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Guest Charlie The Tramp

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Guest Charlie The Tramp
Gadfly Financial Mail

Good news for grasping youngsters who fear their parents are about to cash in the family home and fritter away the inheritance.

It seems the old folk`s caveman genes will be urging them to hang on to the house until they die.

A new paper from academic Steffen Huck at University College London probes what has until now been one of the greatest mysteries in economics-the `endowment effect`This describes why people`s attachment to possessions tends greatly to exceed their market value. The Royal Economic Society, which is publishing the paper by Huck and collaborators Georg Kirchsteiger and Jorg Oechssler, says: `People wonder why few elderly homeowners take out equity release plans to boost their income, or capitals on the booming housing market by selling their homes and moving to a more convenient flat.`

Huck and Co have cracked it, apparently. It all goes back to our days in the hunter-gatherer environment. A hunter who wanteda balanced diet would have to swap meat for berries, for example, but would have an inflated sense of value of what he owned-meat.

The consequences: if you like something, then you will think it is worth a lot and you will want a lot in return.

That`s why, the paper says, `emotional attachment to some of our possessions might actually be hard-wired in our brains`.

Just what forward planning sons and daughters wanted to hear.

Well us babyboomers are not all bad. BTW I`m just the messenger. :P:D

Edited by Charlie The Tramp

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Well us babyboomers are not all bad. BTW I`m just the messenger. :P:D

:D

To be honest old people get past moving in my opinion. Take the Mother and Father-in-Law 79 and 84 three living in a three story rambling victorian terrace. Will they down size or even go into long term rental with no maintenance, and enjoy what little time they have left by spoiling themselves? Will they buggery, we even offered to extend our house to give them their own two beds and their own livingroom, nope. I'm sure it's this Brit hang up with having their own bricks and mortar.

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My dad has been looking at downsizing but he's got three sheds and a huge garage full of stuff and to be honest I think their house is peaceful enough for him and he'd go mad living with neighbours all around him.

Tesco deliver to them so why should they worry about being too old to drive to the shops?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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