I noticed the same hook for selling houses as I hear in selling timeshares.
The sales pitch goes like this.
1. How much do you travel/pay rent?
(Standard answer : every year, every month)
2. How much are you currently spending?
(Standard answer : At least $1 a trip, at least $500 in rent)
3. How much longer will you be doing this?
(Standard answers: as long as I can, at least 10 years/ as long as I live or until I own a house)
4. OK, so for the next 10 years, let's see how much you'll be spending!
(They take answers from 1. & 2. and multiply it for the appropriate amount)
Up to now, they're already assuming you will always do what you do, no change.
Here's the BIG FALLACY.
5. Ok, don't you think in 5 years and longer, inflation will increase?
Answer is usually : YES
6. Ok, so isn't it reasonable to buy your house today or timeshare today, so you'll own it later and save money?
The fallacy is here : the fear of inflation (not hyperinflation, just steady natural inflation)
(please correct me if you can)
My answer:
a) IF inflation goes up and makes prices of housing, rent, travel go up with it, I DON'T CARE.
b) Because either my wages go up with it (and it won't matter) or my wages don't keep up (and if my wages DON'T keep up with inflation, demand for housing & travel will DROP as it is happening today)
c) Why should I pay up front or loan upfront at a ridiculous price I can't promise myself to pay back? (Forget interest!)
d) Why should I buy today just because I don't think I can afford it later?
e) Not traveling and not living in a nice house is not the end of the world, nice try on scaring and threatening me.
f) Seriously though, how much money am I paying today, and in the next 5 years to travel and live in the same place, and to save HOW MUCH?
Does my analysis make sense?
Does the sales pitch "But if you don't own a timeshare or house you'll just keep paying and own nothing!" sound a bit funny?
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