Our money is so broken that it pushes people into investing in property as their reserve asset.
Meanwhile this drives up prices of homes which we as younger generations are not able to afford anymore.
Discussion
Imoā¦ Home ownership is totally overrated and in todays world overly burdensome.
The ability to move freely with your capital and live anywhere is far more appealing. Couldnāt imagine anything worse than being tied to a 25/30 year mortgage which required a large % of my liquid capital.
Buying a property later in life is more logical when those down payments make up less than 5% of your liquid net-worth rather than 95%.
Agreed
I agree 100%
My personal opinion is also that friends who buy big homes with big mortgages and say itās an investment, is just bullshit.
If that house goes up in value means nothing because you probably wonāt move to a smaller house. Going up in lifestyle is way easier than coming down.
I rather own a small home, no big mortgage so I can invest more for the future. Having a less luxurious lifestyle to be able to be independent one day.
Low time preference only
Yeah totally agree. I see it with majority of my friends and family. A lot of it is social pressure and/or āthe thing you doā because parents etc. I can guarantee that if my friends understood what money is and how the system is programmed to debase forever they would second guess it. Most also donāt understand rates and leverage either which is crazy given thatās the basis of what a mortgage is. Home ownership with majority mortgage based debt is one of the greatest fiat scams that exists. Buying a house or apartment that you rent out is different but itās not an amazing investment either.
And donāt argue with them about it because they donāt want to understand it š
One for friends and family: https://inflationchart.com/home-in-m3
So we have to rent, and within the years big corporations lile Blackrock started to accumulate a large number of "first houses" to rent them, generating another constant increase in rent prices. So basically now people who lives in big cities, has to put in average half of their salary only for paying the rent. In London you can't find to rent a double rooms house under Ā£1600 at moment (less than 5 in all the city). Working as slaves only to pay a rent, without Downing anything.. "Are you happy?" Will they ask you.
So true
BTC is a lifeline for so-called "generation rent", a new way to build wealth without getting trapped in the rate race.
For those with the means, the overwhelming majority still follow in their parent's footsteps and hope to build wealth through their home - sad to see.
The birth rate in the UK is <1.6, and adjusted for the debasement of the Ā£, housing is flat at best (and down at worst) in real terms over the last decades.
