Rentvesting kills the economy

[Emjay24]

It's both engineers and architects who might not able to get client for every month, but everything are depends on them. Engineers can work as a supervisor or surveyor while architects can work as a freelancer.

Just do yourself a favour, Upgrade your skills to be specialized, solve problems and maintain good relationships with clients and your services would be high in demand. I have friends who feature under these umbrellas, I have a friend who was a block layer but upgraded his skills to that of a site engineer and for the past 4 years a client who liked his output has retained him accross his multiple sites.

For Architects, beyond the regular drawings, learn how to use relevant software and draw architectural designs properly and keep upgrading, the chances of being totally out of job would be slim since you can attach to a company and still do freelance.

The problem with most engineers and architects is that most of them are usually not very specialized and as a result are not big catches in the industry.

[YUriy1991]

Real estate is a sector of it's own and just like rvery other sector, it has its contribution to the economy. It may not create much jobs like other sector, but it is an integral part of the economy because shelter full under the basic needs of man. If real estate  companies pay taxes, that is enough since the money realised from such taxation can be invested into agriculture and other sectors that create more jobs. Hence, I don't agree with you that real estate kills the economy. 

The property business must be supported by other businesses. The home building and rental business will thrive if a city is developing, as people will flock to and invest in the area. However, this business will also die if the economy in that area is sluggish. People will easily move elsewhere in search of new economic centers. Businesses in this sector will always be profitable if run in large cities. Many people from all over will enjoy the economic benefits of cities with strong economic growth. I completely agree with your opinion. In my opinion, the property business will not kill the economic system, but these businesses must be in line. If you want to develop a business in the property sector, first ensure that the local economy is growing rapidly and sustainably.

[jostorres]

The property business must be supported by other businesses. The home building and rental business will thrive if a city is developing, as people will flock to and invest in the area. However, this business will also die if the economy in that area is sluggish. People will easily move elsewhere in search of new economic centers. Businesses in this sector will always be profitable if run in large cities. Many people from all over will enjoy the economic benefits of cities with strong economic growth. I completely agree with your opinion. In my opinion, the property business will not kill the economic system, but these businesses must be in line. If you want to develop a business in the property sector, first ensure that the local economy is growing rapidly and sustainably.

You would think so, but that is not the case in many situations. If the construction business itself creates a lot of demand, then it would support itself. Because we are talking about so many people working on it. You would have to hire maybe a thousand people or more to build a great gated community for example, we are talking about buildings on top of buildings, and takes years to build it, that creates money for all the workers on it, from the simples job to highest one, and those people in return buys some place, maybe not there, but somewhere, and in circle we see money switching hands.

To be honest, of course, it helps if we are talking about a bigger economy, but it is not a must, as long as construction ends up with making money, because if it doesn't, then we see how that turned out in China and 2008 USA.

[SUPERSAIAN]

It's absolutely true that there are many countries that invest solely in construction and housing. Their economies will never be good, and they aren't currently. Good results can be achieved in the short term. Any negative developments in the construction sector won't yield even good results in the short term. China has invested heavily in construction, and despite its strong economy, the housing crisis is a constant concern.

If they had invested solely in construction, the country's economy would have completely collapsed. Their focus on technology and other investments has protected them.

[Uruhara]

Rental Property Investment or can be called rentvesting is a type of investment wherein you invest in real estate whether to live on it, rent it out, or build business on it. A lot of people dream of owning lands or rental property but this might actually is what kills the economy. Imagine the type of jobs that real estate generate. There are engineers, architects and construction workers. But once the building gets built, there will be no more jobs from that real estate or there's less.

Now look at rich countries. What do they have? They have invested in research & development which is why they have the leading brands all over the world. Korea has Samsung. Germany has Mercedez-Benz. Japan has Toyota. And many more. The companies in which these are made from generate jobs and it allows the economy to circulate well. Not only does these industries provide employment they also provide exports.

