End of the Nomad. Why Real Estate is Tied to Evolution.
“If history could teach us anything, it would be that private property is inextricably linked with civilization.” – Ludwig von Mises
Imagine our hunter-gatherer ancestors whose lifestyle transitioned into an “agragarian” society between 30,000 BC to 15,000 BC. Fertile land made harvesting food and shelter materials much easier, and this land was quickly staked by the very earliest of real estate “owners”. This land was critical to the survival of tribes, so a tribal leadership including leadership and military was established to protect it. A feudal system of tribal ruling was set into place whereby leaders would require a payment of some kind to the tribal leader in return for land disbursement and dispute resolutions – which were often in favor of the feudal leaders. Hierarchies within feudal “governments” were born to ensure that there were enough labour and protection for the land. This led to communities being born as larger groups of families were now settling together, rather than leading a more nomadic lifestyle. As feudalism transitioned from a ruling class land ownership to an even more capitalistic one, large parcels of land were broken into pieces and sold off to merchants or aristocrats. Peasants were still the earliest “tenants” and continued to hold little or no real estate for some time to come.
Did you know that mortgages were defined as being an exclusive loan given solely to nobility? Many of us today who have a mortgage on our home would not consider it exclusive, especially homeowners in the US who saw their mortgage notes SOLD to different companies during the recession in the late 2000’s! As the world developed more technology and machines were created to help maintain the farm land, peasants gained some education and developed skilled trades that new labor markets saw available due to technology. Still, many peasants continued to earn wages through agricultural endeavors. This changing period of time saw the creation of “blue collar” jobs – such as machinists, welders, etc.
Today, home ownership is less about your “nobility” and more about your credit score and earning ability. Subprime mortgages targeted the least savvy home owner in the United States and resulted in countless foreclosures. Canada was wise to avoid these types of mortgages and took steps to ensure a more balanced real estate market during the recession. With interest rates remaining low, and housing sales still busy, our feudal (whoops – I mean federal) government has begun to implement changes to lending requirements to ensure that real estate does remain stable. In cities such as Toronto and Vancouver, prices have skyrocketed and the issue of foreign buyers buying up homes for astronomical prices seems to be continually discussed. It will be interesting to see what will happen in 2017.
If you have any questions about the real estate market for Nanaimo or Vancouver Island, give our team a call today at 250-751-1223 or email us at firstname.lastname@example.org. It would be our pleasure to assist you with your buying and selling needs.
Brian & Myles McCullough and Kiel Lukaniuk