1 | Comparison of the current journey to buy a house vs 1980 | ||
|---|---|---|---|
2 | years old: | 2023 outlook | 1980 outlook |
3 | 18-21 | Go to university, possibly borrow money, pay high accomodation cost | Earn wage and learn skill that way. |
4 | 25 | Internship or low paid job. Fill forms for income tax and "social security". Pay for courses, certificates, licences to be able to do the profession (e.g. accountant, financial adviser, lawyer, nurse, physiotherapist) - most of them are "regulated" | Just do the work, no paperwork, no certificates (compare effort to obtain truck driving licence in 2023, work permit, opening restaurant etc.), no barriers other than competition. |
5 | 30 | Tired of paying back debt (learning about debt spiral the hard way), filling forms everywhere, can't easily change profession or start business due to non-compliance to regulatory requirements. Also, the old certificates need to be renewed, e.g. accountant needs to keep up with new code. Afford deposit for mortgage for a house which price does not include monetary premium (far away from city and work) or skip it. Can't afford a gov't approved car which is permitted to enter city centre. | Start building a house or get mortgage and buy one, little paperwork. Start your own business, it is possible to contract with state or corporations without much regulatory overhead (compare with the amount of effort, documents, evidence, capital structure, audits... needed in order to bid in 2023). |
6 | 35 | Divorce and legal dispute depletes all savings, imposes obligations and rises penalties (go to jail for reasons not valid otherwise). | Keep on doing business, hiring employees, getting new orders and clients. Buy a new car. |
7 | 40 | Take care of your parents, pay for medicine etc. which were promised to be covered from taxes. | Move to a bigger house. |
8 | 45 | Take mortgage at any cost cause it is the last moment (bank don't offer mortgages to people above 45). Tax authority scrutinizes your finances and imposes penalty for unreported income. | Afford to pay mortgage back. Possible rent out space (become landlord) and earn from it |
9 | 50 | Too old for the job. Look for another, low income one. | Enjoy time with friends, family, offspring wedding etc. |
10 | 60 | No assistance from children because they are in difficult financial situation too (they follow the same path as yours and suffer from divorce trauma). | Retire, collect pension and collect rent. |
11 | 70 | Low pension if any, poor health, difficult to pay mortgage back. | Death. |
12 | 75 | Death and inheritance tax and debt for heirs. |