With all due respect, you’re the one struggling with the basic numbers. What BG said in this post is true and applies to a lot of people. You buy your house at some point, and then you are locked into the prices of that time even if your house goes up in value. You and/or your wife continue to get raises etc. and you build up your finances, all the while paying down the principle on your mortgage. I think you missed the part where BG mentioned people get raises over time and other various sources to boost income. You also probably missed the fact that, once you buy a house you are locked into the market and it’s a hedge against inflation. This isn’t rocket science and millions of people everywhere grasp the concept.
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Originally Posted by milomilo
And as I implied, you appear to have a problem with basic numeracy. Yes, peoples income increases with age, but that just means they will only be be able to maintain the same buying power rather than increasing it with increasing income if average house prices increase faster than average wage growth. And more importantly, it means first time buyers are screwed.
But sure, you had 'smarts' (lol) because you happened to enter the housing market at a time when house price to income multiples were lower than they are today, well done. You and Northern can continue your circle jerk if it makes you feel better.
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