[quote=FlyerInHi][quote=Jazzman]That may depend on your definition, but I don’t really want to get drawn into comparisons, as it only ruffles feathers. [/quote]
I think it’s fun and interesting to compare and discuss things. Why do people get ruffled?
Mostly people need to be where they can make a living. Then they want to be where friends and family are.
There’s also a herd mentality where if everyone wants to be in small apartment in London, then prices go through the roof. Supply and demand.
Aside from market based values, I do believe there is certain intrinsic value to real estate. A stone manor house in Dordogne is definitely worth some good money, especially given that it probably could not be built of the same quality today and is situated in a region that has sustained a high quality of life for centuries.
The cultural value is the “soft” part. An American probably wouldn’t relate much to the French lifestyle. It takes a certain personality to relocate to a foreign country, learn the language, culture and make friends. Plus there’s a huge difference between living the life of a retired expatriate vs. that of an immigrant.
Anyway, best wishes to you. Once you settle in Dordogne, you should have an extended house warming period. Any piggington is welcomed to drop by, at his own travel expense, for afternoon tea.[/quote]
There is definitely a predilection for debt in the Anglo sphere. The countries with the largest levels of personal debt are the UK, Canada, and the US in that order. It’s no coincidence that debt and bubbles go hand in hand. It has a very distorting effect on markets, and seems to be well adapted to both corporate and political short termism. As an investor, I want appreciation, but I also want to be able to enter and exit markets without having to sit out large cycles. There is intrinsic value, and there is supply and demand, but housing has been highjacked and too much emphasis put on the importance of its role in the economy. For governments, a robust housing market is good because it fulfills the social requirement of increased home ownership (the American Dream), increased personal wealth, and the economic spin off, growth. Corporations just think in terms of profit, and since manufacturing has been in decline, housing and financial markets are the new economic drivers. They haven’t found a sure footing, and bubbles seem to a permanent fixture of the landscape. You can argue tech bubbles produce some good. Out of all the businesses that fall by the wayside, a few great companies emerge. But do great Mom and Pop home owners emerge from housing bubbles?