If the government or the collective population only focuses on real estate, there's little to no productivity in the economy. I am not saying real estate should not be on your lists of investment option of course balance must be well maintained however people must stop being so risk-averse because it is what slows down the economy.

Investing in property is actually my dream and my ultimate goal. Because if we manage it well and buy at the right time and in the right location, we can also grow the economy there. Here, for example, many people own tea plantations, and every day the landowners employ many people to pick tea. This helps the local community economically by providing them with work on the tea plantations.
Property has a broader scope. Unlike real estate, which is just a subset of it. But both are quite promising in my opinion.

Investing in research and development can also be profitable if successful, and even if you already have a global name, collapse can still happen. I know the name of a cell phone product that dominated the market in 2007 or before and after that. But they lost the competition after the emergence of smartphones. That brand has now fallen in reputation and fame. The risks are high, even though the potential is also high. The level of competition is also high. I prefer something with an element of calmness. Property like land will even continue to rise in value without us having to do anything at all. As long as it is land located in the right geographical area.

But when it comes to rentvesting, there is a double burden that must also be considered.
And in the end, it cannot be the main focus of investment. Taking risks is also necessary. Personally, I don't just invest in one thing.

[Cryptomultiplier]

Rentvesting kills the economy because it doesn't evenly distribute wealth and that's your point OP, but have you considered that maybe entrepreneurship is a way better investment than investing in real estate, but it is difficult to find investors and when you do, the banks use taxes to take a fair share.

If governments would invest more in entrepreneurs growing, in research and development, in agriculture and food production, a lot of the issues revolving around of poor economy would be unimportant because the economy would have enough jobs, housing would be cheaper as well as labour and wealth would be distributed evenly from diverse sources.

[dunfida]

Real estate is a sector of it's own and just like rvery other sector, it has its contribution to the economy. It may not create much jobs like other sector, but it is an integral part of the economy because shelter full under the basic needs of man. If real estate  companies pay taxes, that is enough since the money realised from such taxation can be invested into agriculture and other sectors that create more jobs. Hence, I don't agree with you that real estate kills the economy. 

The property business must be supported by other businesses. The home building and rental business will thrive if a city is developing, as people will flock to and invest in the area. However, this business will also die if the economy in that area is sluggish. People will easily move elsewhere in search of new economic centers. Businesses in this sector will always be profitable if run in large cities. Many people from all over will enjoy the economic benefits of cities with strong economic growth. I completely agree with your opinion. In my opinion, the property business will not kill the economic system, but these businesses must be in line. If you want to develop a business in the property sector, first ensure that the local economy is growing rapidly and sustainably.

Real estate stands as its own sector and plays an important role in every economy because shelter is a basic human need. it may not create as many jobs as manufacturing or agriculture but it supports stability and growth in other industries. when real estate companies pay taxes that money can be used to support sectors that create more employment. this is why saying real estate kills the economy does not hold weight. it actually supports the bigger economic structure.

The property business depends heavily on the health of the local economy because home building and rentals thrive when a city grows. people move to places with strong economic activity and that movement increases demand for housing. if the economy becomes slow the property sector suffers because people leave to find better opportunities. this makes real estate a mirror of how strong or weak the city is. Property is always profitable in large cities because the economic flow is constant and the population keeps increasing. businesses rise people invest and the real estate sector becomes a central part of the growth.

[Fortify]

Rental Property Investment or can be called rentvesting is a type of investment wherein you invest in real estate whether to live on it, rent it out, or build business on it. A lot of people dream of owning lands or rental property but this might actually is what kills the economy. Imagine the type of jobs that real estate generate. There are engineers, architects and construction workers. But once the building gets built, there will be no more jobs from that real estate or there's less.

Now look at rich countries. What do they have? They have invested in research & development which is why they have the leading brands all over the world. Korea has Samsung. Germany has Mercedez-Benz. Japan has Toyota. And many more. The companies in which these are made from generate jobs and it allows the economy to circulate well. Not only does these industries provide employment they also provide exports.

