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| Illutration created and copyright by Drake Kim |
There are two types of people in the world: those who own homes and those who do not. And the gap between them is widening. If you still find yourself constantly searching real estate apps while moving from one rental to another, you might be one of the most disadvantaged players in the strange game of modern capitalism.
In the 1970s, homeownership was almost a rite of passage that naturally followed marriage. A steady job allowed people to buy homes at prices only a few times their annual salary, and even with loans, repayment was manageable. But today, the housing market is on fire, with apartment prices soaring to dozens of times the average yearly income. Where did we go wrong? Or were we ever really at fault?
Real Estate: The Jungle of Capitalism
Economist Thomas Piketty once said, "A society where capital grows faster than labor inevitably deepens inequality." In other words, making money is no longer as effective as investing money. Who realized this uncomfortable truth the quickest? Speculators and those who skillfully leveraged government policies.
History shows that real estate markets have always gone through cycles of bubbles and crashes. Japan’s housing bubble in the 1990s, the 2008 U.S. subprime mortgage crisis, and the global real estate boom post-2020 all follow the same pattern: prices surge, people rush in, and someone at the end of the cycle pays the price.
The Mystery of the Housing Market: Who Controls the Game?
Politics and economics are inseparable. Governments claim they want to stabilize housing prices, but when prices fall, the economy wobbles. While imposing regulations and real estate taxes, they also cut interest rates and inject liquidity to boost economic growth. Meanwhile, genuine homebuyers are left confused and lost in the chaos.
Real estate policies often resemble a staged performance. Governments introduce strict regulations, the market resists, and paradoxically, prices skyrocket. Every time people say, “This time is different,” the result is the same. The real issue? This show never ends.
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| Illutration created and copyright by Drake Kim |
What Is the Solution?
It’s time to face reality. If homeownership is increasingly out of reach, we need to learn a different set of rules. Here are some strategies to consider:
1. Don’t Set a Fixed Timeline—Have a Strategy
No one knows when housing prices will drop. Instead of waiting aimlessly, focus on growing your assets in a structured way. Look for ways to build wealth consistently rather than just hoping for a market crash.
2. Rethink the Concept of Homeownership
Let go of the idea that you must own a home. In many countries, long-term rentals are a standard way of life. If buying a home is unrealistic, prioritizing better living conditions might be the smarter move.
3. Don’t Let the Market Control You
Avoid falling into the “Buy now or never” mentality. The real estate market is unpredictable. A long-term approach, assessing your financial situation carefully, and waiting for the right opportunity is crucial.
4. Expand Your Investment Perspective
Real estate isn’t the only way to grow wealth. Stocks, ETFs, gold, and cryptocurrencies offer alternative investment opportunities. Thinking “Real estate is the only answer” can be a dangerous trap.
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| Illutration created and copyright by Drake Kim |
Hope Still Exists
The economy is a living entity—it goes through crises and recoveries. After the 2008 financial crisis, those who had the courage to invest in real estate while others turned away accumulated significant wealth. Even now, someone is finding new opportunities.
Ultimately, real estate markets are driven by psychology. Don’t let fear dictate your decisions—analyze the situation rationally. Most importantly, remember: homeownership is not the sole measure of success in life.
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