[Yogi]

People have to get away from the "I want the biggest, the best, Brand new, etc., and I want it right now" attitude, and learn to live within their means!
When I went into my bank to arrange to purchase my home, my 'investment councillor' tried to get me to purchase something 'newer-bigger',. Not what I wanted or needed at all. I remained adamant. Then, he tried to get me to finance it thru his bank. Again, not what I wanted or needed. He assailed me with 'all the interest' I would 'lose' if I took that money out. My reasoning was " why would I leave my money with you to earn me 3%, and then borrow the same amount from you at 7%??? Again, I remained adamant. I drew a bank draft for the full purchase price. Granted, the place needed/needs a lot of work, and I did get it for a good price, but it's paid for in full, and I am constantly adding equity with the work I have done/doing. Just tearing out the old livingroom, and turning it into a bedroom has cost me about $2,000, complete with hardwood flooring. This alone has added $10,000 to the value of my home.

[andyt]

Yogi Yogi:

People have to get away from the "I want the biggest, the best, Brand new, etc., and I want it right now" attitude, and learn to live within their means!
When I went into my bank to arrange to purchase my home, my 'investment councillor' tried to get me to purchase something 'newer-bigger',. Not what I wanted or needed at all. I remained adamant. Then, he tried to get me to finance it thru his bank. Again, not what I wanted or needed. He assailed me with 'all the interest' I would 'lose' if I took that money out. My reasoning was " why would I leave my money with you to earn me 3%, and then borrow the same amount from you at 7%??? Again, I remained adamant. I drew a bank draft for the full purchase price. Granted, the place needed/needs a lot of work, and I did get it for a good price, but it's paid for in full, and I am constantly adding equity with the work I have done/doing. Just tearing out the old livingroom, and turning it into a bedroom has cost me about $2,000, complete with hardwood flooring. This alone has added $10,000 to the value of my home.

You've got to be kidding me. I wonder how many idiots he catches with that bullshit. But then I guess there aren't many people buying houses cash.

[Prof_Chomsky]

BartSimpson BartSimpson:

Part of the problem facing the financial markets is that it is no longer shameful to default on one's obligations. In days of yore it carried quite a social stigma if you skanked on your debts or went bankrupt - even for good reason. What tweaks me is that these people who have the ability to pay and who are bailing out of mortgages they undertook with open eyes are turning around and getting new mortgages sometimes in as a little as 18 months.

I'd say society has yet some distance to fall before the banks are forced to get back to the good practices of requiring 20% down on low priced homes and up to 50% down on high priced homes. Until such time as people are reuqired to invest in their homes they'll continue to just walk away from their obligations.

You know Bart, it's so rare that we agree on anything I felt I had to say we DO agree on this.

Obviously requiring huge down payments can't happen in isolation - other rules would need to be enacted (like say, making it illegal to own more than 1 "investment" property, otherwise well moneyed investors can price common folk out of the market with the high down payment demands), but I agree with you 100%. Let's savour the moment

[Prof_Chomsky]

andyt andyt:

Yogi Yogi:

People have to get away from the "I want the biggest, the best, Brand new, etc., and I want it right now" attitude, and learn to live within their means!
When I went into my bank to arrange to purchase my home, my 'investment councillor' tried to get me to purchase something 'newer-bigger',. Not what I wanted or needed at all. I remained adamant. Then, he tried to get me to finance it thru his bank. Again, not what I wanted or needed. He assailed me with 'all the interest' I would 'lose' if I took that money out. My reasoning was " why would I leave my money with you to earn me 3%, and then borrow the same amount from you at 7%??? Again, I remained adamant. I drew a bank draft for the full purchase price. Granted, the place needed/needs a lot of work, and I did get it for a good price, but it's paid for in full, and I am constantly adding equity with the work I have done/doing. Just tearing out the old livingroom, and turning it into a bedroom has cost me about $2,000, complete with hardwood flooring. This alone has added $10,000 to the value of my home.

You've got to be kidding me. I wonder how many idiots he catches with that bullshit. But then I guess there aren't many people buying houses cash.

Read Freakonomics. When incentives are misplaced we will ALWAYS get shafted. This sort of "advice" should carry jail terms, because it IS fraud.