If you have one million dollars to buy a house in the United States, would you choose to buy a mountain-view villa in the suburbs or a condominium in the city center? We have all read the book "Rich Dad Poor Dad," which contains a basic logic: if you buy a condo, it is an investment, but if you buy a mansion, it turns into a liability. However, I am saying now that you must buy a mansion because the investment logic of the past will no longer apply in the era of artificial intelligence.
Because in the past hundred years of industrialized mass production, labor created value. The more people there are, the more wealth there is, and workers are also consumers, making providing for the ordinary worker the best investment. If you buy a condominium, your target customers are the working class.
But for a long-term investment, you need to see what the world will be like in 20 years. In the era of artificial intelligence, machines replace labor, the world's population sharply decreases, and job opportunities become increasingly scarce, causing workers to lose their purchasing power. If you provide affordable housing, then you are doing welfare.
So, it's still better to buy a holiday home. Holiday homes are larger and come with more land, and you can rent them to wealthy, leisurely travelers. The benefits are twofold: 1. You can recoup your investment quickly before the value of your buildings completely depreciates, and 2. The land you own will appreciate in value over the long term.
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