Robert Kiyosaki, author of the best selling book, Rich Dad / Poor Dad
has often stated, "Your house is not an asset".
However, the baby boomer generation adopted the lie "Your house is your biggest asset" and so have set up a world where their children become more and more homeless. And none of the boomers noticed that their houses weren't assets, because they saw the value go up and up and up.
Unfortunately, we have entered the time when your house won't even be worth the modern selling fee.
Instead, your house is your biggest liability.
It only sucks in money, and doesn't pay out anything. (Robert Kiyosaki's definition of Liability. Assets put money in your pocket. Liabilities take money out)
You can't really sell your house, because you are living in it.
The only time your house is considered your asset is in bankruptcy court, where they are liquidating your assets.
Until then, your house is the bank's asset.
And even after you pay it off, the crown insists that they own it (Real Estate)
Plus the idea that house prices always go up, has everyone believing it.
They even have a word for when people feel rich because their house might be able to be sold for a lot of money.
The "Wealth Effect"
But, what really happened is that banks, tax collectors and building departments colluded to make house prices higher.
Many places mandated bigger and bigger homes to as the minimum to be built. (what is a young person supposed to start out with? A McMansion?)
And the banks kept making bigger loans for longer and longer 5yr, 10yr, 30yrs....
And the tax collectors loved it, upping the tax any time they could.
So, what the boomers saw was their house go from $5,000 to $1,000,000. Wow, they are rich!
Unfortunately, only the boomers that sell real quick are going to get any of that.
This is true only under certain condtions
So, these things have been true, very true, up until this moment.
Now we are seeing cratering demographics in all developed nations.
Further, we are about to see the banks all collapse, and a withdrawing of mortgages.
We may even see the Fed collapse.
Bitcoin lending is getting interesting.
But, bitcoin is not inflationary, it is in fact deflationary.
So, we are actually going to see houses go down in # of bitcoin as more people try to share all the bitcoin. (all other things held constant)
We are also entering the Greatest Depression.
These things will have housing prices drop.
And i believe that suburban housing prices will drop past zero.
So, your house was never your biggest asset, or any asset at all.
And now that house prices will begin cratering, your house will be an even bigger liability.
Unless it has a garden, and a greenhouse, and some chickens...
