Life is a debt trap

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(Edited)

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I'm a bit late on my Leo post today, sincerest apologies as I have had a busy morning being a good citizen to the debt trap.

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So here it is, the moment that has been a mountain to climb and it's been a 3 year journey. This isn't my first home but it is my first build and it has me thinking about life and how and why we live it.

The Insert nation here dream doesn't really change on the country your live in. Home ownership is the pinnacle of said dream. The only thing that changes is price. There's even a tiered price system with wealthy areas having more expensive homes and lower socieo economic areas having cheaper homes.

If you're like me born into social/council/government housing another tier has emerged were there are now expensive homes in poorer neighbourhoods to meet the demand of kids who grew up in poverty but did well.

It makes no sense the housing market except houses are set at what people are willing to pay. If you believe that because that is also a lie. New estates like the one I'm building are Definitely not set that way. Their focus is on attracting that middle income to high income range for a patch of dirt that appears different.

Don't get me wrong it is different, because there are less houses and more nature reserves and parks the developers and government bodies lose out on profit. As that can't happen they sell the blocks of dirt for more and make them smaller so to balance their books with no thought of what people are willing to pay but rather someone is willing to pay. Which no doubt I am. Has a few added things like access to paid freeways which will get me to work in an hr and not 2 hrs+. COVID and working from home has given me a greater understanding of what that 4hrs a day is worth. Family.

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But yet, here I am celebrating that the bank is borrowing me money I need to build. Long gone are the days that someone could save to purchase a home like this in one hit while saving. Well I'm sure people could just not the average joe.

It took me 10 years of saving, purchase of a smaller unit and a lucky boom in the housing market that saw my unit rise in value of 3.5 whole bitcoins in 3 years. A greater ROI then if I had of invested in Bitcoin itself and it was cheaper.

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But what is the Insert Nation Here dream? Is it the home? No. Homes are a basic necessity and are required just so you can have stability and provide for your family. It allows you to get the job, it allows you to have a family, it allows you to effectively live. It's a relatively new concept believe it or not. Prior to this era and our parents it was log cabins, tents and a fancy house had 4 walls and a roof.

But governments and banks make no cash from that form of dwelling and people didn't need that much cash. So economies were smaller and life a lot easier because debt wasn't like it is today.

The the DREAM was created and backed up by building permits, regulations and standards. All this contributing to bigger houses. People pushing their opinion of what a home is onto others and then making them go into debt to build them.

Don't get me wrong, the house I am building is referred to as a McMansion. But they're only a new form of home that has been spurred in my generation.

See you can't have too much money floating around in people's pockets it puts the top end of town at risk as capitalism is able to he better supported and new industries and companies can easily form with high access to cash flow.

So the better way to retain wealth is to print it and hand it out and make a bunch or rules which forces people into an economic debt trap so that they must work for all their lives to pay off the lie.

Don't believe me? Go for a drive outside of cities into regional and remote areas where there isn't as much capital and the rules and regulations of cities disappear. My pop had a 4 wall and a roof house. My wifes pop, he was a bushy, a hard man, an actual black smith by trade, a pioneer and a settler.

He had land as far as the eye could see, his home. A swag under a tree, a camp fire and his roof were the stars. He survived this way until the ripe old age of 86. He had to do a stint in the hospital and wasn't happy about being in doors.

He had no debt and everything was paid in cash. His grandfather was an English Navy personal who when arrived in Australia was given land to operate as a farm.

He established a home stead and as a result 3 generations survived with no debt ever. Able to purchase whatever they wanted and need.

Obviously this level of wealth is bad for governments and banks so taxes rose, permits became a thing then running water and electricity was required. All of which was never needed for over 100 years and everything was fine.

It was fine, until the banks and governments wanted a slice of that 100+ year wealth.

His generation was the last and when he passed all but a tiny snippet of cash was left. Over 100 years 3 generations living off the land all of a sudden had to pay for all these things that were never needed throughout human history.

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And here I am, celebrating a mortgage and about to become a slave to the banks.

Friday food for thought.

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41 comments
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It's funny how we do that right, celebrate taking on a 6 figure sum of debt, because that's better than renting, now that's crazy!

Your grandfather had the right idea - tent and the stars, debt free!

Although it's hard to adjust to!

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Mortgage...debt....hmmm?
How it feels to be in debt?
In almost 67 years of my life, I never been in debt for more than ~ $100. And only for a day or two.
When it somehow used to happen to leave my wallet at home, and my colleagues got to loan me some cash for smth urgent.
In the days of ussr, debt & mortgage was practically not existing here at all.
Seems we came from a different world...

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Thank you my friend, I am a socialist by heart and studied much of the USSR although people call me a communist. I am a firm believer in providing for all equally.

