Crazyraceguy said:DeformedTree said:Alex said:DeformedTree said:How would the owners of such places get rich? Poor/Low Income people might be able to improve their lives? This sounds crazy.
Easy, rig the housing market. Last 50 years, wages rose by 10% and housing prices by 800%. Everybody needs a bank loan to buy a house, and bank loans mean interest.
No different than in the US. Aside from someone building a house on their own someplace, everyone has got loans to buy a home for....basically the beginning. 50 years ago interest rates here were massive, folks buying/building homes in the 70s were paying 10-15+% on mortgages, now people pay....3%. Housing loan rates are low and have been very a very long time, and even after the crash, it's not very hard to get a loan for way more than you can afford, but mainly that sort of thing has moved on to cars. Go get a 96 month loan on a used car. You can get 120 month loans if you would like![]()
Yes. I bought my first house in 1984. I got a discounted rate as a "first time home buyer" and it was a whopping 11 3/4%. I think that "savings" was 1% or maybe 1 1/4%? I don't remember.
My last mortgage started in 2002 and I think it was 5% maybe 5 1/4%, but it was only 15 years
Oh, the high-interest rate era? You should add that that was fully compensated by lower prices and when mortgage term lapsed you could refinance at half the rate while the principal was never corrected for inflation.
Average Dutch home was 3.9x median income in 1990. Now it's ... 10x
30 year old homes that could 30 years ago be financed with a single 0.8x median wage now require 2.2x median wage to finance. But back then the windows weren't expired, the roof wasn't leaking and the outlets weren't yellow