Things Rich People Do That You Don’t

Buy 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).