Comment by lotsofpulp
4 days ago
The well known adage of “buy the cheapest house you can afford in the most expensive neighborhood” is a sign that is what many think. The rat race to make sure your kids are in league with other parents of similar or higher stature is a huge contributor to home price dynamics.
Lol what? I've never heard that adage and it seems like really bad advice. Your neighbors aren't going to cut you a check at any point so what even is this.
It's about exposure to the way richer people think and access to the same community resources. Property taxes pay for schools. The best schools are in the richest communities.
I know this is true for the US. The vast majority of public school budgets are paid from local property taxes. This gives wealthy communities a significant advantage. Princeton, New Jersey is famous for its high property taxes and excellent public schools.
Are there any other countries that use a local-tax funding model for public schools? Most other nations that I know use a national funding model.
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Your local private school also isn't going to cut you a check, and I've yet to meet anyone with money that had a hard time sniffing out aspirational neighbors. Not buying it.
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If you buy a cheap house in a good neighbourhood, you spend as little as possible on the building, and are mostly buying land. You are presumably buying a house because you think the land will increase in value.
It's related to "it's all about who you know"
it’s to make sure your kids go to the best school possible, and are surrounded by as many future successful people as possible. considering schools are funded based on tax revenue, it’s not the worst idea
Tax revenue is spread across all schools, at least in California.
Poor schools actually get more government funding per student.
This is why good school districts California usually have ties to non-governmental chairty parents associations that parents contribute directly.
It is also a huge part of why California passed prop 13. After property taxes we're separated from funding local schools, homeowners were simply much less willing to pay for taxes that won't go to their kid or community.
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