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If a typical house can last so much longer than a typical generation time (~30 years), and the typical mortgage term of 30 years, then why isn't it more common for the average Joe to own a home outright? If most Americans actually have to pay rent/mortgage, then it would seem that, for whatever reason, in a sense the average housing unit is actually paid for 2-3 times over in its lifetime. What gives?
Population growth? If this is the answer to the riddle, then more and more people should be owning outright as population growth slows, right?
Our country is run by bankers and they want you to be a debt slave for the rest of your life. The entire western world exists for only one reason and that reason is = corporate profits. Go work, consume, spend, spend, spend, be a debt slave, don't save and die poor at the end. The end game is for you not to have/own anything, to strip you from any wealth that you may have.
Our entire economic system is sick and our way of life is sick as well. Home ownership rate today is at the all time low. The only recovery in housing since 2008 was "price recovery" supported by the FED and stolen public money. Price recovery alone doesn't make a real housing recovery, it's a scam. Remember home ownership rate by end users, people who buy homes to live in them, is at the old time low. You have people like Sport and Misty who speculate with homes, rent them for profits and etc. Is this why homes are build in America today? So, that speculators can snatch them and rent them to Americans who can't afford to buy a house in their own country anymore. Americans are renting and not buying, they can't afford to buy a house today.
Poster Sport and Misty lives in Las Vegas. That is a city where most neighborhoods are destroyed and every other house is a rental unit owned by speculators and wall street hedge funds.
The Fed unstated goal has been to reflate the bubble not deflate it. It is VERY easy to deflate asset bubbles. Higher interest rates are all that are needed. We needed this to begin in 2001. Greenspan began this a few years late, then lost his nerve, and ran out of the house screaming. Bernanke had no clue. His goal was to prove that the Great Depression was a mistake because of monetary policies. He had no clue about bubbles. The global economy is stagnant because it has WAY TOO MUCH DEBT -- this Debt Bubble is the bubble we need to deflate. But the FED is afraid to do this because it implies pain and perhaps the loss of their jobs, perhaps social upheavals. They look the other way, in the name of 'keeping the peace'. Our leadership has no courage. Watch out when Samson comes in to the temple. When the shaking starts we will know the process has begun. Then we will get to see how long we can hold our collective breath.
Houses get resold because heirs dont want to live where their parents lived. Simple as that. After a couple of generations nobody wants to live in it anymore and it gets sold . The heirs buy someplace else...
Our country is run by bankers and they want you to be a debt slave for the rest of your life. The entire western world exists for only one reason and that reason is = corporate profits. Go work, consume, spend, spend, spend, be a debt slave, don't save and die poor at the end. The end game is for you not to have/own anything, to strip you from any wealth that you may have.
Our entire economic system is sick and our way of life is sick as well. Home ownership rate today is at the all time low. The only recovery in housing since 2008 was "price recovery" supported by the FED and stolen public money. Price recovery alone doesn't make a real housing recovery, it's a scam. Remember home ownership rate by end users, people who buy homes to live in them, is at the old time low. You have people like Sport and Misty who speculate with homes, rent them for profits and etc. Is this why homes are build in America today? So, that speculators can snatch them and rent them to Americans who can't afford to buy a house in their own country anymore. Americans are renting and not buying, they can't afford to buy a house today.
Poster Sport and Misty lives in Las Vegas. That is a city where most neighborhoods are destroyed and every other house is a rental unit owned by speculators and wall street hedge funds.
The Fed unstated goal has been to reflate the bubble not deflate it. It is VERY easy to deflate asset bubbles. Higher interest rates are all that are needed. We needed this to begin in 2001. Greenspan began this a few years late, then lost his nerve, and ran out of the house screaming. Bernanke had no clue. His goal was to prove that the Great Depression was a mistake because of monetary policies. He had no clue about bubbles. The global economy is stagnant because it has WAY TOO MUCH DEBT -- this Debt Bubble is the bubble we need to deflate. But the FED is afraid to do this because it implies pain and perhaps the loss of their jobs, perhaps social upheavals. They look the other way, in the name of 'keeping the peace'. Our leadership has no courage. Watch out when Samson comes in to the temple. When the shaking starts we will know the process has begun. Then we will get to see how long we can hold our collective breath.