If the government or the collective population only focuses on real estate, there's little to no productivity in the economy. I am not saying real estate should not be on your lists of investment option of course balance must be well maintained however people must stop being so risk-averse because it is what slows down the economy.

That is one sector of the economy that is definitely parasitic - there's no good reason for companies/individuals to own hundreds of homes and if we want to live in a fair capitalist society then it should be outlawed. It's possible to let someone own 2, maybe even 5, homes for personal use but it should not be allowed to make a commercial operation out of it. There's no difference between what they are doing any the feudal manors that were so despised in centuries gone by. They are not adding any value to the world, just draining peoples income and making it ever harder for people to get on to themselves. Not only that they are often highly leveraged and add increased risk into the property market with such high LTV purchases.

[EluguHcman]

So you are saying real estate investment is a consumption of economy growth and it offers a less empowerments opportunity?
I guess you don't know what you are talking about because those construction Jobs mentioned are skilled jobs are just skill based jobs which service.
Real estate is an asset because it, if also increases

[sleepfirefly]

Also, the main problem why other countries aren't focus on Research and Development is due to lack of smart people in their country and they don't have much money to hire expatriate.

it’s not totally unheard of that a country experiences brain drain wherein the educated ones leave the country to work somewhere else because other countries have better pay and benefitd

[davis196]

There's no "this or that" type of choice. Most countries invest in both real estate(building more houses and apartments) and in actual industries. I can agree that there is a real estate bubble, that keeps growing in many countries around the world, maybe "rentvesting" also contributes to the real estate bubble and housing prices are going thru the roof. I think that the main contributor to the real estate bubble is the central banks and their monetary policies. Mortgages became really affordable, which leads to growing demand for housing units. This pumps the prices and the profits in the construction sector, which leads to a growing demand for construction workers, architects and engineers.

[Lida93]

The real estate sector is an integral part of the whole industries that makes up the economy of a country. It has it role it plays to the economy and especially for a country with an overblown population there would ultimately be a massive competition for landed properties, and a high demand means high cost and lucrative turnover for real estate investment.

If the government or the collective population only focuses on real estate, there's little to no productivity in the economy. I am not saying real estate should not be on your lists of investment option of course balance must be well maintained however people must stop being so risk-averse because it is what slows down the economy.

No reasonable government in this competitive world builds her country's economy focusing on a particular sector. Even the private sector industries diversifies their investments so am not sure there's any country that relies only on real estate as their main stay.

[Nightwalker(NW)]

As far as I know currently real estate business or rental are still profitable, is it those that constructs the site, and of course when a particular estate is being established they moved on to the next phase, and of course every section is valuable. When an estate is being constructed it gives an opportunity for people to rent it out, and there are also workers who works within the estate. the people who leaves inside the estate either pays their rental weekily/monthly or even yearly at this point the owner or the company who owns such properties makes profits from it. So to me it's still profitable, now when you talks about the automobile company's they do create employment opportunities for those who are qualified working in those field.

[Synchronice]

Rental Property Investment or can be called rentvesting is a type of investment wherein you invest in real estate whether to live on it, rent it out, or build business on it. A lot of people dream of owning lands or rental property but this might actually is what kills the economy. Imagine the type of jobs that real estate generate. There are engineers, architects and construction workers. But once the building gets built, there will be no more jobs from that real estate or there's less.

Now look at rich countries. What do they have? They have invested in research & development which is why they have the leading brands all over the world. Korea has Samsung. Germany has Mercedez-Benz. Japan has Toyota. And many more. The companies in which these are made from generate jobs and it allows the economy to circulate well. Not only does these industries provide employment they also provide exports.

If the government or the collective population only focuses on real estate, there's little to no productivity in the economy. I am not saying real estate should not be on your lists of investment option of course balance must be well maintained however people must stop being so risk-averse because it is what slows down the economy.

