Everyone will tell you: owning residential real estate is a good thing.
We could make the comparison between renting a property and buying it. Many websites have already written many articles on this subject. It is therefore not relevant on our part. First, because it is very complex as a comparison. Here are some examples of this complexity:
- Long-term bank interest rates, 20 or 30 years.
- Your remuneration over the long term.
- Value of your property in the long term.
In summary, it is the word “difficulty” that comes up every time and the expression “in the long term”. So all the websites that make predictions potentially make false predictions. So, it is difficult to know if owning residential real estate is a good thing.
So what can we bring from archiplain again?
We are talking about the long term. So let’s assess the possibilities for change in the long term.
Bank interest rates can be very high in the event of renewed inflation. It can be very low in the event of an economic depression. Can we say that there is never a recession? The examples of the past demonstrate the opposite: the 2008 crisis.
Your remuneration over the long term
There is a fundamental trend of change in the paradigm of the economy. it is called the uberization of the economy. This expression comes from the company Uber which employs mainly freelancers). Because of uberization, people’s wages are no longer fixed as before. It is therefore uncertain to calculate interest rates on the basis of unstable remuneration.
The value of a property
It can also vary over the long term:
- fragility of the materials used
- declaration of a new flood zone
- presence of a problem nuclear power plant in the vicinity
- presence of termites
How to counter all this: simple, be rich !!! So, you can have properties in several different places. You can call on many specialists in natural and artificial risks. You can go to several different countries to increase the tax risk, …
More seriously, you must consider buying a real estate as a very serious project that requires a lot of work. For example, if you fear flooding, built on a hill, at the top, you may have lightning, but no flood.