Owning Other People's Homes Is Not So Great

I don't subscribe to the conventional idea of property, but I have some objecions specific to property investment.

Here in the UK, house prices have been rising fast for a long time. I am told that prices are ceasing to rise, but I don't know what the future holds. Some people say that there just aren't enough houses or that people want to live alone and that this is the cause of the housing boom (that most have no stake in). However, I believe houses are overpriced because of high profile failures of pension schemes. Many people don't know how else to prepare for retirement, so they invest in housing. Some probably have unrealistically expectations about what they can earn, but I think that many would take any return at all. I wouldn't want to borrow to be a British landlord right now.

Also, there is real work to be done. If you suceed in commanding enough rent from multiple properties, then society has lost (unless you plan to do volunteer work) the work and expertise that the rest of us have no choice but to offer. If you have earned the money to invest, then perhaps you deserve the rewards. If you have borrowed the money, then the real winner is the lender. If you were born into money, then you are ensuring that other people do the real work.

Finally, there are not enough houses for everyone to become a landlord. It is a higher priority for me that people own their own houses. Fewer people can do that if we all try to own their houses too. I want to own one house, but the prices must fall before I buy.

He's been doing this for, ummm, eighteen years now. In some of his better years, he made almost half as much money with real estate as I made writing code. 'Course, he does also know how to put down a hardwood floor now.

The thing is, some small number of people manage to profit from the whole flipping/buying houses with no money/rehabbing properties thing. However, a much larger number of people either destroy their credit on the first or second deal, or struggle along for years making less than they would by getting a more normal job.

It's a whole lot like selling this. Right down to the couple dozen rich people at the top who actually haven't actually worked in the business itself for years, but instead go around giving motivational speeches and selling tapes on "HOW TO SELL MORE!!1!" You see, that's where the real profit comes from.