CariadAgain
"House price inflation" though doesnt tend to help those who've had that happen on their house imo.
If I sold my house now - I should get about twice as much as I paid for it in 2013. Question 1 - how much of that would come from my time and my money I've spent renovating what was a tatty old-fashioned little dump and how much from house price inflation? I'd need to know that in order to take back my money I've spent on it so to say. I do know the vast majority of the price difference would come from my money I've spent on it and not a lot at all from inflation. £145,000 plus, I think, around £90,000 spent on it would give me some "inflation" money - but not much.
Question 2 - that house price inflation is no good to me - as I'd only have to pay a similar amount again to get a similar house in similar location. So I wouldnt benefit one bit from it.
The only benefit from my house price inflation is what I will leave behind me will be bigger in real terms for what I've stated is to inherit what I've got (in my case - that's a charity then).
So one way or another I'm not due myself for any of the benefit from that ever. If I was leaving it to relatives (which I'm not - as we can gather) they'd have to pay out an equivalent amount for any place they bought.
So - not a "vested interest" thing at all - just "Where would I (and many others) ever get any benefit from that?"
I've no idea just how many wealthy pensioners there are around - as I don't think I know any personally. Not to dispute there will be some - but I don't know how many of us know any in fact....
Inflation can help existing mortgage holders by reducing the real burden of their debt, it can also make homeownership more expensive for new buyers, especially if house prices rise faster than wages.
