Wednesday, April 22, 2015

Life As A House

Life As A House

I feel a little sorry for the generation of young people who face such tough and weird economic times.

Most young couples can't afford to buy a house, and many live with their parents well into their 30's.

Housing as an investment is a crock, and the downswing in house prices is a good example of what should happen. Strange that a house supposedly grows in value, while a car depreciates by some 30% the moment you take it off the new car lot. I'm not so sure a house is any different from a car. The same depreciation occurs — the roof sags, the pipes rust, the driveway cracks. If anything, a house should lose its original value rather than become more and more expensive.

The problem is that people see their house as some kind of miracle investment, but it's not. In fact, I predict a huge "correction" in the housing market as the younger generation realises that they are getting sucked into the housing game by thinking they "have" to buy to get into the "market."

The best thing they could do is let the market stagnate and falter. Let's see if we can't roll house prices back to reasonable amounts, so that the next generation can start the cycle all over again. Sure, some people will lose money, but you lost money the moment you bought that Chevrolet ... what's the difference?



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