Quote:
Originally Posted by JDMDreams
Yea cuz I think this will create a new gen of old money rich from parents owning land. As the current prices already realistically can't be supported by income. Most young people can't even afford the mortgage for a 1 bed, at $600k if you have 20% down. Same with rentals, there's no way you will break even with the rent collected. Unless rent goes up like 20 30%.
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I've said this before but this really is nothing new.
There's something to be said about consumerism/individualism replacing the concept of generational wealth for modern middle-class North American (primarily) families. Many of the wealthiest families around the world grew their fortunes over multiple generations (including the wealthiest families in North America). Yet, most modern middle-class North American families are consumed with spending their wealth during their lifetimes while the upper/elite class (and other cultures) continue to accumulate for the next generation.
I feel bad for the families where every new generation has to start from scratch. Whatever wealth one accumulates in their lifetime is theirs to spend/consume, and theirs only. The next generation is completely on their own, and they should consider themselves fortunate if anything is left behind. They can't possibly compete vs. a family that passes wealth down from one generation to another. All it takes is 1 or 2 generations and the gap becomes almost insurmountable...
We learn about compound interest in school, and how one should invest as early as possible to maximize the effects of compound interest. Now imagine if you extend the compound interest term past our own retirement years, to 60, or even 90 years? The results are shocking.