Since the dawn of time, our ancestors travelled wherever the animals went. Over time, they abandoned the hunter-gatherer lifestyle and transitioned into an agrarian society. During this period, the concept of home ownership was born. So read on as we dive further into the history of property investment.
Agrarian systems allowed the strongest in that era to claim fertile lands as long as they were able to defend it. As time passed, the tribal leader system was developed which allowed the leaders to approve the distribution of land. The concept of tribal leaders evolved leading to more powerful leaders who were on the same level as your present-day CEO.
Several irrigation channels were then made followed by strongholds, temples and improved methods of farming. This soon led to population explosion since farmers could now provide for a bigger household. Bigger households also meant that there was a larger population to defend the lands from any desperate raiders who came their way. Thus a sense of security was born from safety in numbers.
However, to show gratitude for security, people paid homage to the king who owned the land. In essence, this was the first historical claim of paying rent. Small farming villages later became new and upcoming cities. These cities were maintained by people who were directly related to the very first owners who were pharaohs, kings, sundry heads, and various other dynasties.
During the reign of kings and queens, two systems were formed; these being tenancy and taxes. However, the royals usually shared their wealth with friends and families by being generous enough to sign away land deeds and titles. In doing so, the new owners could now collect rent by all of those who lived on their property. In addition to paying rent, they were also required to pay some form of tax.
Peasants continued to earn a living through several skills which later brought about non-agrarian houses and shops. This led the commoners to opportunities where they could eventually buy, sell and rent amongst their own selves. However, there were also richer merchants who began to gain more status and wealth from being the first-ever landlords. While they didn’t own the land, they owned the houses built on them.
Putative meritocracies replaced the former aristocrats and served for the good of all. This led to politics, and land titles were broken up into smaller parcels. They were later sold in the markets and bought by the people who had enough money to purchase them.
Due to the industrial revolution, people began to learn new skills such as carpentry, sewing and others. Those filled with ambition were able to climb the ladders of society and bring along their friends. This led to the division according to white collars, blue collars and the middle class. Soon after they were the proud owners of cars, houses, television and anything else that they desired.
As we conclude, we have just looked at the history of property investment. After the revolution was over, the wealth of the world increased and banks now allowed high-risk mortgages. This was the stepping stone for people to not only own their own homes but become landlords. Don’t forget to practice some control because a pretty large mortgage can easily be the reason why you lose your home.