You have to keep in mind that housing is necessity and severe housing crisis seriously affects the society, just look at rent prices in Dublin. When there are few houses but demand is very high, people have to work more, find side gigs to pay the rent. That doesn't benefit the economy, that only makes rich people richer. We always have to keep in mind the quality of life of an average citizen too. What's the point of better GDP numbers if the life sucks for the 99% of people?

I completely understand your point and I agree with that but I don't think that real estate investing kills the economy. This business sector has to exists too because it really benefits lots of people and it's necessary. We have to build houses, properties, factories and many other things. Usually, the government only focuses on certain niche when that niche significantly needs development locally. Real Estate is not part of that in many countries, so I wouldn't say that the government focuses on that.

[DrBeer]

Rentvesting kills the economy because it doesn't evenly distribute wealth and that's your point OP, but have you considered that maybe entrepreneurship is a way better investment than investing in real estate, but it is difficult to find investors and when you do, the banks use taxes to take a fair share.

If governments would invest more in entrepreneurs growing, in research and development, in agriculture and food production, a lot of the issues revolving around of poor economy would be unimportant because the economy would have enough jobs, housing would be cheaper as well as labour and wealth would be distributed evenly from diverse sources.

In order for the government to invest, it must have free money. The government (state) has no money other than taxes; the state does not engage in business. Of course, the state can print new money, but this will further damage the economy.
Therefore, the state can only promote business development through various support methods, without investment, such as tax cuts or the creation of tax-free zones.
Therefore, we ourselves must look for ways to improve our standard of living, rather than wait for handouts from the state.

[Koadharber]

Rentvesting kills the economy because it doesn't evenly distribute wealth and that's your point OP, but have you considered that maybe entrepreneurship is a way better investment than investing in real estate, but it is difficult to find investors and when you do, the banks use taxes to take a fair share.

If governments would invest more in entrepreneurs growing, in research and development, in agriculture and food production, a lot of the issues revolving around of poor economy would be unimportant because the economy would have enough jobs, housing would be cheaper as well as labour and wealth would be distributed evenly from diverse sources.

In order for the government to invest, it must have free money. The government (state) has no money other than taxes; the state does not engage in business. Of course, the state can print new money, but this will further damage the economy.
Therefore, the state can only promote business development through various support methods, without investment, such as tax cuts or the creation of tax-free zones.
Therefore, we ourselves must look for ways to improve our standard of living, rather than wait for handouts from the state.

The argument about rentvesting killing the economy comes from the idea that wealth becomes locked in property instead of circulating through productive sectors. but when you look deeper entrepreneurship often gives far better returns for the whole economy. the problem is that starting a business is risky and finding investors is hard and banks take a big share through taxes and interest. if governments supported entrepreneurs research agriculture and real production more aggressively the entire economic structure would become healthier. more jobs more innovation and lower housing pressure because wealth would flow from many sources not just property.

But for a government to invest heavily it needs free money and most governments do not have that. the only money they have is what they collect from taxes. the state does not run businesses so it has no natural income. printing new money creates inflation and causes even more damage. so the only realistic path is for governments to support business in indirect ways like tax cuts incentives and special zones where companies can grow without heavy regulation.

[Jewan420]

Although real estate is not the main pillar of a country's economy, it plays a big role in the country's economy. Real estate business creates employment for people of various professions and a large part of the production you are talking about is used in real estate. Production is certainly the main pillar of a country's economy, and real estate supports that pillar and helps the economy to stand properly. Imagine, you have a lot of money that you have earned through production, but you cannot get a luxurious house or a comfortable house to live in. Even real estate creates employment for many people, big and small, many businessmen depend on it. But it does not create permanent employment.