Dont take social upheaval as a joke. Social upheaval can come to a gated community as well as the projects and no man is safe. History teaches us that. Take away a law abiding middle class citizens hope and means to feed his family and you can start a civil war.
Dont take social upheaval as a joke. Social upheaval can come to a gated community as well as the projects and no man is safe. History teaches us that. Take away a law abiding middle class citizens hope and means to feed his family and you can start a civil war.
Oh no, it's not a joke at all. Chaos and Civil War comes next to America if the Fed doesn't raise rates in the near future, if majority of Americans and consumers are not allowed to recover thru savings and safe investments. There will be a lot of pain as well, but unfortunately there is no painless solution for our problems that we have created for ourselves.
We need to raise interest rates and POP all asset bubbles, deflate rent and housing prices so that Americans can afford to buy a house in their own country again. Higher interest rates will also flush speculators down the drain straight into the sewer .
If a typical house can last so much longer than a typical generation time (~30 years), and the typical mortgage term of 30 years, then why isn't it more common for the average Joe to own a home outright? If most Americans actually have to pay rent/mortgage, then it would seem that, for whatever reason, in a sense the average housing unit is actually paid for 2-3 times over in its lifetime. What gives?
Population growth? If this is the answer to the riddle, then more and more people should be owning outright as population growth slows, right?
Home ownership is actually pretty common. About 1/3 of homeowners own their homes outright. My parents did. I do. My brother and sister do. Some people can't afford to buy a home. There is rental assistance, but there is no such thing as mortgage assistance. Other people don't want to own a home, and would rather spend their money on other stuff.
A lot of people float a 15 year mortgage. The home is paid off in pretty short order, but that is not the end of the story. Homes also take a lot of expensive maintenance. A roof will cost from $6,000 to $30,000, depending on how difficult the job is. A house has to be painted. Plumbing springs leaks. Water heaters quit. Appliances and HVAC systems have to be replaced. Foundations crack and wood rots. Old designs and technologies have to be updated. I have owned my home for 22 years, and have put 50% of the purchase price into maintenance and upgrades. There is no way a house remains liveable for 120 years without a huge investment in upkeep.
Our country is run by bankers and they want you to be a debt slave for the rest of your life. The entire western world exists for only one reason and that reason is = corporate profits. Go work, consume, spend, spend, spend, be a debt slave, don't save and die poor at the end. The end game is for you not to have/own anything, to strip you from any wealth that you may have.
This is a big part of the reason....and something the OP did not address -- the fact that the prices of nearly all houses continue to rise during the "lifetime" of the house. Did you know that prior to WW2, people almost never used mortgages to buy houses? But mortgages (financialization) contributed enormously to the rise in home prices. Same thing has happened to cars: most people now need financing to buy even a used car!
Quote:
Originally Posted by Larry Caldwell
There is no way a house remains liveable for 120 years without a huge investment in upkeep.
Another part of the equation. Just as a car needs repairs/maintenance over its lifetime, so do houses.
Houses haven't gone up in "value". A place to live in 50 years ago is still a place to live in today. A dollar has become worth less over time. Hopefully we can get some leadership in the White House and Congress before it becomes worthless.
I get that people sell houses, but this doesn't explain it, because the money they get should be enough to buy the next house, unless the latter is more expensive. I get that people move up in house, but you can then ask the same question about the next house, and houses cannot just keep getting bigger without bound, right?
It seems to me that EITHER 1) this points to a much more serious wealth gap than we thought, OR we should expect that by (for instance) 2050 we should see outright owners become more common.
Since they are paid for, would you "sell" one to the OP at no charge, as they want to think you should ?
Stop putting words in my mouth please. SportyandMisty's property is of no relevance to me, only to heirs, if any.
Every property is owned by someone, or some corporation, excluding public lands e.g. national parks, etc.
When an owner dies, someone will get that property, 100% of the time. Not rocket science.
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