My general advice to young people is to avoid contributing to society, because the terms are just not fair towards you. You pay for pensions you’ll never receive yourself and you’re left to inherit a world that is rapidly becoming uninhabitable. The elderly have collectively chosen to be in denial about this problem and how they rigged the game in favor of themselves at the cost of you, so my advice has to be not to participate in the game they expect you to play. The reason young men without wealthy parents waste their time on cryptocurrency is because they wish to escape having to participate in a system that is rigged against them. They see no other option.
You’ll find the rigging of the game goes on everywhere, if you bother to look for it. But today I just feel like illustrating an example. Take a look at this house in Schiedam:
The house is on the market for 130k, even though it’s valued at 171k by the government. Unless it’s occupied by someone who is about to die however, you have to be a complete idiot to buy it. The reason for that is simple: There’s a renter.
You might imagine that’s fine, as it means you receive rent as a return on your investment. But here’s the thing: The total rent income amounts to €3225,60 a year. That’s €268,80 a month. This means your return on investment would be 2.5% a year, if you had zero costs for your renter. Real estate prices will go down for years to come, so you can expect no returns from there either. It is by all means a terrible investment for anyone dumb enough to buy the place.
Now have a look with me, at the cheapest place you could currently sign up to rent in the town:
The renthog is paying about 25% of what you would expect to pay for rent in a house like this.
How does that happen?
Well allow me to show you the Dutch laws on rent. This year, rent can be increased at a maximum of 2.3% for existing renters, even with inflation at 14%. If you’ve been renting the same house for thirty years or so, this is the scam you’ve pulled off for the past thirty years: Your rent increase is limited, even though prices for new renters keep going up.
There’s the problem. When the elderly bought a house thirty or forty years ago they made a terrific investment, as real estate values exploded. If the elderly rent a house, then they manage to avoid paying any significant amount of rent in this country. For young people, this means you’re left with one of two options:
-Go to work everyday, to hand over about 50% of your after-tax income to an elderly landlord.
-Sign up for a massive mortgage, to hand over a massive amount of money to the elderly people who sold the house to you.
There’s the thing. It’s almost cliche to complain about how much real estate prices have gone up since the babyboomers bought their houses. But what everyone tends to ignore, is how the same scheme worked out for renting babyboomers. They’re paying 250 euro a month in rent, for a house you would pay 1000 euro for today.
You have to be a complete lazy idiot as an elderly person in the Netherlands to live in poverty, because at every step along the way the government insulated you from having to participate in the real economy. Affordable real estate was fixed for you, jobs you can do without a college degree were arranged for you, pensions were arranged for you, the government now even insists on paying your heating bills for you. If you didn’t want to work the government would even help arrange that for you too, a lot of working class Dutch elderly just retired in their fifties back in the 90’s.
If you were to buy this house as an investment object, your only realistic way to see a return on investment would be to bully the current occupant into leaving the house.
Many Dutch elderly live in big houses and against all expectations they refuse to leave those houses for smaller assisted living facilities. But the reason should be obvious: When you’re paying 250 euro a month for a house that would cost young people at least 1000 euro a month, you would have to be a complete idiot to sign up for something smaller that would be more expensive.
The solution should be obvious: Allow a faster increase in rent for these elderly who had the whole system rigged in their favor for them. But nobody would vote for that and most young people are too stupid to realize this is in their own interest because the elderly rigged the game in their own favor for decades. People would hear “they want to hike rents for the poorest people in the middle of an economic crisis!” and approval ratings would plunge, because most people are just complete idiots.
We live in the worst of both worlds, where we have DDR style socialism for the elderly and Hong Kong style hypercapitalism for the young and the 1%. Rather than addressing the problem we have, which is that the elderly simply own and occupy too much space, the Dutch public and our government like to think the solution is to build more houses.
This sounds nice in theory, but it doesn’t work because we simply don’t have the space for it. A house is an investment that takes decades to pay off. Our country is overpopulated, so most proper places to build houses are already occupied. What happens now is that we construct houses in places where sea level rise will eventually make those houses worthless, as they will become subject to recurring floods. These are the houses that young people get to purchase today.
And yet, the whole housing shortage would be easy to solve, if you would simply acknowledge the simple fact that old people own and occupy too much physical space. About 400,000 people in this country now own a second house. How many new houses does the country need? About 400,000! Sure, not all these houses will be in the correct location, but the problem should be obvious. The housing shortage is little more than an artifact of mass immigration and the growing concentration of wealth in the hands of the elderly.
If you want an industrialized nation’s population to go extinct, it’s pretty easy to accomplish: Distribute scarce resources away from reproductive-age humans, towards post-reproductive age humans. Here you can see the average value of houses by homeowner age category in the Netherlands:
You can see that up to 25 years, people live in houses worth 250k on average, then up to 35 years in houses worth 300k, then by the time we reach people beyond the age of menopause, we’re looking at 400k on average. Now tell me, what sort of house would you feel eager to reproduce in?
A two-room 250k apartment without a garden, or a 400k house with a garden and a room where a child could sleep? Young people literally don’t even have the physical space anymore for a child, because boomers occupy such houses and fill the empty rooms they don’t use with junk. It’s a solipsistic generation that has zero intent on leaving anything behind for future generations to enjoy, not even a habitable planet.