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RE: The road to crypto retirement and an oversold housemarket
Did you realize there are some really big difference between crypto and housing market? I would say the most essential difference is that we can't become really old without an house. And we can perfectly live or lifes without crypto currency.
So if it comes to having a roof above your head you basically have 2 choices. You can buy or rent a house.
Im not really talking about the necessity of a house that is a different story, we can all agree a roof over your head is something essential in life.
What I am talking about is the fact that if you put only a couple hunderd bucks in crypto people will say that you are gambling, whil way too often people are buying a house without being good informed on it. Those mortgage dudes can make a story perfect to sell, and the majority of the people will not have the background to check it for errors and what is what makes it dangerous.
Because I have seen a lot of people around me affected for instance by the housemarket collaps of 2009/2010 in Holland who are still paying for a house they are not owning anymore for a long time now. That is what I am saying, because the general vibe about buying a house is considered good, people are not seeing they could also potentially loose money on it!
I think you are correct about that.
People often forget that the need to repay their loan. And I see many more mistakes which I, as economist, really don't understand.
Nowadays I hear people saying that it's more expensive to buy a home then to rent one. As reason they say that they pay €100 or €200 more per month for the mortgage then for rent. But what they forget is that after 30 years a bought home is fully theirs without having any debt. And if you save €200 per month (€2,400 per year / €72,000 in 30 years) you will never save €250,000 the amount you paid for the home. Of course there is a risk that the market will drop. But even then on the long term buying is most of the time better.