UP’s Advice: Don’t Buy a Car or House Before 35? The Reason Will Shock You!

CNBC AI News, July 20th – A viral debate is brewing on Weibo today, sparked by the hashtag #AdviceAgainstBuyingCarsAndHousesBefore35.

The origin? A video from a content creator suggesting millennials and Gen Z postpone major purchases until their mid-thirties.

The argument centers around the perceived diminished returns in real estate. The influencer proposes that renting allows young people to avoid unnecessary consumerism and accumulate savings. Avoid car ownership, with the justification of high insurance costs offsetting any fuel savings from EVs, coupled with rapid depreciation.

The prescribed alternative? Invest those savings in the stock market, betting on long-term growth to potentially amass a nest egg of one to two million yuan over a decade or more.

“Live it up with whatever’s left over! Go on trips, eat good food, prioritize experiences,” the influencer advises. The accumulated wealth can then be used for a down payment on a home or to fund an entrepreneurial venture around age 35. This financial cushion also provides a safety net in case of job displacement.

However, this advice is not without its detractors. Renowned automotive blogger Chen Zhen counters, “While a large apartment might be optional, a car, if affordable, can significantly broaden one’s horizons and social circle.” The suggestion that freedom and experiences cannot be fully realized without personal transportation.

Fellow auto enthusiast “Er Shixiong” voiced his bewilderment, stating, “I’m a bit lost, but also quite shocked.”

He acknowledged the current downturn in the real estate market as a valid reason to delay homeownership.

But takes issue with the anti-car stance. Questioning the logic that EV insurance negates the benefits of cheaper running costs, arguing that the insurance on his high-performance SU7 Ultra EV works out to approximately 23 yuan a day. “Where are you going to get with 23 yuan in a taxi?”

Further challenging the narrative, he questioned if “maximizing experiences” involves waiting in lengthy taxi queues with a partner and children during peak hours.

The debate underscores the complex financial pressures facing young adults today, balancing immediate gratification with long-term financial security. The central question remains: is it possible to have your cake and eat it too, or are sacrifices necessary to build a sustainable future?