I have recently been thinking about how young people in the cryptocurrency world, like little shrimp 🍤, have become quite wealthy but are unwilling to buy houses. In fact, they are quite rational, and it's not just properties in Tokyo; real estate worldwide is generally a poor asset.

The biggest appeal of real estate is that when you don't have much money, regardless of what asset you invest in, what you actually lack is more principal. Real estate can leverage mismatched personal capabilities to bet on a one-sided gamble, a.k.a. fraudulent loans.

After all, first, no financial institution will give you a loan of 10 million at 3% interest to buy cryptocurrencies, and second, to be eligible for a loan of 10 million, you need to have a compliant monthly income of 100,000, and I dare say that 60% and above are compliant but fake documents.

However, the quality of the asset itself is actually quite poor. Those who have played with NFTs understand that the next level of liquidity, control, transaction costs, and maintenance costs are all quite terrible. The benefit is that the win rate on the right side is not low because it is harder to initiate; once it starts, like a train engine, it is hard to stop immediately. Don't buy until it rises 10% for the first time.

As the asset scale increases, the quality of real estate assets will deteriorate further, because maintaining the leverage ratio for buying luxury homes is very difficult. Taking out a loan of 50 million for a penthouse is extremely challenging.

Another idea is the landlord renting out to offset the mortgage. If you go to high rental yield areas like the Midwest of the United States to implement the BRRR strategy, firstly, the maintenance costs are incredibly high; do something that matches your status, and don't spend every day painting and renovating yourself. Secondly, although it's rent offsetting the mortgage, the population growth is not great, and the price increases are quite limited. Even we cryptocurrency folks can easily outperform those landlords who are struggling to paint walls and lay floors.

The only utility may be to solidify a portion of assets to prevent falling back into poverty. Little shrimp’s approach of pairing stocks serves a similar purpose, but I don't really understand the leveraging of stocks.