It will surprise some that the technology I am referring to is not blockchain. While I am a believer that it is the technology that will obliterate the banksters, there is something else that is on the horizon that could really impact the fraudsters.
This is also a warning to those who go to banks for this service. We could see advancements in the next 10-15 years that will wipe out a serious portion of one's wealth.
Around the end of 2017, the US average debt broke down as follows:
- Credit Card $15,654
- Mortgage $173,995
- Car Loan $27,669
- Student Loan $46,597
Data Source-Nerdwallet
It should come as no surprise that mortgage debt is the highest on this list. According to the Federal Reserve, there is $10T in outstanding mortgage debt at the end of March 2018. This is a serious amount of money that is passing through the banking system.
What if that was seriously reduced? Would would happen if the numbers I listed had average mortgage debt somewhere around car loans? How would that impact things?
On the flip side, what if you are one of those people who has a mortgage and you pay it off? While the asset you have is owned, what occurs when you go to sell it? Will what you amassed be there?
Of course, with real estate, there are always market cycles to contend with. However, there is something else that is taking place which appears to be gaining traction. Technology is moving in a direction that can literally make a house follow the same path as a car. Imagine buying a house and losing $2,000 the minute you close on it? With technology, that is a possibility.
In the last couple weeks, I came across a number of companies that are really making strides in contour manufacturing. For those of you who are not familiar with that, it is another way of saying 3D printing buildings. I will state this is at the really early stages of development yet, like many other technologies, advanced a great deal in the past two years.
A company in Italy is building Europe's first one bedroom, 3D printed house. The structure is building "printed on site and is going to be 100 square meters (roughly 1200 sq ft).
In France, a house was constructed which will start to be viewed on April 7th. This 5 room structure will be inhabited in June meaning that we are not seeing something built for show, but to actually live in.
The one that takes the cherry in my opinion, at this time, is a project by the non-profit group New Story. Based in Silicon Valley, the idea is to print homes in those areas where natural disasters here.
What is exciting about this is the house can be constructed in a day and costs $4,000 to make. While on the small side, 600-800 sq ft, it shows how rapidly costs can fall when using this technology.
Peter Diamandis talks about demonetization once something goes digital. This is the case in this arena. We are looking at one of the larger industries, in terms of money, entering the digital realm. Whenever anything moves under the laws of informational technology, prices plummet.
This could be of grave concern to people down the road. In the U.S., the home is usually where the greatest percentage of wealth resides. Unless people use their residents as ATMs, over time, people amass equity in their homes. What happens when downward pricing pressures start to take hold? The house that someone spent 15 years paying off might be worth a fraction of what it was.
All the numbers mentioned here are as of now, April 2018. What will they look like in April 2025 or 2028? While an 800 sq ft structure is not appealing to most, I believe you can count on the technology advancing to be able to construct larger homes. Also, we should see the prices drop even further as more innovation occurs in this realm.
One thing I can guarantee, whatever the price of the equipment and the cost per square foot is today, it will be significantly less 7-8 years from now.
What does that do to the $10T in mortgages the banks are accustomed to writing over time? If this technology become the de facto way to builds, a $175,000 construction cost in 2030 might get you a mansion.
Do not be surprised to see home prices drop by 90% in the next 15-20 years. The might sound like a long time but if you just bought a house and have a 30 year mortgage, this might be something to consider.
Just food for thought.
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I've been seeing an emerging trend recently where people completely forgo mortgages in favor of tiny houses and mobile homes, so this 3D printing method will likely gain a lot of traction with the tech-savvy millenials and crypto users.
You pay in your favorite crypto, and you have a debt-free living space in a few days! That is the future!
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A great point @techwizardry.
I think that generation learned a bit watching the McMansion crazy of their parents. People were buying 2500+ sq foot houses, most of what went unused.
I believe that generation is more attuned to living within their means.
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And I recently read some FUD about how extremely easy it is for a tiny home to be stolen...
People will not be so easily swayed. I do home that enough people are swayed...
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Great! I knew that this would happen just from watching how building are being made, there will be no need for carpenters or builders very soon.. Yeh fuck mortgages! to see that list of what people have as debt made me puke a little :)
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Even if the building itself will cost zero, overall price of a flat in a major city will remain about the same. You paying for communications, land, bureaucracy and above all BRIBES. The price of the building is nothing in comparison. At least here in Moscow. We have insane prices, even with a poor people houses cost like its a London! And they are rising (
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I don’t know how much mortgage price around the world but most of them exist in the US.
This technology will innovate and somehow the bank will find a way to keep the world in debt.
The good part is knowledge is power, the more you know, the better you can counterpunch the system.
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This is pretty cool! I have always been against people using their homes as piggy banks and piggy banks using people as forever debt slaves because of that... purely evil vicious cycle... The main costs of owning homes are due to regulation, we should eliminate those too! Maybe put those permits, deeds, and bureacratic crap on a blockchain and get rid of the abundant blood sucking intermediaries who make no sense in today's world. I can't wait for that to happen, it will happen eventually because the advantages are too many. Regards Task
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Yes it is a rather stupid way to do things, using the home equity to buy cars, boats, and trips yet this is how Americans are conditioned to think. The marketers on Madison Avenue are experts are leveraging the entitlement mindset of people. "You deserve it after all".
