Comment posted How did people have homes before banks invented mortgages for the sake of profit? by Skater_Guy5.
have the money…..or build it yourself
Skater_Guy5 also commented
- “Prisoner of the bank”? I’m amazed by the number of people who view lenders as somehow evil. The people who make these sorts of complaints are the ones who will never earn enough cash to actually buy anything outright in the first place and, thus, they only way they’ll ever own a thing is if someone will lend them the money to buy it.
- The issue is that because financing has become the standard way to buy a home (or any other major purchase for that matter), prices have been driven up because you’re expected to take out a loan for the purchase. The banks that earn our interest depend on that income to make more loans to individuals so they can put that money back into the economy and to businesses so that they can expand and create more jobs. It would take a major economic correction to bring the prices of those items back down so that we could all pay cash for everything. I don’t know about you, but I hope not to see that happen in my lifetime.
The US economy as it operates today needs us to spend more than we have; that goes for individual consumers as well as businesses. Credit literally is the life blood of our economy. If we all started living within our means (including the Federal Gov’t), we’d shoot into a nasty recession and it would take time for us to rebuild our economy. Even after we bounced back to some kind of equilibrium, I doubt the US would ever regain the economic and political clout (spare me the evening news propaganda) it current has.
Also consider that the salary you make now is based on our current economic system. If we reduced the price of housing to eliminate the need for financing, prices would drop across the board and along with them wages. We would all experience drastic changes in our standards of living.
- they paid for it themselves by selling chickens?
of course, you can pay for a home up front without using a bank. otherwise, you are simply out of luck and must get a loan, that’s the way of the world. unless they accept chickens.
- As people started moving to cities to work in factories they started leaving their ancestral homes and stopped paying taxes to the Lords, who hired men to pursue them to the city and try to collect a portion of their wages.
An old ancestor of mine (of whom I’m very proud) King Richard II had the balls to in effect declare peasants were people and that the Lords owned the land and not the people and therefore couldn’t tax people who didn’t live on their land. needless to say the Lords were outraged by this, and also by Richard’s decision to tax the Lords and not the peasants to pay for the wars in Ireland, Scotland and France, and further his ending the Irish and French wars and working on finishing the Scottish war. So they turned on Richard and supported a pretender to the throne who had Richard tossed into the tower where he allegedly died of hunger. He also promptly re-started the wars. The war with France later became known as the hundred years war, and as for the British Royal family….well, you’ve seen what they ended up like.
In the modern world, being prisoner of the bank isn’t such a bad thing. About 10-15 years into the mortgage inflation has increased the value of your property and decreased the value of the money your paying to the point that it all works out better for you. If you can afford the payment, buy and hold. It’s just about the only way to become financially secure in modern America. I’m 48 and retired, not because I ever made a lot of money but because I bought and held onto property that now pays for me to do whatever I want. You’re not paying double for the property, you’re purchasing an option that gives you the right to the increasing value. Also remember that you get to use the property in the mean time.
A word of advice, only buy property that you will use or that generates decent income, not bare land that will just sit and eat up your cash flow, and don’t fall into the trap of refinancing and spending the money.
Also, now may not be the best time. Keep your eyes open and save up. Maybe in a few years.
Good luck!
- Well, if you don’t want to owe on anything, you just save until you have enough to buy it.
Unfortunately, people can’t usually wait to save 6 digits to purchase housing…so they borrow.
One way you can make things more realistic, is to save and save, and then look for a really good deal (such as a forclosure) or a fixer upper…something that needs a lot of work but is habitable until the fixing is over. Then you just buy supplies to remodel with cash and pay as you go.
A friend of mine said she insulated her whole house over the course of about 2 years, debt free, by buying a roll of insulation every week…installing it, and when she came to the end of the space, instead of buying insulation that week, she bought drywall or whatever to cover everything up.
You can consider an industrial type space. By tricking out, say, a large storage shed, you can make a comfortable home. Consider using materials in different ways than they are intended….you can create an interesting space by using a garage door instead of anything fancier, and then you have a huge opening to blend the indoors and outdoors. Large open concept floor plans means you save on things like interior walls, and just have to worry about support beams and columns. And for supplies, with regard to things like brick and tile, the bigger they are the easier and cheaper to install…and the fewer you need. So there’s that.
You can also look into a rugged piece of land with the resources you need to harvest trees for lumber, or gather rocks…and build your house with the bounty of your own land. This is how they did it in the old days. You just buy things like nails, and pay for milling the lumber, etc.
You can also look into things like sod houses, or hay and mud, etc. where primitive methods are used to create a more eco-friendly AND cheaper house.
You can buy a cheapass motor home for a lot less than a building….live in it. Save until you can set up a basic weatherproof structure. Use it for storage as you gather more supplies, and then use those supplies to fix it up after you have bought everything.
You might consider a flexible savings plan that gathers interest while you save…so that the money is working harder. Then buy all your stuff at once.
One place not to scrimp…is with things like solar panels, etc…these will help you save money later…build it INTO your original design. And the prices for eco technology are getting better.
Recent comments by Skater_Guy5
- What is going to happen to the homeowners of the mortgages the government is bailing out?
Most of them will just keep making their loan payments like nothing happened. They will owe the same amount, have the same interest rate, and keep making the same payment as before. Those who are delinquent and unable to get the loan current may be able to get a lower rate from the government. - What is going to happen to the homeowners of the mortgages the government is bailing out?
Nothing.The bailouts will benefit the lenders who made the bad loans. Those loans have already gone bad. The lenders (or the institutions they sold the mortgages to) have already foreclosed on the properties.
- What is going to happen to the homeowners of the mortgages the government is bailing out?
No one knows because this is a move that has never happened before.My prediction? Tons of these loans are going to be re-negotiated…that’s much cheaper than allowing them to foreclose.
Project Hope was a program that Bush passed, but was voluntary among the banks…the problem is, most banks are refusing to participate b/c they are trying to minimize their losses and playing hardball.
So, when the industry fails to fix it’s own problem, the gov’t steps in.
- What is better for getting loan approved dealing with credit cards?
If you’re dealing with how it will affect your credit, both have their pros and cons.Check out Loan-Com.info and do a search for bad credit loans and credit card offers. They have dozens of each of them available at reasonable rates and terms.
- What is going to happen to the homeowners of the mortgages the government is bailing out?
The only thing that matters is that the debt is still owed.A creditor can sell your debt at any time and the new creditor has to abide by the same contract you already signed.
But, we don’t get a free ride, only the rich investors who made billions on our backs do.
Welcome to America ran by Wall Street & mega-corporations.
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