one behind it started to have places that were
not so well kept, and there were a couple of drug dealers who'd moved in.

The neighborhood I am in now has a slighly different problem.  There are a
lot of pensioners who live here and own their homes.  If they have kids,
chances are they have at least one that is a deadbeat who hangs around waiting
for them to kick off in hopes that they will wind up with the house.  It is
still mostly nice, but for how long I don't know.

For whatever reason, the builders around here started mostly focusing on
housing developments where the houses start off in the mid-6 digit range,
which is not affordable, and probably barely have a yard.  They don't seem to
be building new "starter homes."  Apartments and condos, OTOH, they build
those, too.


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