House is a forced saving

[Broly46]

This is all wrong here.

House prices are not soaring, it is exactly the opposite. Interest rates are high , less people can afford a loan because it is expensive now. So less people buy houses , less demand = lower price.

Anyone should be careful about making debts now as interest rates are rising all over the world.

This thread is not about doing the right or wrong thing, but I would try to make it interesting and consider it’s a topic on house mainly, it seem to be a topic and never get old and constantly getting mentioned on economic. Many guy try to trash talk house, many guy try to dismiss house, yet they can’t get away with it. Not much I could debate but
“Perenna has been awarded a license to bring 50-years mortgages to the UK market.” This is exactly the bill that cause house price to soar, most of us couldn’t do nothing while the policy maker made the iron fist rule and set the market direction for the coming future.

Houses get old, houses go into maintenance and they depreciate in value over the time. I am pretty sure this is not the case as mentioned in the OP. 

They are only valued if they are some sort of big houses like mansions with its own property (land/garden/ponds/golf ground) I hope you have imagined already what kind of property I am talking about here.

Those are the properties which gets highly paid over the time. However, most of them get valued based on the “real estate land” and its location.

But usually that isn’t the bucket for everyone out here. So look for the properties right, not every of them would appreciate in value all the time.

I do think house would worth as much as the job market on the location and surrounding, often on a urban city where job market is robust the price would be so much higher too, but some of the jobs is moving away to rural area and bringing up the house price too although not as much as the urban area. Depreciation, I think it sound horrible and all, but look for phantom income, I won’t be able to advise much, it seem to be a work around.

Sometimes I feel very sad when people feel that success is all about having so much money to spend on luxury. Going broke and lacking the ability to provide basic needs is not a good experience and being in debt makes life very difficult and sometimes unbearable. But OP mentioned some notable inventors that were not rich because their main goal was not to make a profit. Most of them just had the intention to use their discoveries to bless humanity.

In my country the mortgage sector is paralytic, hence we don't have a government sector or many private firms that can satisfy the mortgage needs of my countrymen. Most houses in my country are built with personal savings.

Housing can be for personal use or business. Taking a loan to build your own house would be beneficial if the interest rate is low and it helps you to save money that would have been spent on rent. Also, the population of my country is growing rapidly and it has led to high demand for housing facilities. Taking a loan to build a commercial house might be a very profitable investment.

It’s fine to have goal and purpose in life, however survival is all that matter the most at the moment. Success by having a lot of money has always be the norms, girl only want to marry rich guy, guy only listen to the advice from filthy rich guy. You see we don’t want to be ended up another Newton Isaac who loss everything on south sea.

Although it is nice to believe we can achieve anything in life, when running out of money, that goal of yours have to shift, keep working on money is the ultimate purpose in life. Innovation, life changing decision, working on passion those are fading dream, money still has to come first not product or service come first. Also don’t mention about all the school that’s accessible by the poor, those are joke but not real school and often is a waste of money.

I often see those folks that are financially free to purchase their houses in cash so that the banks won't have the interest from paying that for so many years.
While I see the strategy of some rich people that they're leveraging it highly and they're maxing it out so that they can pay less for the mortgage but for longer years and it is their businesses that will pay for it.
They don't want to put out huge cash for it as they'll just have to allocate that on their business to make more money instead.

That’s exactly the how rich get richer, they’re playing real life Monopoly board game, by buying up every piece of real estate, it doesn’t matter where they come from, they looking to world wide real estate market, would you not want to “save yourselves” from the invasion?

At the moment it feels like we are hovering near record highs and a small correction to house prices should be coming in the next year or two. However it could vary wildly between countries, some countries might plateau, others might see a dip similar to the financial crisis where it took maybe 5 years to recover, but ultimately it seems buying a house is sound advice. What is the alternative? You will simply be paying off someone elses mortgage instead, so if you can get a mortgage and deposit together it seems very wise to make the leap into home ownership. However younger generations now seem further than ever from owning a house because they have risen so much in previous years and wage increases have not kept pace.

That’s a wild guess, btw a lot of guy would have remorse for not doing the “forced saving” much earlier, they would cry for house is unaffordable, but we don’t have the answer to why they refuse that, they have so much to loss, lower wage, higher inflation, save yourselves first, it’s no brainer to think of something else.

[Jody.Drummer]

Actually, in this case I probably won't look too far from the word home because apart from this it can be used as a business area but we must narrow our way of thinking first, if indeed we don't have the capital to make a house a business land, at least we must still have a house so that we can still take refuge and stay.

