I don't consider Trump a dumb man but his 50 year mortgage idea is pure stupidity

[Baller234]

This is false. Do you know what amortization is?

You're an idiot.

If a bank is lending you money at 2% then you absolutely, positively want to borrow as much money as you possibly can during that time. You should be taking on MULTIPLE mortgages if you can and buying as many properties as humanly possible.

[rmt]

Short of increasing the housing supply, lowering the monthly payment is a way of getting more people into homes. The point is that because of our $38 trillion debt, the government will have no choice but to inflate the US dollar. So 30-40-50 years into the loan, your (fixed) mortgage payment will be peanuts (you are repaying the loan with CHEAPER dollars). The alternative of renting benefits the landlord - not the tenant as landlord has a FIXED mortgage and increases the rent to cover property taxes and insurance.

Of course, lowering the barrier will allow more people to qualify and drive up demand. Really the solution is to build more houses but that's on the local government regulations, environmental crazies protesting, selfish surrounding owners voting to restrict more building, etc.

[Bill Gates]

You're an idiot.

If a bank is lending you money at 2% then you absolutely, positively want to borrow as much money as you possibly can during that time. You should be taking on MULTIPLE mortgages if you can and buying as many properties as humanly possible.

He was talking about the length of the loan. You wouldn't want a 1,000 year loan at any interst rate. The first like 100 years would be mostly just interest payments that the appreciation couldn't make up for. Not for decades anyway.

[TeflonDonTrump]

He was talking about the length of the loan. You wouldn't want a 1,000 year loan at any interst rate. The first like 100 years would be mostly just interest payments that the appreciation couldn't make up for. Not for decades anyway.

Why wouldn't you want a 1000 year loan at 2.3% interest when you can get returns of 5% elsewhere. Do you even know what you are talking about? I would never pay off any loan for perpetuity if its at 2.3% when s&p gives out 5

I'll gladly pay any interest at 2.3% if i can get 5% elsewhere.

[Bill Gates]

Why wouldn't you want a 1000 year loan at 2.3% interest when you can get returns of 5% elsewhere. Do you even know what you are talking about? I would never pay off any loan for perpetuity if its at 2.3% when s&p gives out 5

I'll gladly pay any interest at 2.3% if i can get 5% elsewhere.

You were talking about a 1,000-year home mortgage at 2.3% not a straight cash loan. We are talking about Americans getting into homes right? I was already being generous with the 2.3% part given that interest rates are no where near that today anyway so it's pointless.

[bladefd]

He was talking about the length of the loan. You wouldn't want a 1,000 year loan at any interst rate. The first like 100 years would be mostly just interest payments that the appreciation couldn't make up for. Not for decades anyway.

You are right on the money. Interest must be paid first before you ever dent the principal. On a 1000-year loan, the interest would be outrageous. Even a 50yr loan, the interest would take a couple of decades to pay off before you even start paying back the principal on the loan.

The only scenario it would be worth it is if you take the loan and do extra principal payments annually to get the interest down. You would need extra capital for that.

[TeflonDonTrump]

You were talking about a 1,000-year home mortgage at 2.3% not a straight cash loan. We are talking about Americans getting into homes right? I was already being generous with the 2.3% part given that interest rates are no where near that today anyway so it's pointless.

Even if its a 1000 year mortgage i wouldn't pay it off. Any money i earn i can use it to invest in something else. Just different money goes elsewhere. You really aren't that smart huh.

[ZenMaster]

NOW see an investment? Real estate?

Real estate has always been seen as an investment.

Sure, but more so today where people expect higher returns and are much more likely to own a second home they rent out as a generating asset.

[Baller234]

Sure, but more so today where people expect higher returns and are much more likely to own a second home they rent out as a generating asset.

I don't think the average person was as savvy back then, nor do I think they were thinking along those lines. People spent money differently back then. They were more frugal. The average family didn't even look to own more than one car, let alone more than one house.

But even still, it's not real estate investors driving up the price of homes. There's no reason to go after real estate investors.

[crosstin]

But even still, it's not real estate investors driving up the price of homes. There's no reason to go after real estate investors.

I'm not saying that the government should go after investors but how can you say investors don't drive up prices? There's no way you can justify that statement when investors target low price homes and 27% of all homes under 450k sold this year (and at least 26% every year since 2021) were sold to investors. Even worse. If you live outside California, NY, Texas or Florida, most of the investor homes purchased in your state were by out of state investors.

[Off the Court]

Even if its a 1000 year mortgage i wouldn't pay it off. Any money i earn i can use it to invest in something else. Just different money goes elsewhere. You really aren't that smart huh.

Gazillion year loans exist today. It's called "renting"

[ShawkFactory]

You're an idiot.

If a bank is lending you money at 2% then you absolutely, positively want to borrow as much money as you possibly can during that time. You should be taking on MULTIPLE mortgages if you can and buying as many properties as humanly possible.

Herein lies the problem. While this is a smart individual investment in times like these, it's horrible for the market in the long run. I don't know how you stop this other than barring individuals from purchasing a certain number of properties. Don't know what that would look like though.

[Baller234]

Herein lies the problem. While this is a smart individual investment in times like these, it's horrible for the market in the long run. I don't know how you stop this other than barring individuals from purchasing a certain number of properties. Don't know what that would look like though.

How is more people being able to purchase homes a bad thing? When the cost of money is cheap, that's a great thing for home buyers.

Both investors and end users.

[ShawkFactory]

How is more people being able to purchase homes a bad thing? When the cost of money is cheap, that's a great thing for home buyers.

Both investors and end users.

I was referencing your comment about individuals buying as many homes as possible when rates are low.

It’s basic supply and demand dude. Yes it’s great for investors but it’s horrible for future buyers because it will inevitably sky-rocket the prices.

A 1300 square foot condo now costs more than a 5000 square foot home with a basement did 30 years ago. Younger generations are screwed.

[Baller234]

I was referencing your comment about individuals buying as many homes as possible when rates are low.

It’s basic supply and demand dude. Yes it’s great for investors but it’s horrible for future buyers because it will inevitably sky-rocket the prices.

First of all there's nothing stopping a homeowner from also becoming an investor. When money is cheap, buying a second property is still a smart move even if you already own a home. Also, homes are turned over all the time from end to user to investor and then back to end user. A lot of those investors are going to sell eventually, especially if there is strong demand and they can get out at a great price.

People need homes to rent too, not just buy. Investors in the market have their place so long as the number of investors doesn't outweigh the number of end users, and that's never going to happen.

A 1300 square foot condo now costs more than a 5000 square foot home with a basement did 30 years ago. Younger generations are screwed.

So then unless we do something about:

- Inventory
- Blocking international money

You should want interest rates to come down and the price of money to be as cheap as possible.