Before you read further here’s a huge disclaimer - this doesn’t factor in everything, this is intended as a though experiment painting in broad strokes and to ask some questions which seem to rarely get brought up when talking about home ownership.
Most people seem to buy property with roughly the following assumptions. For simplicity I’ve largely based these on Sydney since that’s where I’m based.
I’m also willing to say that the government wants housing to appreciate as an asset, and will do what they can to ensure this stays true. This assumes that many politicians own property and that it’s useful for it to be seen as a “safe haven” investment - as for whatever reason most people are scared of investing in index funds.