Adults often worry about things like the cost of living and house prices. John has just bought his first home, by which we mean that he has saved up at least 5% of the price and has borrowed the rest as a mortgage. He hopes that he will be able to trade up to a larger house in the same area in a few years time. He hopes and expects that the larger house will always cost 50% more than the house he has just bought.
Assuming that house prices rise faster than the general level of inflation, is it easier or harder to trade up in the future?
by Leslie Green