This world I live in is sometimes too focused on making money and lots of it. There is enough wealth to share amongst all equally.

Thank you for stopping by.

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(Edited)

There is enough wealth to share amongst all equally.

:)
All animals are equal. But some are more equal than others...

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(Edited)

I am a socialist by heart and studied much of the USSR ...

Your are lucky not had to live in the "heaven of socialism", and taste all the "beauties" of it on your own skin. I was not so lucky.

Better dead than red (read: socialist, communist, marxist, leftist)

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Capitalism hasn't been much better here for me.

Upon European arrival my family was murdered, enslaved, used as sex slaves, sold off as animals, skeletons on exhibition in the UK, today tanks are sent in to push my people off their land for mining companies to rape the land of wealth without paying anything for it.

There are evils in all systems, it is the people that run it that are the problem and take advantage of others.

Rich nations today have high poverty, current Capitalism isn't much different to extreme communism. State payouts to private companies and the reduction in wages. Workers can not earn a living in many capitalist countries.

I understand your point though, I was not there and only read about it. I would like to learn more though. What's it like now?

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Housing cost are an absolute joke as a house is a basic need and now it's become a cash cow for the bank's etc.

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It's being treated as a commodity and a retirement investment. This is the lie that was sold to our parents generation because houses weren't typically being bought for that purpose previously. If you owned more than 1 house going back to our grandparents era people would have thought why?

Many people bought multiple so their whole family lived in the same street. This is still a practice in regional towns.

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A commodity it should never have become.

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Agreed with that, if COVID continues there will he and shift in the housing market which will see city prices reduce and more regional areas receive investment.

It will be interesting to see what occurs over the next 5 years.

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The truth is that it is something extremely crazy, for example in Venezuela the houses are cheaper than in other countries, since a house of 250mts2 with 3 bathrooms and 3 bedrooms, a parking lot, a built-in kitchen, a large living room and garden, can cost $10K and in Venezuela that is a lot, but for someone from another country that is nothing.
Of course here they lack many things, like constant electricity, constant water, constant internet, quality education and health, in short everything that a normal citizen would have in another country here is lacking.

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Oh wow, that is quite cheap and scary that the basic necessities aren't that good. I'd anticipate alot is due to global politics and Venezuela's stance on socialism.

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Not much different here in Canada, Govt and Banks love to have us totally dependent on them for life and everything else, just sheep to be sheared. Owning a home shackles us into permanent debt. So Congrats...on your voluntary... servitude?

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Hahaha yup, I'll probably be dead before I finish paying this off. Who knows though, Hive moon and retire as a blogger

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I'm hoping to score big on a sleeper Crypto myself so I can retire, Nursing is satisfying yet hard work.

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Ah yes, my wife is a nurse by trade. It is a hard job and very rewarding. But doesn't pay the big bucks.

Thank you for the work you do ❤

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working from home has given me a greater understanding of what that 4hrs a day is worth

Well said that during work from home we have realized the value of those hours we spent on traveling. Its a family time that we can utilize and this time is surely worth it. Dept is our part of life these days to have things life house or car and we cant go away easily. nice post.

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Idk how anyone under the age of 27 and hasn’t been in crypto for years can buy a house in the US, shit is so expensive.

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Wow, this story is so much like mine and billions of others around the world. It is obvious that the fiat model is designed to make us slaves of the system. It is so perverse that we are forced into their possession practically from the time we are born until our death, all through debt and the continuous issuance of money. First when we are born we already owe the clinic, then we must get into debt to study at a university (in the case of those who do not have access to public education), then again to buy a house and after 30 years when you finish paying you are subjected to survive with an insufficient pension the few years that remain of life and then your relatives get into debt to pay for the funeral.

Fortunately this chain of financial slavery can be overcome through the conscious use of cryptocurrencies, since they do not respond to a central power, so it is important to keep digital currencies away from the influence of governments and central institutions.

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Hey there, good to see a fellow Aussie on Leo. The state of the real estate market here is a bit crazy and scary. Luckily I got in slightly earlier, but a lot of my friends are struggling, especially with the current RE growth rate being exponentially higher than how fast people can save at the moment.

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Wonderful to see an Aussie on board! Hope you enjoy your time on Leo it's a great community and there are alot of really cool people on the platform.

What part of Australia are you in?

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I definitely will! It's been a steep learning curve but I'm getting there.

I'm in Sydney (unfortunately, in relation to real estate prices)

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I grew up on my grandpa's airport. I remember back in the 80s, this over 100-year-old pilot telling me how the government and regulation ruin everything. When he was 13 there wasn't no FAA and he bought his first bi-plane for $300, taught himself how to fly, and flew it home.

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Thats really impressive, being able to learn to fly a plane and then fly it home! Imagine that. Definitely a great way to beat the peak hour rush.

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