There are many different reasons why people buying a real estate properties. I would identify three different approaches to home buying:
- Investment approach, where people buy houses as store of value, potential source of income and similar
- Traditional approach, where people buy houses because of traditional and cultural values and needs, such as shelter and safety
- Mixed approach, where people buy houses because of both above
Why people today actually buy houses? Is it this type of investment actually good investment? Based on what criterions they make decisions?
Phreakolosophy is not going to answer these questions. What phreakolosophy is going to do is to offer alternative approach to decision making in this kind of purchase. Phreakolosophy’s mission is to make things even more complicated and to suggest some solutions as well.
Why not to use investment approach? Because a house depreciate in value and too many factors that dictate the price. What people pay in most cases is a land, which never depreciates, but remember you never own the land 100%. It is risky business and it’s really hard just be a passive investor. It’s almost like a full-time job.
Why not to use traditional approach?
Because there is a dozen of substitutes that are way cheaper and almost identically functional. Also, average family today counts a way less members than before, so is it purchase of house really effective? Lifestyle changes globally, and traditional approach home buyers should at least consider what they giving up of and is it purchase rational decision.
Because there is a dozen of substitutes that are way cheaper and almost identically functional. Also, average family today counts a way less members than before, so is it purchase of house really effective? Lifestyle changes globally, and traditional approach home buyers should at least consider what they giving up of and is it purchase rational decision.
Why not to use mixed approach?
Of course because of all above, moreover, unclear goal is rarely good option.
So finally what phreakolosophy suggest for you dear currently undecided and potential future buyers is:
- Rent forever, live a life. It is way cheaper and easier to maintain. No property or maintenance or any other taxes. You always can find a way to invest your money in less risky and volatile investments. Also, when you rent you will be more effective in terms of actual needs for space, means you already saving money on some way.
- Buy a boat, yacht and similar vessel. You will definitely be different. You will be cool. You will be the one. Practically, you can live wherever you want. Of course it is not ideal, but it’s an option. From financial perspective, if carefully decided to apply this option, many would be surprised. As this is just a phreakolosophy site, we will leave that to you to research.
- Buy a house on wheels. Yes, consider motorhome or caravan as place for living. Think about home requirements and check this link please http://www.luxurylaunches.com/transport/kabe_royal_tower_is_the_tallest_caravan_for_now.php. Yes, you will be cool again. You will live wherever you want. No, you don’t have to pay property tax and similar, and you own it 100%. For ones who think it’s a bit pricey, please don’t forget this is a brand new luxury caravan.
Stay free and confused forever,
Your phreakolosophy
Wisdom of the week:
Wisdom of the week:
"In order to get a personal loan, you must first prove you don’t need it."
Murphy’s Law, www.murphys-laws.com
Murphy’s Law, www.murphys-laws.com
