Reply to Why do people buy houses on the basis of 2 salaries instead of 1?

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[quote=Anonymous][quote=Anonymous]Why do people finance houses is the bigger question.

A person spends 2 TIMES the amount of the house just on interest on a 30 year mortgage.

HUGE SCAM. Predatory banks. [/quote]

Simple---unlike cars, it's nearly impossible to save and pay cash for most people, at least not until you are in your 40s+.  
Whereas with cars, yes it is not that difficult for most UMC+ to pay all or mostly cash for their vehicles if they want to.  Buy a car you can afford with a 3-4 year loan (at max).  Then continue to save the car payment until you buy the next car.  Key is to not buy that next car until 7-8+ years.  If you can make it to 10 even better.

In my experience, most of our cars still fetch 25-30% of what we paid for them over 8 years later (and 80-100K+ miles later).  So it's not that difficult to imagine paying cash for a car in your early 30s.   Once you do that, then you simply save for all future cars and include the 20%+ resale of your car into the new purchase price (but please dont' trade it in---car max and the like give you a much better deal without any hassle).

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