New thread: house prices

[Clippy]

There's a big new development just near my house, and they've just put up "assisted living" signs. Yes it's retirement flats.

I don't know what that says about the house market.

It says more about the local demographic, and maybe the population as a whole.

The number of old people is rising as we are living longer - great, another 30 years of this board to look forward to!

[timh]

Just imagine how cantankerous some people here will have become in 30 years!

[hugebrain]

It's one of those maths things

T

OK, how much do they pay in rent? If it is more than the mortgage repayments, why do they not just buy the house? If it is less than the mortgage repayments, why is the landlord holding on to the property?

For it to be profitable, the rent does not have to be more than the cost of the mortgage payments. The rent just has to cover the upkeep expenses and the difference between the mortgage payment and the risk-free rate of return on the mortgage amount.

The profit comes from the amount borrowed being depreciated by inflation.