What is, this paragraph is indeed a true reflection of our lives. Now you do not have a loan to buy a house and car, are embarrassed to open with friends to say that career success. No mortgage car loan, in the eyes of the bank is a poor loser, to give you approved a credit card is to play some sympathy points. I'm not sure if you're going to be able to get a good deal on this, but I'm sure you're going to be able to get a good deal on this, and I'm sure you're going to be able to get a good deal on this.
But then I thought about it a little more carefully, and something didn't seem right. Doesn't pricing someone out of debt run counter to the nature of wealth? If one can merit wealth by being in debt, then wouldn't a person become the richest person in the world just by continually taking on debt?
But this is something that defies common sense, and it's happening all around us every second. It's the same with debt, but it's the same with a lot of people.
Borrowing from China's real estate wealth creation movement in the past few years, China's middle class is getting bigger and bigger. There are all kinds of middle class standards circulating on the Internet, but I think the most simple and crude one is "have a house and a car", because only by crossing these two thresholds, Chinese people feel a little bit of "middle class" face, who called us in the "The first thing you need to do is to get a good deal of money to buy a car.
The question is, are these middle-class people happy? In fact, the "law of two or eight" can be answered: 20% of the face to rely on 80% of the debt to support.
"Usually wear Uniqlo, mortgage to buy a house, mortgage to buy a car, the whole family ate 7-11 fast food, or takeout to solve the problem, and occasionally swipe the credit card to eat Japanese and Thai food, a year to buy one or two brand-name bags, the sun once travel photos." Is there any point to poke you ah?
The best-selling full-length novel Anxious Middle Class tells a true story:
The author is also a post-80s, in fact, there are many such examples around me, the position is getting higher and higher and the income is getting more and more, but it is constantly caught in the financial vortex, and the happiness is getting lower and lower. What exactly is the reason for this paradox?
Class solidification, in the view of the bottom people is social injustice, while in the view of the upper class is social stability. The truth is often so cruel!
Ten years of the golden period of the property market gave many people at the bottom of the unexpected class promotion opportunities, and this ticket is the "mortgage".
Nowadays, the house has become a national belief, "no house, will fall into the bottom", although we also hate this distorted reality, but can only accept.
Many people have to pour out the savings of three generations to buy a house in the city and settle down. It's hard to make a down payment, but you're being pushed down by the mortgage. According to statistics, a family in China has to carry an average of 2-3 million dollars in mortgage payments. Monthly payments, down payment debts, home appliances, furniture, decoration and so on, in the first one or two years, enough to put an original rich middle-class family drained.
That's when an alternative middle class was born - the "highly indebted middle class", referring to the subclass of people who are weighed down by loans, who have assets but aren't well-off, and who rely on real estate appreciation to get ahead, mainly concentrated in the first-tier and second-tier cities.
The heavy mortgage has become the biggest problem for these middle-class people. "A set of houses eliminates a middle-class family" is not just a joke. A series of social security such as education, healthcare and pension have not been significantly improved by the high tax payments of the middle class. The pseudo-happy life of the middle class, under the low welfare and low security, seems very "fragile", trapped in the widespread insecurity, dare not have more children, and dare not lose their jobs.
Crossing the class divide and accomplishing the class leap is a systematic project and a huge challenge, so why is it that some people have become rich and wealthy by buying a house and accumulating tens of millions of dollars of net worth?
A mortgage is different from a typical liability. A mortgage buys a house, and a house can bring investment income, so we have to calculate the difference between the investment income and the interest on the liability.
In fact, you just need to master a formula:
so that you can constantly get a positive cash flow. In a nutshell, the investment return is greater than the interest expense.
So we can expand on this by categorizing debt as either benign or malignant.
For example, if you took out a loan to buy a house before 2016, you can say that it is a benign debt. In 2016, China's housing prices doubled, and the gains from the rise in housing prices far exceeded the interest on the mortgage, and your wealth increased as a result.
By 2017, housing prices were at an all-time high, the state tightened its control over real estate, and if you take out a loan to buy a house at this time, not only is the down payment very high, but also the mortgage rate floats resulting in a big increase in interest expenses. If house prices eventually fall instead of rise, you instead have to bear the double loss of increased mortgage interest and falling house prices, your wealth will quickly shrink. Then such a mortgage is a vicious debt . This is what I have repeatedly reminded everyone in the article, 2017 is no longer suitable for ordinary people to speculate on real estate.
So, if you want to buy a house to successfully promote the middle class, but also want to live a good day of petty cash, how to correctly debt?
Besides the down payment, the thing that most affects our quality of life is the monthly mortgage payment. The first thing you need to do is to make sure that you're paying off your mortgage, and that you're paying it off in a way that's reasonable for you to pay it off.
If you're married, and you and your significant other make $20,000 in total after-tax salary, your monthly mortgage payment will typically be within $7,000, up to a maximum of $8,000 per month. If you go any higher, it's likely that your quality of life will be affected, and you'll be broke and broke before you even make it to pay off your mortgage.
The scenery of the distant middle-class society is very beautiful, but don't forget, how many house slaves are carrying the weight forward! You, have you succeeded in surpassing it?