The American Dream is debt up to their eyeballs.
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The price of land is often a major factor in the price of a house. While the price of construction might fall by 90% in 20 years, the price of land will not.
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That is true....although other technologies are going to enable people to build on land further away from cities...where land is more expanse and less expensive.
As other services are digitized, physicality becomes less important.
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Once the initial cost of infrastructure is out of the way, I can see this working.
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@AbuseReports
@Duplibot
@Spaminator
@SteemCleaners
@SteemFlagRewards
@Steemit-Abuse
Steemit Asshole
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Goodbye homelessness and refugee camps is what I'm hoping, the whole 3d print a house is revolutionary and could help hundreds of thousands of people live much higher quality lives.
Banks that create money out of thin air to pay for houses and then charge extra are basically criminal in my mind.
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Good point, and not a consequence I had anticipated.
Here in Australia house prices are artificially high, as the Bureau of Land Management dripfeeds new residential land into the market, keeping demand high.
The bricks and mortar are typically only a small portion of the overall cost of buying a house.
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Nice post @taskmaster, this is so informative and eye opening, technologies have always been the pivotal for world transformations and developments, this is really a food for thought.
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When I opened your post I thought you where going to speak about the power of blockchain technology to kill the banksters, but you surprised me when you talked about the debt with mortgage.
I completely agree with you, this houses are only starting too.
What I think is that people want to be free and for that having a house in the same place forces them to be in the same country all the time. For that same reason houses that have low cost will start to be adopted and this looks like a good solution.
I heard about this type of houses being built in the Netherlands, houses that float so they can have space enough for all their population.
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3D printing once considered a novelty for artists and craftspeople is now paving its way into construction.
I have read an article saying the same thing that it would revolutionize who homes are built at a fraction of the cost and time using traditional methods.
There are also how it can be deployed to build houses for natural disaster victims.
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This could have all kinds of implications. If housing prices collapse, what does that say about the ability of local governments to fund themselves via property taxes? Or the possible massive loss of construction jobs?
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Local governments are already facing that challenge from bot lawyers.
https://www.recode.net/2018/4/5/17119956/parking-ticket-property-tax-revenue
As for the loss of jobs, couple that the potential loss in driving jobs and you see how there could be a mess on our hands....something that few are really talking about.
Most want to deny that it can happen.
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I read about this not too long ago as a development for the increases in the population of the world.
It's quite interesting, to say the least, and I'm sure this is going to seriously affect the trade sector of the world. Here is an article about a $10,000 house that was built in 24 hours.
http://bgr.com/2018/03/12/3-d-printed-house-icon-sxsw/
There will still be jobs for second fix joinery work and all the maintenance and service work but it will definitely take work away from the site carpenters. Between this, AI, robotics and other future advancements, we all need to start considering what skills and professions require true authentic action if we want to strive in the future. The combo between abundant tokens, authentic skills and an irrefutable ledger for transactions will create some seriously creative pioneers going forward in this new era.
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Brazilians are in the same level of debit, the medium of debts are 8.3k of reais, almost 10 minimum wages. We have more and more people knowing about cryptos but just a few of them are investing in that because of FUD. I try my best to explain that isn't real and they don't need to put a penny to invest in cryptos, and also explain the Steemit, however I think they are sleeping now... Maybe one day they will wake up.
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Post your good broder @taskmaster
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Nice post, thanks for good sharing
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That's such a cool concept, to be able to "print" a house. What an interesting world that we live in! I don't know that housing prices will drop 90% as one of the most expensive parts of housing is the land. There is a lot of land that comes at a premium because of its location. Still, being able to build a house for even $30,000 in days is incredible. If you get some land out in the country, or somewhere cheap, you could have a livable residence for less than $100,000. That would do a lot to allowing people to have more money to save!
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3D printing technology will be the front-runner for decentralization of the physical world. I've always wanted to invest in this area but I've never had any money 😝
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There is also technology that turns plastic waste into walls and insulation.
It’s not the price of the house that makes it so expensive, it’s the land it sits on. (At least here in California).
These buildings aren’t built so expensively yet they go for hundreds of thousands of dollars.
I still hope you are right.
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waitting for other black Thursday
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Government will put roadblocks in all over the place to avoid the adoption of this. Precisely because there will be less money floating around. I promise you though if I had the option of buying a 3-D printed/constructed house over the brick and mortar place I have now, I would have done it and saved myself -- I dunno, maybe 70 grand! I hope private firms start using this technology more and more. They might make less up front -- but they people will literally go to them for help and they will have so much business, they won't know what do with it!
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Interesting. Now they are printing bridges too: https://gizmodo.com/the-first-3d-printed-steel-bridge-looks-like-it-broke-o-1824252512
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