It’s a rather abstract view of making money. Other houses also go up in value. You only make money from the difference between how much houses in your area are going up, and how much houses in the area you want to move to are going up. And that difference may well be negative.
The alternate is not owning the house and instead paying rent, which means your rent would have to be far lower than the appreciating asset (house) and the cost of servicing the debt (interest part of the mortgage)
That's certainly not the case in the UK. I'd be surprised if it were in the US
You can take out a loan on the house with the house as collateral. That's a tactic wealthy people use with their stocks. Also having a home equity loan is a good padding for rainy days.
It goes up in value. Also interests rates decreasing means more immediate money in lower living costs.
It’s a rather abstract view of making money. Other houses also go up in value. You only make money from the difference between how much houses in your area are going up, and how much houses in the area you want to move to are going up. And that difference may well be negative.
The alternate is not owning the house and instead paying rent, which means your rent would have to be far lower than the appreciating asset (house) and the cost of servicing the debt (interest part of the mortgage)
That's certainly not the case in the UK. I'd be surprised if it were in the US
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If you live in a major metro area it is the opposite: the price of where you want to live to escape the rat race gets relatively cheaper
A lot of people are doing a cash our refinance so they can capture the gains from their house value.
I don't recommend it, but many people do.
You can't pay for groceries with those unrealized gains. You'd have to sell your house. Wait, where will you live?
You can take out a loan on the house with the house as collateral. That's a tactic wealthy people use with their stocks. Also having a home equity loan is a good padding for rainy days.
True but you can borrow against the house to invest, for example
* by ensuring that others pay more in property taxes
* by ensuring that others cannot build, increasing value of your investment
* by leveraging the deduction for mortgage interest
The system is working as designed.
Buy a house, live in it, sell it for more than you bought it for