It's a long standing scenario that houses are normally built for a lot cheaper than what they're sold for (I'd say its particularly in the UK and the nordics but the US might have a higher margin if they live in wooden houses). I've seen it be complained about a lot online even before now.
If you got a social housing system where people put money into the workers to develop a skill related to building houses and they started doing that, they'd stand to gain a very high profit from it. The problem is that most property construction is dominated by a few industries and banks and the people who have skills can already build their houses cheaply.
Also, you can buy fractions of bitcoin, you don't have to buy a whole one and if you don't know what you're doing, a bitcoin investment is the best place to put your money while you learn (aside from diversifying into stocks too so you can buy more bitcoin if it drops - or at least not panic sell your bitcoin).
Topic: The Impact of the Capitalist System on People's Economic Practices, Really? - page 2. (Read 288 times)
September 12, 2022, 02:06:44 PM
September 12, 2022, 12:56:46 PM
The capitalist economic system is a system in which private business actors own and control property according to their interests. An important factor of the capitalist economic system is the profit motive according to Adam Smith's theory. In his book entitled "Wealth of Nation", he explains the concept of laissez faire and the principles of the invisible hand.
These two concepts are the basic framework for the formation of the capitalist system theory, which includes the value of goods and services, structure, consumption prices, and production prices. There is a shortage in the capitalist economic system, because their goal is not to see the impact of consumers, but rather to the value of profits from the products and services issued. Thus it seems that the capitalist style will destroy the order of life of the little people, in making purchases, be it products or services.
Let's see how they work, in the area where I live, currently intensively promoting various types of houses, where they work with banks as third parties. However, in this case, the Bank is authorized to determine the prospective buyer, based on consideration of the criteria, employment status and agreed terms. However, it must be understood that Real Estate is different from Real Property, both which can involve the government in its management and those related to financing and settlement as building ownership.
Terms and Rough Figures For the Purchase of a Single House
1. Time period
This relates to the time period agreed upon by both parties (the Buyer of the House and the Bank), the longer the agreed year, the greater the profit received by the third party.
Because the buyer will continue to deposit every month according to the current year's agreement.
2. Advances
The amount of the down payment that must be deposited depends on the agreement between the home buyer and a third party (bank), taking into account the conditions they provide, the smaller the down payment, the greater the monthly deposit.
3. Monthly Installment
Installments determine the price of the house, because the smaller the agreed monthly installments, the longer the ratio of the specified repayment period, so the more expensive the house price.
Let's count?
20 Years X 12 Months = 240 Months
1 Month Deposit $134.26 X 240 Months =$32,221.25
Down Payment $5,370.21 + 240 months Deposit $32.221.25 = $37,591.46
Total for one house $37,591.46
In fact, if we buy land and build our own house, without using their system, the money we need is about $16,781.90
So, if the term of the agreement is long (Current Year), then the third party will automatically benefit $20,809.56, because the monthly deposit will run according to the year and the agreed down payment.
This is an example I got in the field, a few weeks ago?
Actually, I have conveyed this example earlier in this post Why the european housing market is about to crash, But because I think this is interesting, then I try to recreate my post?
This looks pretty crazy, the way they rob people of financial freedom, where for a need (a house), people have to spend that much money and not to mention talking about monthly deposits during the agreed-upon agreement. Of course, the consumer has the authority to buy or not, but if it is considered a house is a necessity, what can they do?
In the context of Economics, there is nothing wrong with this capitalist system. But there should be other ways that can be done to not be burdened by the system, so that people are not trapped in something that is not necessarily capable of being done.
Now I want to combine buying a house using this system, with investing in crypto and bitcoin. Maybe this can be a reference, especially for those of us who are in this forum. If people currently choose to buy a house, then they have to make a down payment of $5.390,11 as a condition and they continue to deposit a monthly fee of $134,75 for the current period (20 years).
Just imagine, if we invest $5.390,11 in bitcoin or in altcoins, if the return on investment is maximum and we do it at the right time, then to make one house no more than 1, 2 or 3 years running time, without having to wait for repayment annual fees that run according to the agreement. Of course, the investments that we make also have the impact of risks and losses, if someone does not understand the pattern and the right time to enter the market, this problem is related to knowledge, which may be learned before starting an investment.
But that doesn't mean the risks are unavoidable. Because there are many things we can learn before starting, be it investment knowledge, strategies and how to enter the market at the right time. Because what I see, the pattern of buying a house that they do, is no less than the danger posed by investment, meaning that both processes have the same risk, only in different conditions and portions. Oddly enough to understand, if we want to get involved in such a home buying system, despite the opportunity for change, we can do so through investment.
