Since the housing market looks like a crowd of people just signing mortgages as fast as possible just to then turn around and charge that mortgage plus a little bit.
I shouldn’t pay someone’s mortgage like seriously this is just adding an unnecessary problem to the real problem of “living somewhere”
Buy your own house or condo for cash. Then you pay maintenance and taxes only. Done.
The big issure is the high cash price of housing. The true total society cost of housing per unit per year is actually the annual maintenance cost plus the cost of new construction per year divided by the total number of units. This is presumably less then the cash price.
General cash price is pretty close to the cost of building a new house. I guess you could annuitize that over a life time to get a set of annual payments and compare. Or you could go the other way and calculate the present value of the annual per unit cost and compare to cash price.
But I don’t have hundreds of thousands cash
oh man, if I could find anything under a million … I still couldn’t afford it
You can build new at the edges of suburban wasteland for cheaper sometimes don’t lose hope
I live in Australia. Hope wasn’t lost so much as drug out on the street and shot.
Yeah… That hope was a nice bloke. Should have seen it coming.
Even if you do pay cash, housing is expensive. Our little house in a not so good part of town costs about $25K a year. About half that is out of pocket and the other half is capital opportunity cost. One reason many people carry mortgages longer then they need to is the capital opportunity cost. My wife and I both rented until about age 40 and to our surprise we were just barely able to do cash at that point so we did.
The other issue at the moment is high interest rates. Mortgages look less good compared to cash.