Canada’s Real Estate Market Is a Giant Pyramid Scheme

Re:Canada’s Real Estate Market Is a Giant Pyramid Scheme by ameminator on Tuesday February 22, 2022 @03:43PM (#30433468)

It's possible to have conviction but recognize the possibility being wrong or that outside events can have an impact. With financial instruments, it's also possible to run into market-timing issues and outsized risk to reward.

On the other hand, it's easy to bet on hard assets (like real estate) and taking on debt when inflation is so high and rates are so low. It has the added benefit of not being sophisticated, requiring neither a finance nor an accounting degree.

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Re:Canada’s Real Estate Market Is a Giant Pyramid Scheme by RC_ITR on Tuesday February 22, 2022 @06:39PM (#30435440)

Conviction is literally 'firmly holding a belief or opinion.' If you firmly believe that currency is collapsing and your response is to buy a home, then you're leaving a bunch of money on the table and potentially not profiting from that at all.

If you think that interest rates are low and housing has a lot of reasons to inflate going forward, then I think we agree you're acting rationally, but that has almost nothing to do with 'currency collapse.'

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