There is no need to insist on investing in a house because this is a primary need in my opinion and we need a place to take shelter and of course the house is one of the best places. If indeed we are able to make this a business then it is good but when indeed we still can't and are very lacking in terms of capital then still making this a primary need is enough.

[uneng]

Actually, in this case I probably won't look too far from the word home because apart from this it can be used as a business area but we must narrow our way of thinking first, if indeed we don't have the capital to make a house a business land, at least we must still have a house so that we can still take refuge and stay.

There is no need to insist on investing in a house because this is a primary need in my opinion and we need a place to take shelter and of course the house is one of the best places. If indeed we are able to make this a business then it is good but when indeed we still can't and are very lacking in terms of capital then still making this a primary need is enough.

Yes, a house, apartment or piece of land are a guarantee in life you have where to settle yourself despite the financial difficulties you may face during harsh times.

Imagine how frustrating it is for those who don't have a house, so they become homeless, live at hostels or have to share a room at friends or relatives' places. Privacy is a key factor in life which contributes for our self-esteem, and in order to achieve that a self owned place is a must as basic need.

However, to have more than one house for investment purposes must be very well thought if it really worth or not depending your local area, economy, criminality rates, supply and demand, maintenance costs, taxes...

[arallmuus]

It's a fucking nightmare of a time we're living in right now, and I think we're all pretty on edge about a lot of things. Take a deep breath and be grateful for bitcoin at least.

Isnt it always a bad time to live? I cant recall a single time that people were not having any economic situation throughout the history. I mean there's like always something that is bad with the world and yeah Im grateful that I know bitcoin pretty early but the average joe that probably struggling alot right now especially with those silly houses prices

[AmoreJaz]

It's a fucking nightmare of a time we're living in right now, and I think we're all pretty on edge about a lot of things. Take a deep breath and be grateful for bitcoin at least.

Isnt it always a bad time to live? I cant recall a single time that people were not having any economic situation throughout the history. I mean there's like always something that is bad with the world and yeah Im grateful that I know bitcoin pretty early but the average joe that probably struggling alot right now especially with those silly houses prices

that's what you called life. this is why a man lives all kinds of troubles in this life and learn how to face them. if you will not be strong facing this life, you won't survive. this is why it is called survival of the fittest. every era or generation has their own battles to tackle with. it is how the humans will learn how to encounter those battles.

[KingsDen]

I read here that someone actually supported the idea of buying land as a good investment but doesn't support that of buying a house as a good investment. I believe the profit and risk level of getting a land or buying a house is same. The value of a house is the value of the land + the structure on it. Anything that will affect the price of a house should first hit the land value. Both are of thr same jurisdiction.

My fear for such an investment is over pricing, which is often caused by the agents (middle men). You can buy an over priced house and discover that in years time, the value hasn't increased.

Same vain some rich buy rent house instead of buy it, I don't know why. I read somewhere it was written that Musk doesn't have a house in a city he lives. He lives instead in a garage and I didn't know why.

[Broly46]

Dude, we've all been lied to.  Some get angrier about it than others if and when they realize that fact.

I'm a poor historian of bitcoin and the development of mining, but comparing the inventor of the ASIC to Newton is stretching it harder than Mr. Fantastic.  As far as getting an education goes, I'd say most people who studied hard and studied a subject that didn't lead to some frivolous puff degree (like gender studies) probably found themselves in a competitive position as far as the job market when they graduated. 

One of the problems is that there are more people than ever going to university, and it's getting more expensive.  A degree just isn't as valuable as it once was--unless it's in something like nursing, pharmacy, engineering, and STEM fields.  As I mentioned, if you get a degree in history, political science, or any of the liberal arts offerings, what kind of career does that prepare you for?

And hey, don't get too discouraged.  It's a fucking nightmare of a time we're living in right now, and I think we're all pretty on edge about a lot of things.  Take a deep breath and be grateful for bitcoin at least.

We all have been lied to... not exactly tbh there isn’t anyone promise anything at the first place, and there is plenty sign to doubt about what is to expect from all the calling for greater good, but there it is, some guy would spectacularly fall victim as usual, which is his mistake occurred.

Nightmare, for any normal guy it is bad enough, for guy who has disabled it’s living hell, can’t imagine having to live with some limbs maimed or removed, or have diagnose with malfunctioning vital body part. When we said nightmare we are perceived it to it’s being perfectly healthy guy, it’s made more absurd when we completely ignore minority who is victim of defective by birth, due to contamination, chemical, mutation, violence, vaccination, pollution, sound or air, disease, virus, or socially engineered mutilation, politically or emotionally driven. May be dead is where they find peace.

