Quote:
Originally Posted by #-3
I lean more to the European theory, a day will come when it takes a family 75-100 years to payoff a piece of property, mutli-generation homes will become normal, and people will have to put major reinvestment into their family property every 25-30 year.
Its probably going to take a big change in the way our banking system views lending.
Really it is too bad for all of us that were teenagers in '99, because not having the chance to buy property before then put us way behind where we could have been.
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Not all Europeans lean that way. The German model has their government regulating home prices and development, which has lead to economic stability and has freed a great deal of their nations wealth and resources from being tied up in real estate:
http://www.forbes.com/sites/eamonnfi...posed-to-do/2/
A generation ago, a home was closer to the equivalent of 1 years salary for the new home buyer, now it's closer to 10-20 times the salary. We've seem to have agreed, as a society, that a home is a financial burden we should carry our whole lives. The majority of a homes value is in the cultural perception of it's value and cultural perception is a tricky thing that is capable of dramatic change within a single generation. Taking a 75-100 year mortgage based on good faith in cultural perception and stable economic growth seems like madness to me.