Housing director confirms administration ‘working on’ 50-year mortgage after Trump hint
Should focus on more stringent build quality from commercial/residential companies first.
Eg.
Fix that first and then the value of the home can be talked about, and the other issue is that astronomical home prices need to come down first so the younger generation can actually afford starter homes (or find starter homes at all).
I don’t think it makes mathematical sense. Generally, the longer the loan the higher the interest rate to offset the risks banks need to take on due to fluctuations in interest rates, so adding 20 years would likely not even change the payment for the person getting the loan (when comparing 30 vs. 50), and the increase in the buying power wouldn’t increase that much.
Maybe if there was a very niche customer or builder that was trying to push this, but unless the government subsidizes a part of it (which would be insane), it doesn’t make sense at all. Only an idiot would propose something like that…oh wait.
Work for who? The people? Nah, the people always lose.
That’s the point. Another way to squeeze money out of the populace.
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Are we talking about the US?
I don’t think starter homes are even built anymore. All they want to build is oversized houses that have an insane price tag. In the old days starter homes aren’t large at all, 2 bedrooms, a living room, and kitchen, maybe around 30-40 pings (at least for Taiwanese units, around 1000 sq ft).
The bigger problem is local zoning regulations prohibit most of America from having anything other than single family houses, and that neighborhoods made it clear they do not welcome low income households, hence property prices going nuts everywhere.
the zoning issues are part and parcel of creating starter homes for the younger generations. The large companies that crank out badly built McMansions aren’t exactly building quality homes with good materials either.
They aren’t, but they could sell mcmansions for a lot more, even if the construction is shoddy.
But you couldn’t buy starter homes anymore… it’s mcmansions, or apartments, or tents. There’s no middle ground it seems.
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