> Some people say home prices rise because of “sweat equity”, i.e., the work homeowners do improving the house.
> With all due respect, this is a crock of shit.
Don't agree. Well, I'm from the UK; authorities are introducing more and more regulations requiring significant improvement in the housing stock. These kick in when you let the place or sell up; they are to do with insulation, damp and mould, fuel efficiency and so on. The authorities don't regulate granite counter-tops.
There is a lot of old housing stock in the UK. I think that in a lot of the USA, it's common to knock down the house you bought and build a new one; that's not common here, although it happens. There are good things about old houses; if it's stood for 120 years, it'll probably manage another hundred.
I know that's not why house prices rise; they rise because of increasing demand against a limited supply. But be fair; home improvement isn't all about paint, putting up shelves, or redesigning the kitchen. A lot of HI projects result in an objectively better house.
> I think that in a lot of the USA, it's common to knock down the house you bought and build a new one.
Maybe in specific places (like Detroit), but generally, no. Most new houses are built on empty lots that never had a structure on them. Though I've heard that cheap McMansions built 20-30 years ago are deteriorating alarmingly fast, so demolition might be more common in the near future.
Don't agree. Well, I'm from the UK; authorities are introducing more and more regulations requiring significant improvement in the housing stock. These kick in when you let the place or sell up; they are to do with insulation, damp and mould, fuel efficiency and so on. The authorities don't regulate granite counter-tops.
There is a lot of old housing stock in the UK. I think that in a lot of the USA, it's common to knock down the house you bought and build a new one; that's not common here, although it happens. There are good things about old houses; if it's stood for 120 years, it'll probably manage another hundred.
I know that's not why house prices rise; they rise because of increasing demand against a limited supply. But be fair; home improvement isn't all about paint, putting up shelves, or redesigning the kitchen. A lot of HI projects result in an objectively better house.