Guy often tell me house is a force saving. By looking at the market today, full of scammer roaming around, and countless unsavoury characters and get rich quick scheme, jobless highly educated youth. I conclude buyhouse is not only a forced saving but also a save yourselves.
House price is soaring, but finance advisor telling me to debt maxxing on house loan 90% loan and 0~10% dp, and its fine. Because bank want to increase revenue, increasing house price is what the bank did, by increasing house price, guy would take more loan to buy house, that way bank can increase revenue by increasing house price and increasing the loan to buy house, then bank can charge interest on the house loan to make profit. But what I often heard is guy tell me to debt maxing on house loan, dont care about saving, its a recipe to disaster to me. So guy today hope the house price to collapse and they can shop house on the bargain, thats one wishful thinking, the bank cartel and house developer wouldnt allow that to happen, reduce house price would make it bad for bank to sell more house loan, and bad for developer too, the blackrock would stop that effort, however as usual some guy would loss everything due to greed, if over leveraged on house loan, would loss everything.
Over the last 20-30 years it is hard to find a long drop in house prices but you should really think of a house purchase as a separate category of investment. It's a place where you can live in privacy and comfort, a place which you are paying off and not paying off for someone else in the form of rent, plus many other benefits. Once it's paid off you just have to cover utilities and taxes which are minimal in comparison to the cost of purchase. There are so many advantages, but the price has steadily ticked up over time and should be thought of as an added bonus. It is highly dependent on where you live and the current situation, because many flats struggled to sell in the pandemic with no outside space to use.