House is a forced saving

[Inwestour]

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.

I read about real estate manipulations like this in Kiyosaki's books, but it doesn't work the same for all countries, there are many nuances to consider. In general, if there is money and desire for this, then it will generate income, but it will also take a lot of time, so you will need to look for someone to rent this housing, they will call you if something breaks there, it's all described in Kiyosaki's books, it's not that easy.

[zasad@]

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.

I read about real estate manipulations like this in Kiyosaki's books, but it doesn't work the same for all countries, there are many nuances to consider. In general, if there is money and desire for this, then it will generate income, but it will also take a lot of time, so you will need to look for someone to rent this housing, they will call you if something breaks there, it's all described in Kiyosaki's books, it's not that easy.

I'm thinking of renting out property beneficial in tourist countries where there is a very high demand.
In other countries, this could be a hostel that rents out sleeping quarters for workers, or a very expensive property for wealthy clients who are not afraid of expensive rent.

[Frankolala]

Getting a house loan is not a good advice, especially when you are not using it for business it might be challenging to middle and lower class people to pay up. If you can save money in which you will use to build your house, it means you have really saved guarantee your children shelter after you pass on. Those that are getting house loans so that they can be proud of having a house are proud debtors.

Shelter is a basic need of life, if you own a house you can i  borrow money from any business firm or bank using your house as a collateral. A man own a house and got broke, luckily for him one day he met someone that gave him a contract of $10M. He didn't know where to go to but when to the bank and used his house as a collateral, executed the contract and paid back the money to the bank with their interest.

[kryptqnick]

The op seems to be saying that students don't usually realize that scientists aren't and weren't rich, but I think it depends on a country. In my country, everyone knows from childhood that going down the academic road means having financial struggles or, under good circumstances, just affording a middle-class life (unless you come from a family that has wealth, and then you don't need to earn your money by doing research). So people go for it because they are really interested and willing to do what they feel is important instead of focusing on being rich but doing something they aren't personally invested in.
As for housing, many are forces to rent and/or rely on institution-provided accommodation, of course. But the mortgage deals and their affordability also vary a lot from country to country.

[Findingnemo]

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.

I read about real estate manipulations like this in Kiyosaki's books, but it doesn't work the same for all countries, there are many nuances to consider. In general, if there is money and desire for this, then it will generate income, but it will also take a lot of time, so you will need to look for someone to rent this housing, they will call you if something breaks there, it's all described in Kiyosaki's books, it's not that easy.

Ofcourse nothing is going to happen overnight, it will take decades or few generations to change our lifestyle when we go with the traditional investment methods so called safe investments. The real problem with rich dad and poor dad book is the examples given will not work for every country in some countries the rent may equal to the mortgage and in some not even the half so we have to plan accordingly so its just an idea and we have to convert it to something which works for us.

[justdimin]

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.

The trouble of "fixing the problems in the house" is a problem of first world, because in places like where I live, those things are cheap because man hour spent on things is cheap, labour is cheap, you pay someone 10 bucks to solve it and it's done. Private houses are more expensive though because land is expensive, meaning if you could get apartment instead it would be cheaper, it's smaller to live in some 800 square foot place instead of 3000, but it would be cheaper too and people can only afford that.

Worst is when you get a place like that both outside of the city and still small because you can only afford that, which is where I live, it’s both far away from everywhere, middle of nowhere, but it’s also a tiny place, with 31 other people in the same apartment, we each have our own houses in it of course, but it's 600 square foot, so very small.

[Tallupooh]

Home is a place where all humans live. If there is no home then, humans will not know where to live. some people who do not have a home, life is very concerned. they lived under the bridge, and always dreamed of a place to live for them.

Therefore, the house is the main priority in this life.

[bestcoins1]

Home is a place where all humans live. If there is no home then, humans will not know where to live. some people who do not have a home, life is very concerned. they lived under the bridge, and always dreamed of a place to live for them.

Therefore, the house is the main priority in this life.

What you say is not wrong at all, but there are also people who do not have their own house, but do not live under the bridge as you say. Because those who don't have a house can still rent a house to serve as a decent place to live and continue to work so that one day they can build their own house or by buying it.

So what is concerning is that they do not know where to work and what to do to survive and also to be able to buy a house so they choose a bridge as a place to live. And that obviously won't be good for life because as you said that the house is the main priority in this life, so that no matter what the conditions are, everyone should try to be able to have a house that is livable.

[odunybiz]

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.

House price may be soaring depending on the country.Although almost all country is suffering from inflation but at a very different rate. Here in Nigeria, house price is soaring as all commodity in building a house is highly expensive. Shelter us a very essential thing in humans' life. So I don't believe in less demand when it comes to housing.

[Ultegra134]

Real estate is a much more versatile investment. You can rent it, flip properties for profit, or live in it in order to avoid paying rent. I find paying rent a complete waste of money; you're spending a huge portion of your salary to live in someone else's house with almost no control over it. Since I moved out for university 6 years ago, I've spent more than €20.000 on rent. I could have taken a loan of €50–60.000 and bought a small apartment for myself. When it won't be needed anymore, I could either put it up for sale or rent it for passive monthly income.

