Saturday, 2 December 2017

Don't be fooled by the 'wealth effect' of a rising house value

OPINION: In spite of the slowdown, New Zealand house prices are amongst the highest in the world.

In fact, in the latest house-price indicator from The Economist, New Zealand house prices are second highest (behind Canada).

This is nothing to be proud of and does nothing to make us wealthy. Although home owners may feel wealthy (and spend accordingly) only a few people take advantage of the high values and free up some cash by down-sizing.

There are also a few speculators who make the right call and do well, but most homeowners are really no better off.

from
http://www.stuff.co.nz/business/money/99373238/Don-t-be-fooled-by-the-wealth-effect-of-a-rising-house-value

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