Whereas in Crypto systems in general we are used to determining the direction of freedom we want to do. Instead I think, cryptocurrencies are a way out of a problem they can't solve, towards housing needs for low-income people. By making the right investments, we will save ourselves from problems that are considered incapable of becoming easier. Technology that has developed, will pave the way for everyone who wants to learn to do something new.
Why did I mention cryptocurrency and not specifically Bitcoin, because the concept is more accessible to the lower classes, because talking about cryptocurrencies in general, it has a cheap purchase value, but the return at a certain time is quite maximum.
Capitalist Illustration Image
These two concepts are the basic framework for the formation of the capitalist system theory, which includes the value of goods and services, structure, consumption prices, and production prices. There is a shortage in the capitalist economic system, because their goal is not to see the impact of consumers, but rather to the value of profits from the products and services issued. Thus it seems that the capitalist style will destroy the order of life of the little people, in making purchases, be it products or services.
Let's see how they work, in the area where I live, currently intensively promoting various types of houses, where they work with banks as third parties. However, in this case, the Bank is authorized to determine the prospective buyer, based on consideration of the criteria, employment status and agreed terms. However, it must be understood that Real Estate is different from Real Property, both which can involve the government in its management and those related to financing and settlement as building ownership.
Terms and Rough Figures For the Purchase of a Single House
1. Time period
This relates to the time period agreed upon by both parties (the Buyer of the House and the Bank), the longer the agreed year, the greater the profit received by the third party.
Because the buyer will continue to deposit every month according to the current year's agreement.
2. Advances
The amount of the down payment that must be deposited depends on the agreement between the home buyer and a third party (bank), taking into account the conditions they provide, the smaller the down payment, the greater the monthly deposit.
3. Monthly Installment
Installments determine the price of the house, because the smaller the agreed monthly installments, the longer the ratio of the specified repayment period, so the more expensive the house price.
- Term of 20 years
- Down Payment $5,370.21
- Monthly Installment Ratio $134.26
Let's count?
20 Years X 12 Months = 240 Months
1 Month Deposit $134.26 X 240 Months =$32,221.25
Down Payment $5,370.21 + 240 months Deposit $32.221.25 = $37,591.46
Total for one house $37,591.46
In fact, if we buy land and build our own house, without using their system, the money we need is about $16,781.90
So, if the term of the agreement is long (Current Year), then the third party will automatically benefit $20,809.56, because the monthly deposit will run according to the year and the agreed down payment.
This is an example I got in the field, a few weeks ago?
Actually, I have conveyed this example earlier in this post Why the european housing market is about to crash, But because I think this is interesting, then I try to recreate my post?
This looks pretty crazy, the way they rob people of financial freedom, where for a need (a house), people have to spend that much money and not to mention talking about monthly deposits during the agreed-upon agreement. Of course, the consumer has the authority to buy or not, but if it is considered a house is a necessity, what can they do?
In the context of Economics, there is nothing wrong with this capitalist system. But there should be other ways that can be done to not be burdened by the system, so that people are not trapped in something that is not necessarily capable of being done.
Now I want to combine buying a house using this system, with investing in crypto and bitcoin. Maybe this can be a reference, especially for those of us who are in this forum. If people currently choose to buy a house, then they have to make a down payment of $5.390,11 as a condition and they continue to deposit a monthly fee of $134,75 for the current period (20 years).
Just imagine, if we invest $5.390,11 in bitcoin or in altcoins, if the return on investment is maximum and we do it at the right time, then to make one house no more than 1, 2 or 3 years running time, without having to wait for repayment annual fees that run according to the agreement. Of course, the investments that we make also have the impact of risks and losses, if someone does not understand the pattern and the right time to enter the market, this problem is related to knowledge, which may be learned before starting an investment.
But that doesn't mean the risks are unavoidable. Because there are many things we can learn before starting, be it investment knowledge, strategies and how to enter the market at the right time. Because what I see, the pattern of buying a house that they do, is no less than the danger posed by investment, meaning that both processes have the same risk, only in different conditions and portions. Oddly enough to understand, if we want to get involved in such a home buying system, despite the opportunity for change, we can do so through investment.
Whereas in Crypto systems in general we are used to determining the direction of freedom we want to do. Instead I think, cryptocurrencies are a way out of a problem they can't solve, towards housing needs for low-income people. By making the right investments, we will save ourselves from problems that are considered incapable of becoming easier. Technology that has developed, will pave the way for everyone who wants to learn to do something new.
Why did I mention cryptocurrency and not specifically Bitcoin, because the concept is more accessible to the lower classes, because talking about cryptocurrencies in general, it has a cheap purchase value, but the return at a certain time is quite maximum.
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