The magnitude of the contribution to the STEM might not be comparable, but one can’t deny guy just goes broke in life, it is unthinkable! There isn’t many example who is relatable, of course Newton Isaac is much wealthier guy before going broke also he didn’t even have any loan, there is no bank provide loan to any commoner by the time.
Obviously we are having a very tough time, how bad is it, jobless, depression, crackhead, climate change, business closure, all sort of social problems come right together, it’s unable to describe in word, I dunno what suffering guy has to go through living in society today, but thing is unprecedentedly bad for me and thing around me. I also think we would have many many years of doom days ahead despite it has been three years I think? Never ending crisis?
I’m seeing online business, which is touted to be evergreen, is undergoing major downsize, it’s baffling as even a non existing market is not spared from getting haircut, also it was a growing business since dotcom 2000. Some notable one include online shopping, subscription service, social media...

Do I received countless scam calls and mails? Yes guy today are SAVAGE, they all approach me to talk MONEY, for unsuspecting people they would be quickly fall victim to scam and loss money, but this guy are everywhere, when they can’t reach you in person they would contact you via mail, via internet, via calls, via any means, it’s disturbing. Despite we are just looking to live a carefree life, but with these many bad actors lurking around doing everything to scam people, it’s just making everyone life full of unwanted baggage, make me wonder “you can’t beat the scammer, then you also become scammer yourselves” is the thing one has to do to live a life. But what and why? It’s horrible.

[stompix]

House price is soaring, but finance advisor telling me to debt maxxing on house loan 90% loan and 0~10% dp, and it’s fine.

This is all wrong here.

House prices are not soaring, it is exactly the opposite. Interest rates are high , less people can afford a loan because it is expensive now. So less people buy houses , less demand = lower price.
Anyone should be careful about making debts now as interest rates are rising all over the world.

That might be happening in Brazil (?, did I get it right?) but not in Europe.
The ECB is threatening us with lower housing prices because of interest rates, of slowing demand of that and this and prices have just jumped another 5% you here, and even worse in some other parts of Europe.
https://finbold.com/eu-rent-and-real-estate-prices-see-steady-increase-in-q2-2022-despite-looming-crisis/

Doing the average for a country is not showing that much growth but if you start looking only at capital cities the whole covid scare is over and people are again buying, slowly as there isn't that much to buy in the first place but they're going up, up and up. Plus, nobody will sell cheap apartments that were completed now with more expensive materials, they will just wait for a buyer, and with almost every larger city still attracting students and workers, they will find a customer at one point.
I opened a week ago a classified website to just check on the madness and saw a two-bedroom 50sqm flat in the same neighborhood at the same price as my old mortgage on my 3-room flat taken years ago, and when I thought things can't be that bad I stumbled upon a 7000E/mp in the city center and instantly closed the page as I realized the whole cheap houses stuff is just a dream.

Experience has shown that people don't buy houses to live there but they do that as investment for the future. They acquire it and put it on rent or lease it out and on the long run it will become something to rely on for financial support.

And where are they living while they rent the house they have bought? They rent another place?
I have not seen even once such a thing, I don't know a single guy who would rent his property while living in a rented apartment from somebody else.
Temporarily due to work maybe, possible, but never in the long run.

[DudeAtWork420]

Guy often tell me house is a force saving. By looking at the market today, full of scammer roaming around, and countless unsavoury characters and get rich quick scheme, jobless highly educated youth. I conclude buyhouse is not only a “forced saving” but also a “save yourselves”.

Having a big and luxurious house may bring you honor but it is not the best way of savings. House is actually not a assets if it's for you to use not for rent. It is a debt and you had to pay for its maintenance every month. Buy house for saving is the least best idea. Investing in something that's values is not constantly moving and that will get old and has to be maintenanced over time is not investment at all if its not generating income.

[Hydrogen]

We often heard about a lot of highly educated youth had no jobs, underemployed, which is very bad today and getting worse day by day. What they often failed to see is it has been norms in the past, do you not know every scientist is borderline poor and bloke

It may be true that those who contribute the most to society, receive the smallest reward.

Society does not necessarily approve of change or progress and has a tendency to oppose both. The prospect of having to abandon outhouses for indoor plumbing and the abacus for bitcoin miners can be frightening over the long term. On some level we fear the type of change names like Einstein or Newton might bring about. They carry the potential to shake up the world and change the way civilization functions forever.

While they may never become rich or powerful through their efforts. The way people live and think will change. The world and everything in it will be transformed. Should they be rewarded for this? Some will say yes, others will say no. Which could be the reason geniuses are seldom acknowledged during their own lifespans. People usually wait until they're dead and gone before acknowledging them. Perhaps as they breath a sigh of relief.

