Buying a house with a loan is cost-effective based on China's long-term inflation. In inflation, prices are rising, so saving money is worthless. People must spend all the money they earn as much as possible, even tomorrow's money. This is the way to maximize value. Give a chestnut and buy a house. This year's house 100 yuan, next year's house in 200 yuan. If you save money until next year, you can't afford to buy a house if you save enough 100 yuan, because the house has gone up. But if you take out a loan of 100 and buy this year first, then you only need to pay part of the interest next year, and 1 10 can own a house in 200 yuan.
In inflation, income is increasing year by year, and prices are also rising year by year, so it is cost-effective to spend in advance. But this premise is that you can pay back the money. If you don't pay back the money, the house will be taken away and you will have to pay interest, which is not cost-effective.
In inflation, you can't afford to buy a house even if you save money all your life. Because the purchasing power of your money is declining every year.
Therefore, as long as the main theme of China remains unchanged, borrowing money for consumption is always cost-effective. Need to be alert to two risks:
1. After excessive inflation, it will cause stagflation, that is, prices will rise too fast and collapse. Stagflation will occur at this time. The danger of stagflation is that you will lose your job, you will have no job and no source of income, your house will not be able to repay the loan, and finally the house will be taken away.
2. Long-term deflation. Contrary to inflation, the country stopped printing banknotes and began to recycle them. Reduced market liquidity, resulting in no money in the market. At this time, the interest on borrowing money will be high, and prices will continue to fall. If you save 100 yuan today, you can buy 200 yuan tomorrow. At this time, everyone will choose to save money instead of spending. Then, when the whole price goes down, the house price will also go down, and it will appear that you buy a house of 100 yuan today, and you only need 50 yuan to buy it tomorrow, so it is not worthwhile for you to buy it early. Note that this is long-term deflation, and short-term deflation has no effect on house prices, because houses are long-term products. As long as the main theme of inflation remains unchanged, short-term price fluctuations will not affect housing prices, even if they fall, they will rise back.
Finally, the above two situations are extreme, which are not in line with the actual situation in China. China has strong foreign exchange reserves and regulatory capacity as the foundation, and it is unlikely to experience stagflation or long-term deflation. So I judge that inflation is a long-term state of China in the future, and it is cost-effective to borrow money to buy a house. It is not only a loan to buy a house, but also a loan to open a company to buy a mobile phone. Even if you borrow money for charity, it is cost-effective to borrow money for anything, because your income will increase in the future, and it is not a problem to pay back the money.
But don't borrow too much, far beyond your actual ability, and finally the assets are auctioned, which is not cost-effective.