[suhadi88]

Although real estate is not the main pillar of a country's economy, it plays a big role in the country's economy. Real estate business creates employment for people of various professions and a large part of the production you are talking about is used in real estate. Production is certainly the main pillar of a country's economy, and real estate supports that pillar and helps the economy to stand properly. Imagine, you have a lot of money that you have earned through production, but you cannot get a luxurious house or a comfortable house to live in. Even real estate creates employment for many people, big and small, many businessmen depend on it. But it does not create permanent employment.

This sector plays a meaningful role in absorbing labour and, in doing so, contributes to the broader economic activity of the community. For entrepreneurs who can maintain consistency, it also functions as a long-term investment, since housing remains a fundamental human need—surpassed only by food and clothing. Its value, therefore, extends beyond short-term gains and into the essential infrastructure of daily life.

For individuals seeking stable employment, it becomes important to work with reputable companies under balanced and fair conditions, as both sides depend on one another. Established firms, whether government-linked or private, typically maintain networks that secure a continuous flow of projects throughout the year. As skilled workers, we are able to support these projects effectively, provided we meet the required standards and verification processes. In that sense, the relationship between trained labour and reliable employers forms a mutually sustaining foundation within the sector.

[goldkingcoiner]

Rental Property Investment or can be called rentvesting is a type of investment wherein you invest in real estate whether to live on it, rent it out, or build business on it. A lot of people dream of owning lands or rental property but this might actually is what kills the economy. Imagine the type of jobs that real estate generate. There are engineers, architects and construction workers. But once the building gets built, there will be no more jobs from that real estate or there's less.

Now look at rich countries. What do they have? They have invested in research & development which is why they have the leading brands all over the world. Korea has Samsung. Germany has Mercedez-Benz. Japan has Toyota. And many more. The companies in which these are made from generate jobs and it allows the economy to circulate well. Not only does these industries provide employment they also provide exports.

If the government or the collective population only focuses on real estate, there's little to no productivity in the economy. I am not saying real estate should not be on your lists of investment option of course balance must be well maintained however people must stop being so risk-averse because it is what slows down the economy.

Is this not basically what sparked the previous real estate crisis in China?
Too many real estate investments that now nobody wants to buy and they just become decrepid and start falling apart.

It's like a restaurant preparing too much food and hoping that they get a huge amount of customers before it all spoils. Not a smart move.
And completely ignoring realistic market demand out of the fear of missing out on potential profits.

So much for speculation in real estate.

[Taskford]

Rental Property Investment or can be called rentvesting is a type of investment wherein you invest in real estate whether to live on it, rent it out, or build business on it. A lot of people dream of owning lands or rental property but this might actually is what kills the economy. Imagine the type of jobs that real estate generate. There are engineers, architects and construction workers. But once the building gets built, there will be no more jobs from that real estate or there's less.

Now look at rich countries. What do they have? They have invested in research & development which is why they have the leading brands all over the world. Korea has Samsung. Germany has Mercedez-Benz. Japan has Toyota. And many more. The companies in which these are made from generate jobs and it allows the economy to circulate well. Not only does these industries provide employment they also provide exports.

If the government or the collective population only focuses on real estate, there's little to no productivity in the economy. I am not saying real estate should not be on your lists of investment option of course balance must be well maintained however people must stop being so risk-averse because it is what slows down the economy.

Is this not basically what sparked the previous real estate crisis in China?
Too many real estate investments that now nobody wants to buy and they just become decrepid and start falling apart.

It's like a restaurant preparing too much food and hoping that they get a huge amount of customers before it all spoils. Not a smart move.
And completely ignoring realistic market demand out of the fear of missing out on potential profits.

So much for speculation in real estate.

Absolutely and that is the essence of real estate crisis happening in China. They built so many of those real estate asset and think about that the masses will grab it, but they forget to identify first that there's demand on those projects that they are doing.

So what happen is they cause over supply of those assets and as result they create lots of ghost cities. They failed miserably on that, but they try different approach like building tech hubs, industrial parks and other things to possibly stimulate demands.