Housing cost is society's ultimate hustle

[winb83]

Anyway you look at it housing is society's way of keeping people down especially the middle class and lower. Always perpetually too expensive. Almost always requires debt for regular people to acquire. Even in renting the cost is high.

The rich elite needs a constant supply of working class people and the easiest way for them to guarantee that is to keep housing so expensive.

They strap you with this huge contract that takes up much of your adult life to pay back and sucks up a quarter to a third of your take home pay. Couple that with a car and it just holds regular people down.

The opportunity cost of a average mortgage payment over 30 years compounded @ 8% annually is $1.4 million dollars. Instead people pay $370K into a home that isn't even worth that because of amortized interest. Add the average new car payment into the mix and over 30 years compounded 8% it's $2.1 million dollars.

 

[MischievousMonkey]

Don't say that to Pitbull you communist.

On a more serious note, you're right, the housing market, among many markets, is a farce.

 

[Wild self]

It's the biggest scam out there, and making historical profits. The bloodsucker of disposable income.

 

[CouldntBeMeTho]

Thats the biggest key to keeping poor people poor

 

[⠀X ⠀]

It was the Banks’ ultimate product.

 

[Wild self]

And TLR loves being landlorda and thinking that infinite money is available.

 

[MikelArteta]

Instead people pay $370K into a home

i wish i could find a property for that amount

 

[Micky Mikey]

That and college

 

[winb83]

i wish i could find a property for that amount

The average mortgage payment in America is like $1030. Over 30 years that adds up to paying $370K.

That and college

I completely disagree about college. It is a hustle but it's optional. Housing is required. With college you can skip it and develop a skill.

 

[idonttouchgrass]

Y’all rather live under rocks or homes of your own ingenuity?

 

[50CentStan]

The loans, housing price + property taxes are over priced. Unless you getting shyt passed down you gonna be struggling forever. And even if u get property passed down, real estate agents flip neighborhoods every 25 years or something and your house becomes worthless. They buy it cheap. Run the price up. Rinse repeat.

 

[CopiousX]

The average mortgage payment in America is like $1030. Over 30 years that adds up to paying $370K.

The greatest irony here is that the purchase price of that house isn’t even 370k. Interest is a killer. That’s the mortgage payment on a 200k house. Your payment on a legit 370k home is 1600ish .This problem just gets compounded if you get those first-time or fha loans that requires you to pay extra for mortgage “insurance”.



Plus, getting a 200k house with a $1030 payment is more or less in the hood in every major city. The whole game is a racket. even down south in ATL, you need 500k for a good spot within city limits. The only alternative is going to the southern burbs and driving 45min commutes.


However, I don’t think it’s systemic though. The fall of soviet states and the rise of China have created a whole flock of foreign buyers in ever city buying up any good land (far and safe from their homelands) and inflating housing prices for the rest of us. Even whites are getting caught up in this mess too.



Btw, it’s an international problem as well. I got uncles who do contract work in the UK and Canada and they say it’s the same story out there.

 

[King Frost]

buy land, build your house at your own pace
the scam is optional
after living in a neighborhood for 25 years where i can hear a mofugga next door turn on their shower in the morning, i was over it.

 

[G-Zeus]

No worries .. gen Y will kill it

 

[Crude]

I've said it in a few other threads that the current structure of the economy particularly the housing market isn't sustainable.

The threadstarter is right it is a hustle, by the time you have paid that mortgage off you've paid for that home sometimes 3 or 4 times over.

Regular degular single family homes running around 280K - 300K or better now when you could buy that same house for about 60K - 90K in the 1970s and 1980s. People's wages aren't increasing at a fast enough rate to keep up with those mortgage rates.

I've said for years the federal government should either increase wages starting from the bottom up and ocassional increase them more as inflation increases.

These banks that have been steadily bailed out by the federal government though want you indebted to them the next 30 years while they charge you an insane amount of interest and then will turn around and foreclose on your shyt when you can't pay. This is not to mention subprime mortgages shyt banks issue to people that they know can't pay. You basically renting from the bank until your mortgage is paid off.

A home is a great investment but they are pricing the common person out them. Eventually that bubble will bust you can't keep increasing the price of goods with no regard for wages. Eventually the market will crash and we'll be right back where we were in 2008.