The reason people (even good people) buy extra properties is lack of universal basic needs: food, housing, and health care.
Preparing for a worst-case scenario takes millions in the US, and “responsible” families prepare for that. If suddenly one is unable to work and laden with medical treatments that cost $10k/mo for the rest of their life, how can that be paid without financially destroying the family? That takes something like $1m in investments and 2 investment properties to rent out.
This financial asset scenario is considered smart and an ideal situation to be “secure”.
And yet, that’s two properties that could have been owned by someone else. That’s capital generally invested in large corporations (through index funds), giving said corporations even more weight to swing around.
If one were to have these basic needs guaranteed, that scraping and scrounging to “get ahead” is no longer this intense need to survive comfortably.
It totally changes the underlying culture. Without these basic needs, everyone becomes a potential rival for resources. Now that corporations have joined the family housing market we are even more incentivized to step on our fellow man to grab and acquire before the corporations take it all.
On so many fronts this pyramid scheme has been playing out, and now the resources have run out.
I apologize as this turned into a rant. But something is brewing. Everyone feels the unrest. Everyone feels the acute wrongness even if they can’t quite describe why.
The reason people (even good people) buy extra properties is lack of universal basic needs: food, housing, and health care.
Preparing for a worst-case scenario takes millions in the US, and “responsible” families prepare for that. If suddenly one is unable to work and laden with medical treatments that cost $10k/mo for the rest of their life, how can that be paid without financially destroying the family? That takes something like $1m in investments and 2 investment properties to rent out.
This financial asset scenario is considered smart and an ideal situation to be “secure”.
And yet, that’s two properties that could have been owned by someone else. That’s capital generally invested in large corporations (through index funds), giving said corporations even more weight to swing around.
If one were to have these basic needs guaranteed, that scraping and scrounging to “get ahead” is no longer this intense need to survive comfortably.
It totally changes the underlying culture. Without these basic needs, everyone becomes a potential rival for resources. Now that corporations have joined the family housing market we are even more incentivized to step on our fellow man to grab and acquire before the corporations take it all.
On so many fronts this pyramid scheme has been playing out, and now the resources have run out.
I apologize as this turned into a rant. But something is brewing. Everyone feels the unrest. Everyone feels the acute wrongness even if they can’t quite describe why.