The two - level price limit for the Starter Homes - 250,000 outside London and 450,000 inside -
ignores house price inflation in other parts of the country.
Not exact matches
This transient view of
inflation ignores the fact that if wages / salaries didn't increase by 100 % over the 3 year timeframe in my example then people are permanently affected by the increase in
house prices (unless and until their wages catch up).
3) How do you adjust the
price or value of an item to compensate
inflation; eg: Say I have a
house I paid 1 million dollars 3 years ago (
ignore depreciation and other factors that can affect the asset's value), if
inflation was: Y1 = 10 %, Y2 = 11 % and Y3 = 12 %, what would the value of the
house be?
Many rich (er) people have lots of real - estate: Don't
ignore history,
house prices went up insanely in the nineties / early 2000s, people who bought multiple
houses before that (relatively cheap) are rich now, but it's almost impossible that will repeat itself (they still go up but match
inflation more closely).