10 Things Rich People Do That You Don’t

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9Buy Affordable Property

Fundamentally, rich people pay cash for their homes or have at least a fifteen percent deposit. And rich people tend to buy properties no more than two-and-a-half times their annual after-tax income. Rich people also tend to buy older pre-war homes and it is very rare for the affluent to buy a brand new home or have a home built. This probably stems from the psychology of the rich in which a high value is placed on quality (which was undoubtedly higher in the past) and not wanting to carry the initial depreciation of new goods (see item 10).

It is not the truly affluent people buying McMansions and multi-million dollar show homes. Those properties are for people with massive mortgages, massive egos, and massive financial problems. And, of course, the few amongst us who have won the lottery (poor them—most lottery winners waste it all and end up back where they were but far more miserable for the loss).

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