A major housing crash could be on the way. Being in a leveraged position if one occurs would be a good way to re enact the subprime mortgage crisis of 2008. Where many high risk real estate loans were traded with leverage in CDOs.

[dezoel]

Actually, in this case I probably won't look too far from the word home because apart from this it can be used as a business area but we must narrow our way of thinking first, if indeed we don't have the capital to make a house a business land, at least we must still have a house so that we can still take refuge and stay.

There is no need to insist on investing in a house because this is a primary need in my opinion and we need a place to take shelter and of course the house is one of the best places. If indeed we are able to make this a business then it is good but when indeed we still can't and are very lacking in terms of capital then still making this a primary need is enough.

Yes a shelter or a house is among the basic needs of a human however a house isn't easy to obtain or create other than the other basic necessities in life like medicine, food and clothes. Even a small house still costs a good amount of money so we can't always prioritize it. Many of us are still living on our parents house or we are renting someone's house if we don't want to rely on them because we are now adults and it may look weird.

A house isn't just a house that we can live on but it's also an investment. We can re-sell it later on and make more profits or like you said we can use it as a form of business. We can offer space for rent, build a mini shop, and so on.

[nara1892]

Why do even someone think like that house is a forced saving?
House is the most basic necessity and need in anyone's life ,like no one can think otherwise. Its a place of your shelter,living, where you spend your life and where your children lives and will live. It's a guarantee for your comfortable life rest of the things comes later on. Either it's a small house or a big house that's according to your affordability but it's a must thing.

Yes, if I was given a choice and one of them was a house, then I would choose the house I would choose. The needs of clothing, food, shelter are basic needs for life. I don't think it's coercion when it's a necessity. Clothing, food and shelter are something that must come first before anything that is hereinafter referred to as secondary and tertiary needs. Sometimes I also put aside secondary and tertiary needs if I think they are not too important for now. I'd better to save more especially we will face a recession in the near future. Yes, something that we don't really want to face, like it or not, will come.

[Cryptomiles1]

House prices are not soaring, it is exactly the opposite.

sorry to interfere in this matter in the part of the world where i came from, today house rent is the number one revenue generating business which house owners don't want to have considerations to tenants so buy a house in my city today would give you something you will always be happy of yourself to have, since the population is much there were no much space housing is something else. 

[Findingnemo]

Real estate is pretty good for investment as well as storage of value but to some extent it's good and honestly its a trap on most cases where people have to pay the mortgage for their entire lifetime just because they're seasoned by the community to own a house even if there is no need for it.

[zasad@]

I have a private house and an apartment. In the apartment, all problems with gas, water, heating, sewerage are eliminated by the communal organization.
In a private house, solve all the problems yourself or hire specialists. If you cannot do at least minor repairs yourself, then home maintenance will be expensive for you.
Why do I prefer an apartment? It is cheaper and in the place I need with good infrastructure more offers. A private house is located outside the city in a good green place, as a place to relax.

[darkangel11]

I have a private house and an apartment. In the apartment, all problems with gas, water, heating, sewerage are eliminated by the communal organization.
In a private house, solve all the problems yourself or hire specialists. If you cannot do at least minor repairs yourself, then home maintenance will be expensive for you.
Why do I prefer an apartment? It is cheaper and in the place I need with good infrastructure more offers. A private house is located outside the city in a good green place, as a place to relax.

I don't think it's a house vs apartment discussion, but since you took us here, none of these is better. It's like a discussion of a small city car vs 4x4 truck, both have their advantages. A woman who drives to work in traffic jams and needs to be able to park anywhere will choose a city car that saves her money and time. Someone who lives in the country and has to drive through rough terrain will choose a truck.

A house presents the same problems because on one hand you pay less for square meter, have a back yard to party, more privacy, but also houses are more expensive and require more maintenance. To each its own.

I feel like it's better to own real estate than not. Not only it goes up in value but also gives you a sense of security and attachment. It becomes important when you have children. You don't want them to move from one rented place to another all the time.

[wxa7115]

Real estate is pretty good for investment as well as storage of value but to some extent it's good and honestly its a trap on most cases where people have to pay the mortgage for their entire lifetime just because they're seasoned by the community to own a house even if there is no need for it.

Yes, a house can be a store of value but it can also be a way to be indebted for the rest of your life and then lose everything once the next big crisis comes, so people need to make sure they avoid the second scenario while trying their best to achieve the first one.

