Real Estate- location location location
home owners look for a house by the good school district- nice community- safe- near work for commuters
Good areas are just more and more money
having a home that is 100% paid off seems like a wonderful idea until you get sued.
Hogwash! I can show you how to pay off your mortgage in a fraction of the time on the note.
This is much the same as another article, here. What these guys are saying, without anything to back it up, is not what they intend - perhaps. They're almost generalizing, and I have no reason to doubt necessarily, that Americans were able to purchase homes, big homes, on hillsides, not more than 40 years ago for 30-60K dollars. The same homes sell for a million, today. You figure the inflation on that. And it affects all the other properties, as well.
Free market. But that free market, if these guys are right, which is the question, had then betrayed wage earners, who then can't pay the housing, while the real estate market locks them into huge payments, at some point, just so they can feel like their parents but where their parents paid just the smallest fraction for their own homes, and with whatever government assistance (I don't know) if they were vets of WWII, or even Korea.
I'd like to see their figures, these guys in both threads. Certainly what they say is true for some. But how does it break down? Who ARE buying homes? with what? with what further assistance and grants? and so on. Is it that bad? Perhaps. Or does it look a bit different for different groups, if only someone took the time to get a bit specific? If it were that bad, wouldn't auction sales, the 'bankruptcy bargains' be such a common thing that every water-cooler employee would talking about the next land sale and how they were saving up to pay flea-market prices?
Most Americans don't stay in one home long enough to pay off the mortgage anyway. As long as you've made a substantial downpayment on your home which most buying second and third trades have....home equity and even interest only loans won't really effect them if the market slows or goes down for a period. In the DC area people are putting down 150K plus as downpayments on upper bracket homes, which isn't a big deal as many have pulled out the maximum taxfree profits from their last sale.