A house down the road. Sure it’s nice but it has absolutely no yard and you can’t have a pet or anything that makes noise or the neighbors will quickly complain.
So just almost 8000 a month! I used to pay $5000 a year in taxes in 2005, so it’s like paying property taxes every month! Yey! So affordable!
Seriously, I don’t know what sort of fool would be convinced to move into any of these hundreds of houses that are basically 1.5million dollars. They would need to tare them down and built into mini hotels. Problem is that there are literally no local tourists attractions. It would have to be a college dorm house or multi-family slumlord special.
I’m old but it entertains me to see people saying 7% is outrageous when I remember the rates in the early 1980s.
Don’t get me wrong, it’s crazy, it’s just less than half of what rates were there for awhile. One of those “back in my day we walked to school in the snow, uphill both ways” type things.
Blew my fucking mind when we got a 4% back around 2010 (year guesstimate, too lazy to look it up)
Yeah but in the early 1980s, high interest rates were manageable because the median home price ($70,000) was only about two to three times the median household income ($22,000). Today the median home price is past $400,000 while median incomes are around $80,000, about five to seven times annual income. The high interest rate was painful, but it applied to a much smaller loan balance.
It’s a house in the 80s, Michael, how much could it cost, $10?
Yeah, but nowadays 7% it’s more like overdraft interest, or at least car loan. At least in Germany mortgages are well below 4% (were below 1% in the late 2010s).