Is Home Ownership a Ponzi or Scam?
The housing market has fooled millions into buying at ridiculous prices.
We have been warned — many times. A bubble always bursts! The housing market in many countries has been a scam, and it works like a Ponzi scheme. You have probably heard the following statements on numerous occasions.
House prices will always go up.
You need to get on the housing ladder.
It’s stupid to rent.
Keep trading up.
Buy a property to invest in and rent out to tenants.
You can’t go wrong by investing in bricks and mortar.
Property prices in many countries have skyrocketed and have become increasingly unaffordable, making it impossible for many people to buy their homes. The cost is reflected in rental fees as demand for a home in the rental sector grows.
Some have described home ownership as a Ponzi or pyramid scheme. The Guardian newspaper in the UK carried this article by Gaby Hinsliff, “Britain’s obsession with ownership has turned housing into a pyramid scheme”, and that was back in 2015. Since that year, property prices have continued to increase well above inflation and reduce the chances of people getting a foot on the housing ladder.
Property ownership has become an obsession, not just in the UK but in many other places, including China. Why do…
