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“Credit has not been widened or deepened, and there isn’t enough product innovation to offer loans to this generation."
He says the mortgage market needs to be more adaptable and innovative, explaining that historically, housing crashes are followed by new product offers like short-terms ARMs, reset mortgages and subprime mortgages that have fueled the recovery.
Sure, let's start giving out innovative products like subprime, reset and short term ARMs to people that can barely afford them because that worked out so well the last time around.
btw, who the heck is this idiot journalist and how is Fox allowing such rubbish to be published?
You cant force people to buy houses in a free market. Supply and demand will just balance themselves out. If everyone can suddenly afford a house then the prices of houses will go up, thus making them unaffordable. Youd literally have to cap house prices, offer full govt backed financing, cap interest rates, and more.
“Credit has not been widened or deepened, and there isn’t enough product innovation to offer loans to this generation."
He says the mortgage market needs to be more adaptable and innovative, explaining that historically, housing crashes are followed by new product offers like short-terms ARMs, reset mortgages and subprime mortgages that have fueled the recovery.
Sure, let's start giving out innovative products like subprime, reset and short term ARMs to people that can barely afford them because that worked out so well the last time around.
btw, who the heck is this idiot journalist and how is Fox allowing such rubbish to be published?
You don't need a loan anyway - just rent and invest the difference.
Or you can use the so-called Riba free home ownership plan if owning really matters that much. It's a shame Riba free isn't more common or more available, especially for those who don't want to be in debt.
You don't need a loan anyway - just rent and invest the difference.
Or you can use the so-called Riba free home ownership plan if owning really matters that much. It's a shame Riba free isn't more common or more available, especially for those who don't want to be in debt.
That's a blanket statement that holds true sometimes and doesn't hold true others. Its a lot more complex of an equation than that. Sometimes the delta between homeownership and renting is 0 or negative, in which case its better to own. Also in these comparisons people fail to consider that rent will ALWAYS go up, where a mortgage will never go up.
Instead of "innovative" financing, how about we start building some less costly housing inventory? It is difficult to find newer small homes, very few have been built since the 1960s or so.
Instead of "innovative" financing, how about we start building some less costly housing inventory? It is difficult to find newer small homes, very few have been built since the 1960s or so.
This....times a thousand
Builders in my area are only building 2500+ squ foot mini McMansions. There are literally no new construction starter homes. And to boot the "cheaper" starter homes in my area are in the bad neighborhoods.
"Innovative home financing" huh? How about teaching younger people to be financially responsible? How about teaching them to prioritize saving for a home by making choices like driving an older used car instead of that shiny new one that comes with the big car payment and the higher insurance costs?
How about teaching them that to lower their ideas about what their first homes should be? Let's face it, you're not supposed to start off with a $300K McMansion when you're 24 or 25 and fresh out of school. Seems to me that most people today have forgotten about the idea of a "starter" home.
How about teaching them to NOT HAVE KIDS if they DON'T OWN A HOME?? Younger people today seem to have no problem popping out the kids one after another but boy oh boy, saving up for that 20% down payment sure is hard. Hint, hint - it's much easier to save the down payment if you don't have to buy diapers and baby clothes.
Cancel the Netflix and the X-box live subscriptions, give up the $200/$300 iPhones, quit buying those $6 lattes a day (might help you lose a few pounds too, btw), sell that Coach or Kors handbag on eBay and buy a replacement at Walmart, and start SAVING to buy a home. In other words, act like a grownup. How's that for innovation??
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,585 posts, read 81,206,701 times
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Quote:
Originally Posted by thatguydownsouth
This....times a thousand
Builders in my area are only building 2500+ squ foot mini McMansions. There are literally no new construction starter homes. And to boot the "cheaper" starter homes in my area are in the bad neighborhoods.
I never heard of a 2,5000 square foot McMansion. Here most new homes in the suburbs are fairly modestly appointed but 3,000 sf on a 10,000 sf lot, starting at about $750k. McMansions are more like 5,000 sf on a 6,000 sf lot with all kinds of costly amenities that don't suit the design and cost over a million. There has been a recent trend in Seattle to bulldoze older homes and replace them with a 4-6 unit rowhouses, at about 12-1,500 sf but they still start in the $600k range.
How about we just end the Fed, and let the Ponzi scheme collapse. Without the parasite FIRE economy, and local government regulations fed by free fiat money the youth can finally step in and help grow the real economy. Instead, we keep feeding old, bloated parasites that suck us dry. Unless you end the Fed, there will never be a free market.
Sure, let's start giving out innovative products like subprime, reset and short term ARMs to people that can barely afford them because that worked out so well the last time around.
You've bought a box of rocks concerning what happened "the last time around". There is exactly nothing wrong with subprime lending nor with any of the products mentioned. Problems arise when selfish crooks are left to mind the store.
Quote:
Originally Posted by k374
btw, who the heck is this idiot journalist...
She's a roving fluff-piece writer for several worthless outlets.
Quote:
Originally Posted by k374
...and how is Fox allowing such rubbish to be published?
FOX's business model is to publish rubbish.
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