[KingsDen]

Real estate is a much more versatile investment. You can rent it, flip properties for profit, or live in it in order to avoid paying rent. I find paying rent a complete waste of money; you're spending a huge portion of your salary to live in someone else's house with almost no control over it. Since I moved out for university 6 years ago, I've spent more than €20.000 on rent. I could have taken a loan of €50–60.000 and bought a small apartment for myself. When it won't be needed anymore, I could either put it up for sale or rent it for passive monthly income.

You made a very good sense in your post, but there are people who has much money but they tell you that building a house is a waste of resources, that you can rent a house and invest your money meant for building a house. In 1 year time, you will double the money that would have been stocked in a building.
Some says housing and land is over priced.
You haven't heard soany different theories that will change your decision. But they are also subjective to where the persons live and how things are operated there.

[adaseb]

If it’s a house you plan on living for rest of your life then it shouldn’t matter what it’s worth. In fact it’s better if it’s worth less so there are less property taxes.

Many people in certain cities own million dollar houses, however are they rich? No. They sell and what then. They still need a place to live. So it’s not speculation for every home owner unlike the investors.

[mindrust]

I suggest you to wait a bit more before buying a house right away.

You know you won't keep waiting for the economy to get better before you start building a house if you have the money. Taking into cognizance that inflation keep increasing yearly because the cost of building materials now will not be same in next five years. At least the present economic situation has proved this that past inflation and costs are lower than what they are now. A stitch in time saves nine as it is a popular saying.

The costs will rise but the buyers will also run out of money because food, water and other daily crap will also get more expensive.

When people run out of money, no matter what the cost of building a house is, the existing house prices will drop.

Obviously, it makes a huge difference if the prices drop by 50% after going up by 300%. That’s where I am not sure what’s going to happen because I don’t know when will people run out of money.

[Poker Player]

The reason people say that owning a home is forced saving is because most people don't save at all.  Paying down the principle on a loan while maintaining the value of the asset like real estate does, builds equity, which for a lot of people is their only form of wealth. 

I think this hits the nail on the head. Unless people foresee a lot of mobility for work or other reasons, I recommend everyone to buy a house, to the extent of their possibilities, without going into excessive debt.

A paid off house or a good equity in it, just with an emergency fund of between 3 and 6 months of expenses and regular investment in the stock market in mutual funds and/or pension plans give a financial peace of mind that is worth experiencing.

[ethereumhunter]

At least, if we have the house we bought, we can go back to that house and don't have to pay daily or monthly fees, even though we still pay taxes that the government has set. And usually, people who want to buy a house borrow money from the bank and are required to pay the loan within a certain period.

But there may be some mistakes made by people because they sometimes borrow too much money so that when there is a problem with their income, they are confused about how to solve it. And they were forced to sell their house just to pay back the loan money.

[uswa56]

At least, if we have the house we bought, we can go back to that house and don't have to pay daily or monthly fees, even though we still pay taxes that the government has set. And usually, people who want to buy a house borrow money from the bank and are required to pay the loan within a certain period.

But there may be some mistakes made by people because they sometimes borrow too much money so that when there is a problem with their income, they are confused about how to solve it. And they were forced to sell their house just to pay back the loan money.

this happens if there is a lack of calculation with the loan that he did so that it would be difficult for yourself in the future.

but I personally have the opinion that the house is everything for a person, it is the most important thing in this life and I have the opinion that everyone should have the most comfortable house for himself in the present or the future, regardless of the finances he has, the house What must be there does not have to be luxurious but sufficient with existing capabilities.

[xSkylarx]

If it’s a house you plan on living for rest of your life then it shouldn’t matter what it’s worth. In fact it’s better if it’s worth less so there are less property taxes.

Many people in certain cities own million dollar houses, however are they rich? No. They sell and what then. They still need a place to live. So it’s not speculation for every home owner unlike the investors.

I think it's their business? buy and sell houses. They are not rich because they own a house; they are just earning some profit to make a living. Also, we couldn't say that an investor is rich just because they have enough money to invest; we all have our own hustles; let's just respect each other as they are just making a living. You can see a lot of things associated with rich people, such as premium cars, very expensive clothes, etc.

[Reid]

Is it really the house or the land? IMO, it's the land that increases in price because we are getting populated. Then, interest rates are also going higher if you are trying to pay it at max length. 20 - 25 years.
I bought a house and lot, and I can see how much it is (thanks to my new neighbor) after 5 years of paying it. The price was higher with lesser measurement unlike how cheap it was 5 years ago. Not cheap in a way, let's say about more or less 30 percent.
I think that's how much the demand for real estate now.

[Broly46]

You made a very good sense in your post, but there are people who has much money but they tell you that building a house is a waste of resources, that you can rent a house and invest your money meant for building a house. In 1 year time, you will double the money that would have been stocked in a building.
Some says housing and land is over priced.
You haven't heard soany different theories that will change your decision. But they are also subjective to where the persons live and how things are operated there.

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[Zanab247]

Investing your money in estates business is a good plan, but make sure that the place is a developed place were you can get renters on time to start earning from the business. I don't think, is advisable for anyone to invest all his or her money in estates business, In case anything negative happen to the business he or she will not return back to zero level in the community than to invest part of the money on estates business, and invest the remaining ones on crypto investment. Since, we are still in the bear season,it will be favourable to increase your capital to invest in crypto, because the bull season is very close to investors to start earning a huge amount of money.