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The peer pressures of buying a house

I like Ramit Sethi’s blog because it is both entertaining and his free stuff is really of high quality (Which makes you wonder about his paid ones.)

So a recent post of his highlights the invisible scripts that exist within the cultures of most places that buy a house for investment is perhaps the safest form of investing.

In Singapore, we can attest to this. Stocks and bonds investing will always look to be more risky and never get rich scheme compared to real estate.

Sometimes its not that you want to do something because it’s a logical and good idea, but because society forces your hand.

You don’t get married because it’s the right thing to do. You get married so that you don’t have to wait too long for a HDB flat else it gets too expensive.

Reaching 35 years old is a milestone, not because it’s a defining moment in your life, but that as a single you can buy a flat!

There are days where I absolutely admire folks that can do things differently, be it entrepreneurial, choosing a different way to build wealth or having a better goal in life and working towards it. 

This video answers a reader’s question whether she should invest in a house. I find that Ramit’s answer generally hinges on property doesn’t appreciate in value past inflation when looking from a long term perspective.

But the same can be said about equities in recent years. Not being able to outperform inflation, doesn’t mean that in the short run, folks cannot profit from it.

The other interesting thought is his consideration  of the total cost of ownership. This is something seldom talked about, but would a Singapore flat or condo geared towards being rent suffer a high maintenance expense?


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