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Real Estate, Fordism, and the State: A Modern Perspective

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Introduction

Hey everyone! I’ve been thinking a lot this week about some fascinating topics I wanted to share with you. I’ve been drawing from many different sources of information, and in my personal life, I’ve been contemplating the idea of owning real estate—having a place that’s truly “mine.” But is it really mine?

We recently saw the impact of digital payment systems like Pix in Brazil, and this made me wonder: Is it worth sacrificing the best years of my life (when I have energy, strength, health, and earn good money) to commit to a 30-year debt? Let’s dive into this analysis.

Fordlandia: An Industrial Utopia?

In the early 20th century, Ford Motor Company experienced explosive growth, driven by mass production of the Model T. This expansion created enormous demand for labor, leading Henry Ford to conceive an innovative solution: Fordlandia.

More than just a housing development, Fordlandia was a planned city built by Ford with the objective of housing workers and their families. The idea was to create a model community featuring:

  • Quality housing
  • Schools and hospitals
  • Recreation areas
  • Community spaces

All of this was designed under the influence of the company’s values and principles.

The Genius of the Strategy

The concept was brilliant: you develop houses, schools, and a community near the factory, allowing you to keep workers there for many years. This approach enabled companies to:

  1. Attract top talent
  2. Retain skilled workers
  3. Reduce turnover costs
  4. Build company loyalty

Impact of Corporate Housing Strategies

Advantages

Adopting these strategies significantly improved workers’ quality of life by providing:

  • Dignified housing
  • Proximity to workplace (no long commutes)
  • Strong sense of community and belonging
  • Stable family environment

Disadvantages

However, several negative effects also emerged:

  • Control and surveillance of private life
  • Company-imposed restrictions
  • Standardization and loss of individuality
  • Complete dependence on the company

The Biblical Perspective: A Life of Movement

Recently, I decided to read the Bible again. When you read it in its entirety, you notice that constantly, story after story, God commands His people to move. Obviously, there’s a lot of context here, but every time His people faced a threat or needed to grow, God and His guidance would cause a particular biblical character to leave their land and migrate to another.

This was very common in those times. Looking even further back, we can see in Yuval Harari’s book “Sapiens” that we are, by nature, hunter-gatherers. Back then, we had little technology and weren’t the strongest species. What we had was the ability to move and collect as much different food as possible before some predator, nightfall, or rain came to threaten us.

It was only because we’ve always been pilgrims that we managed to populate and survive in all four corners of the world.

Fordism Ended, But Left Its Mark: Banks Took Notice

After understanding the model Ford created (similar to what William Hershey did with his factory, housing development, and theme park), some people really liked this model and realized it was a lucrative market. It didn’t take long for this to become a global standard.

When I traveled to Foz do Iguaçu and visited the Itaipu power plant, they have a section where employees who work more than 25 years plant a tree. I was happy and surprised to see so many planted trees…

The Birth of the Modern Mortgage System

Realizing that companies wanted citizens to settle down and citizens wanted a permanent home, we combined hunger with the desire to eat—and that’s how banks found one of their most profitable products in the world: the mortgage.

The typical deal:

  • 20% down payment
  • 30% of your income for 30 years
  • Playing with people’s emotions about having a home that’s “theirs”

This is big business. However, it plays with people’s feelings about having “their own” house, and deals are made constantly. There’s nothing wrong with wanting a house. I just don’t agree with paying for 4 houses and getting 1.

Summary: Pilgrimage vs. Mortgage

My parents own their home, and for that, my father dedicated 15 exhausting years to pay it off. He sacrificed:

  • Vacations
  • Days off
  • Weekends
  • And much more

My Personal Philosophy

In the future, I will buy real estate for myself too. I believe it’s very important to reach old age and have a roof over your head—a place to keep your memories and things you’ve accumulated in life.

What I believe we all need to be careful about is the right time to buy. The strange thing is that this moment—only you will know when it comes (listen to your intuition).

Key Recommendations

Don’t follow other people’s ideas. Instead:

  1. Seek to qualify yourself and create value for the world
  2. Save money and with time, you’ll know where and when to buy your property
  3. Think carefully about this decision—your entire family will be affected
  4. Consider worst-case scenarios: What if you’re full of payments, have zero cash (because you used it for the down payment), and suddenly the government raises property taxes by 40%? This can happen.

The Path Forward

Having multiple income sources and increasing your patience are the roadmap to achieving not only your home but also to explore the world and discover opportunities wherever you step.

Until next time!