Z
Yes, but that is not the example I gave.As usual I don't get this, more simply if I purchase a house for 10K and it goes up by many multiples say 10 times = value of 100K and it collapses by 50% ie half it's now worth 50K.
Ok, fair enough - that's just as much my fault.You don't have to prove anything, I don't properly understand your posts,
I think there's a big flaw in your chain of thinking here.My question was can you or someone else tell me which class of people in Ireland are relatively wealthy (nice house, 3 holidays a year, 2 cars, nice lifestyle) as a percentage of the population. Is it the rental class, the rental class with shares, the home owner with a good job, the home owner with shares, the home owner with shares and cash, the home owner with investment or commercial property, the farmers with 50 acres etc.
Well I'm in my mid 30's and now unemployed. By the time I get a good job and rebuild my wealth I will be 40. I'm single and will remain so.
There is noway in the world I'm going to buy a house. Why would I want to lumber myself with a 30 year mortgage for? I am currently renting in a sound area and have great neighbours and family nearby.
Having a mortgage is a mugs game.
So yes I could well imagine that 95% of rich people own houses (in Ireland anyway). It wouldn't prove a thing, in the same way that knowing that 99% of rich people go on fancy holidays. These statements don't allow you to conclude anything about which is the cause and which is the effect.
So yes I could well imagine that 95% of rich people own houses (in Ireland anyway). It wouldn't prove a thing, in the same way that knowing that 99% of rich people go on fancy holidays. These statements don't allow you to conclude anything about which is the cause and which is the effect.
How did you join those dots?But it would prove that to be wealthy you should own your house surely? Ergo buying a house is a good decision.
How did you join those dots?
I'm not being sarcastic. I thought darag's post was a well constructed argument demonstrating how correlation does not imply causation. I need it explained to me how anyone can confer from that the exact opposite meaning.I think Howitzer is asking how you concluded that buying a house is good decision just because a high percentage of wealthy people do it.
Millions of wealthy people smoke around the world. That doesn't mean that smoking is a good idea or likely to make you wealthy.
I think Howitzer is asking how you concluded that buying a house is good decision just because a high percentage of wealthy people do it.
Millions of wealthy people smoke around the world. That doesn't mean that smoking is a good idea or likely to make you wealthy.
Ok I get it now.
My conclusion is look to see who the wealthy are and do as they do.
It is not a bad position to be in all told, but it is still a big decision for me, though not as big as 2006 when you lost massively either by staying in or by staying out
Again, I miss the logic of this.I did continue saving just in case I was wrong.
Hi Gearoid
I don't get this. You believed that property prices were too high in 2006, so the decision was easy. You did not lose at all by staying out of the market.
It's a much tougher decision now as you have less confidence in your forecasts for property prices. If you buy now and prices fall, you lose. If you stay out, and prices rise, you lose.
I should explain to be fair I have shared my house with a close relative where rent is limited to covering costs. This has facilitated saving. I take your point re renting.The other problem is the poor protection of tenants and landlords, so renting is no fun either, even if it makes sense financially.
I will hold off on doing the same this year and focus on short-term liquid savings, though doing the same this year has been tempting given the possible future reduction in pension relief.
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