I have some relatives. (who are rich AF) but not crazy rich. They have a ton of property. Both locally and overseas (eg China and Hong Kong).
Most of them are bought in the early early years like 20 - 30 years ago where property prices were not crazy and have some residual wealth from own businesses (largely alot from trading, eg steel, paper, raw materials etc) anything to fuel the crazy growth story here in South East Asia.
For property, as with any country with small and limited amount of landspace, naturally demand and supply correlates and prices go up.
Not only paper value but actual cash realised profit when the private property actually gets en-bloc (sold to new developers for redevelopment) or sold to a person who is keen to buy property as investment or staying.
P.S: Just last week I heard my mum tell me that one of my relative actually sold his home. (which he just bought last year) at a $300k profit as it was going to en-bloc, then just roll over the wealth again to grow.
Then the cycle repeats:
- Buy property
- Hold for 10 - 20 years (rent or stay)
- Sell property (take the profit)
- Buy more property (give to children and hope children dont anyhow spend or get into debt)
- Get into larger networks of rich people (and dealers, agents)
- Buy more property (locally or oversaes)
- ETC ETC
So in my mind, and actually observing it as well, the wealthy can wealthier and the divide becomes larger. (GINI coefficient in economics terms).
In today's world, such opportunities are only reserved to those with inherited wealth. We now focus on new technology and the non-obvious growth areas (eg tech, starting or joining fast growing companies) as unique opportunities not only to grow wealth but to really make a difference in our world today. So, do consider it! < I think that is one huge differentiator compared to our forefathers.
I have some relatives. (who are rich AF) but not crazy rich. They have a ton of property. Both locally and overseas (eg China and Hong Kong).
Most of them are bought in the early early years like 20 - 30 years ago where property prices were not crazy and have some residual wealth from own businesses (largely alot from trading, eg steel, paper, raw materials etc) anything to fuel the crazy growth story here in South East Asia.
For property, as with any country with small and limited amount of landspace, naturally demand and supply correlates and prices go up.
Not only paper value but actual cash realised profit when the private property actually gets en-bloc (sold to new developers for redevelopment) or sold to a person who is keen to buy property as investment or staying.
P.S: Just last week I heard my mum tell me that one of my relative actually sold his home. (which he just bought last year) at a $300k profit as it was going to en-bloc, then just roll over the wealth again to grow.
Then the cycle repeats:
So in my mind, and actually observing it as well, the wealthy can wealthier and the divide becomes larger. (GINI coefficient in economics terms).
In today's world, such opportunities are only reserved to those with inherited wealth. We now focus on new technology and the non-obvious growth areas (eg tech, starting or joining fast growing companies) as unique opportunities not only to grow wealth but to really make a difference in our world today. So, do consider it! < I think that is one huge differentiator compared to our forefathers.