31–40 of 103 posts
Then, it's so ridiculous that it doesn't merit an answer. If they need help, there's tons of people from 2008 onward that can tell them all about the risk of the alternative.
Earlier quoted context omitted.
Relevant: http://i.imgur.com/eIM5o.jpg
The moral of that cartoon is that we should all become beggars I guess. It's a funny way to represent it, but there is one person missing from that cartoon. The person that refuses to go into debt, saves until they have the money to spend on whatever it is they want to buy. Another useful addition would be someone with a mortgage that they actually pay off on, their net worth would likely dwarf the net worth of the b…
There's another person missing from that picture - a person who has debt and has positive net worth.
Honestly debt is not a boogeyman, it can be very enabling and given the current economic situation, interest rates and economic outlook people saving are going to end up on the losing side in the long run.
> My parents rented the family home in Paris for 45 years, and although they did buy a seaside flat and a cottage in the country in the 1970s, their value has only kept pace with inflation American home prices only started rising, in real terms, after WWII [1]. This is driven by people wanting to drive more income to buying land, i.e. treating land as a superior good. Growing government intervention is also a cause.…
> In the long-run, real house prices appreciate at the rate of inflation. Some one should tell this to Canadians. Since the early-mid 2000s, house prices have been rising much quicker than inflation, to the point where people think homes are an 'investment' that will always rise, leading to a massive housing bubble (also propped up by foreign buyers, many of whom are using land to launder money gained through corrupt…
CAD is cratering now and Poloz can't raise rates without tanking land prices, then all that BS about Canadian banks being well run goes out the window. Everywhere has well run banks when prices keep rising.
I had to rent for almost 20/years before I could afford the deposit on a house, but I'm glad I finally could because I simply couldn't afford to rent any longer, even though I would've quite liked to.
Read it. All of this and so much more is explained within. The history of money, credit, coin, slavery...they're all related. It's a life changing book.
Earlier quoted context omitted.
The moral of that cartoon is that we should all become beggars I guess. It's a funny way to represent it, but there is one person missing from that cartoon. The person that refuses to go into debt, saves until they have the money to spend on whatever it is they want to buy. Another useful addition would be someone with a mortgage that they actually pay off on, their net worth would likely dwarf the net worth of the b…
>It's a funny way to represent it, but there is one person missing from that cartoon. The person that refuses to go into debt, saves until they have the money to spend on whatever it is they want to buy. There's another person missing from that picture - a person who has debt and has positive net worth. Honestly debt is not a boogeyman, it can be very enabling and given the current economic situation, interest rates…
Spain is also a Catholic country and everyone has always wanted to own a home, as in the UK. Lately there are more rented flats but the reason is sky-high house prices and low income, not that people like renting.
Edit: This is a US perspective but we've had the same question posed here.
Edit: The article's title is misleading. It conflates buying a home with irresponsible use of debt.
Earlier quoted context omitted.
Relevant: http://i.imgur.com/eIM5o.jpg
The moral of that cartoon is that we should all become beggars I guess. It's a funny way to represent it, but there is one person missing from that cartoon. The person that refuses to go into debt, saves until they have the money to spend on whatever it is they want to buy. Another useful addition would be someone with a mortgage that they actually pay off on, their net worth would likely dwarf the net worth of the b…
Earlier quoted context omitted.
Your response to that should be: "you are not a responsible adult until you are debt free." That is actually one of the secrets to a lower stress longer lasting life IMO.
Renting is just another form of debt, though.
I have no issue with mortgages entered into by people who understand how to live within their means. There are lenders who prey on those who don't truly understand what their means are, sure, but that doesn't make the whole enterprise of home ownership a faulty one.
And before anyone nitpicks: yes, you do own the house you buy with a mortgage. It's security for the loan, and the mortgage gives the banks the right to take the property away from you to settle your debt. On well negotiated loans used to purchase property smartly, it can actually be an investment. One that may not pay as much as an index fun after 30 years, but in the meantime, you've had a place to live.
I would also suggest that many (not most, just many) people without a mortgage are unmarried and/or not parents. There is an intangible benefit to "setting down roots" and "making a home of memories" with a family. I, personally, have found that to be invaluable.