Why are rising house prices 'good'?

generally speaking rising prices are bad, inflation and we have the Bank of England raising interest rates. However it seems that housing inflation is good for us.Who really benefits from this since even the benificiaries of this rise need someplace to live?.

Why are rising house prices %26#039;good%26#039;?loan officer

Its only good if you are investing in property.

For those of us with only one house / home it%26#039;s all bad news.

The problem is that most people don%26#039;t see the harm caused when estate agents start inflating valuations in order to top up their commissions. Yes, the seller gets more but the buyer is ripped off, and if you are a seller you are normally buying somewhere else too!

Why are rising house prices %26#039;good%26#039;?

loan

Well house owners who sell at the top end of the p[rice scale when they retire and downsize to a less expensive area,property wise,or emigrate and buy a much cheaper place in Spain or wherever and get a new property and cash in the bank as well.|||I am no expert, increased housing prices mean an increase in the overall economy of that area. Which means that things are going well for that area and everyone%26#039;s benefitting.|||Who told you that????|||The people who benefit are mainly estate agents, and the banks / building societies who make profits from mortgage lending|||The only people who benefit are those who are downsizing and can bank some of the equity to help in their later years . Usually family have left home so a smaller house is all that is necessary , then gran children come along and they realise that perhaps some more space would be nice !!! The only others to benefit are those who inherit a property when a relative dies .... oh and of course there is the banks and building societies who make much more profit for the higher mortgages..|||It is only good for either people investing in property for profit, or people moving to a smaller or less expensive property, perhaps for their retirement.

The worse prospect for rising house prices is the revaluing of house prices for council tax purposes. The use value of houses haven%26#039;t gone up, the money value has, and it isn%26#039;t fair to up the council tax when there is no added benefit to the residents.

Inflation is always bad in my view, but due to the limited space in the UK for houses, their value will always go up, providing they are maintained in good condition.|||Good? That %26#039;s a good one! Rising prices cause inflation to rear its ugly head as property owners take some of the equity out and spend it on things they cannot afford. It also prevents young people from getting on the ladder. The prices need to keep pace with inflation but not race ahead as that causes distortion in the market.|||This is NOT a question of ethics (%26quot;Good%26quot; v %26quot;Bad%26quot;)

It%26#039;s Basic Economics.

There is a limited supply of Houses and rising demand.

Conclusion == prices go up.

There are 2 ways to reduce prices === one is to increase supply (for example, remove all planning constraints) ... the second is to reduce demand (for example, make it illegal for unmarried people to own houses )

Actually there is a 3rd way = eliminate the private ownership of property (eg. as in a Soviet style dictatorship :-) )|||Rising price are NOT good.

It%26#039;s called inflation.

Inflation is always welcomed at the beginning of the cycle and cursed at the end.

Inflation is caused by central banks printing too much money.

Rising prices are a SYMPTOM, not the real cause of inflation.

Rising prices are bad for everyone involved.

Example. My dad bought his first house in 1962.

He paid $16,000. That same house sold in 2005 for $245,000.

What%26#039;s the difference? Same house, same piece of land, same address.

The difference is the Ferderal Reserve has printed so much money the home costs more every year.

Here is the real problem with inflation.

My dad raised 3 kids and a wife on one salary. My mom was a stay at home mom and watched the kids.

Inflation today requires that not only does the mom have to work, but families are trying to figure out how to get the dog, and maybe the kids to earn a little money to help out.

Ben Bernanke will be testifying before congress this week. If you want to laugh your head off, watch it on C-Span.

He%26#039;ll say stupid things like %26quot;We%26#039;re concerned about inflation and are watching it closely%26quot;

Are you kidding me? They are creating inflation but treat it like some mysterious creature they have not quite figured out.

If you want a real education about inflation, go check out the %26quot;Financials Sense News Hour%26quot; (FSN) every Saturday at http://www.FinancialSense.com

Terry S.