And one of the easiest ways to do this is by buying a house you can actually pay in less than a decade, if the house you are buying cannot be realistically paid in that time frame then you are exposing yourself to a massive risk as economic crises appear roughly each decade, now this can be problematic to actually do as for example at the place where I live houses have been growing in size despite the size of families going down, meaning you need to indebt yourself for a longer period of time just to get a place to live.

[Findingnemo]

Real estate is pretty good for investment as well as storage of value but to some extent it's good and honestly its a trap on most cases where people have to pay the mortgage for their entire lifetime just because they're seasoned by the community to own a house even if there is no need for it.

Yes, a house can be a store of value but it can also be a way to be indebted for the rest of your life and then lose everything once the next big crisis comes, so people need to make sure they avoid the second scenario while trying their best to achieve the first one.

And one of the easiest ways to do this is by buying a house you can actually pay in less than a decade, if the house you are buying cannot be realistically paid in that time frame then you are exposing yourself to a massive risk as economic crises appear roughly each decade, now this can be problematic to actually do as for example at the place where I live houses have been growing in size despite the size of families going down, meaning you need to indebt yourself for a longer period of time just to get a place to live.

I am going the other way just buy the house only if you have the complete money to buy them, no loan so no pressure. Most of the people who succeeded with real estate followed this rule but instead of buying one house they will go for 5 house and 20% as down payment then lay remaining with the rents coming from the house but I can assure these people are not applying this model for their first property.

[xSkylarx]

I have a private house and an apartment. In the apartment, all problems with gas, water, heating, sewerage are eliminated by the communal organization.
In a private house, solve all the problems yourself or hire specialists. If you cannot do at least minor repairs yourself, then home maintenance will be expensive for you.
Why do I prefer an apartment? It is cheaper and in the place I need with good infrastructure more offers. A private house is located outside the city in a good green place, as a place to relax.

You have a point, and also, you are in the middle of the city with all are accessible, but with regards to the problems in your apartments is that if the communal organization takes time to send tradespeople to fix the issues, this is the most common issues, but still, overall apartment is my preferred too if only you have enough money to own it and also I think it is not that spacious, unlike the private house.

I dreamed of having apartments, but the cost here in our country is costly, unlike private houses in provinces (green places with mountains and a lot of trees). Because there is a lot of demand for it, I buy a lot and build a house on it as it is way cheaper.

[zasad@]

I have a private house and an apartment. In the apartment, all problems with gas, water, heating, sewerage are eliminated by the communal organization.
In a private house, solve all the problems yourself or hire specialists. If you cannot do at least minor repairs yourself, then home maintenance will be expensive for you.
Why do I prefer an apartment? It is cheaper and in the place I need with good infrastructure more offers. A private house is located outside the city in a good green place, as a place to relax.

You have a point, and also, you are in the middle of the city with all are accessible, but with regards to the problems in your apartments is that if the communal organization takes time to send tradespeople to fix the issues, this is the most common issues, but still, overall apartment is my preferred too if only you have enough money to own it and also I think it is not that spacious, unlike the private house.

I dreamed of having apartments, but the cost here in our country is costly, unlike private houses in provinces (green places with mountains and a lot of trees). Because there is a lot of demand for it, I buy a lot and build a house on it as it is way cheaper.

In the provinces, the level of development is always worse. There are no good schools, no hospitals, no good high-paying jobs, and so on.
If you are young and you need a career, then you do not need a house. You are ready to move at any time for a better job.
Some of my acquaintances who work in the IT sector do not have houses and apartments. They live in different countries and constantly travel, renting real estate.
I see no point in buying real estate if you have not decided where you will live.

I have a private house and an apartment. In the apartment, all problems with gas, water, heating, sewerage are eliminated by the communal organization.
In a private house, solve all the problems yourself or hire specialists. If you cannot do at least minor repairs yourself, then home maintenance will be expensive for you.
Why do I prefer an apartment? It is cheaper and in the place I need with good infrastructure more offers. A private house is located outside the city in a good green place, as a place to relax.

I don't think it's a house vs apartment discussion, but since you took us here, none of these is better. It's like a discussion of a small city car vs 4x4 truck, both have their advantages. A woman who drives to work in traffic jams and needs to be able to park anywhere will choose a city car that saves her money and time. Someone who lives in the country and has to drive through rough terrain will choose a truck.

A house presents the same problems because on one hand you pay less for square meter, have a back yard to party, more privacy, but also houses are more expensive and require more maintenance. To each its own.

I feel like it's better to own real estate than not. Not only it goes up in value but also gives you a sense of security and attachment. It becomes important when you have children. You don't want them to move from one rented place to another all the time.

I agree that utility bills in a private house are much less than in an apartment, but maintaining the house is still more expensive in the end.