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

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[quote=Anonymous][quote=Anonymous][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]

Well, in our case, the money we have invested in the market rather than using it to buy our house in cash has been increasing in value at well more than twice our mortgage rate, so even after you account for all the interest we'll pay over the life of the loan, we'll come out ahead. [/quote]

Did you account for the gain on the property value that you missed out on?[/quote]

How have I missed out on the gain in property value? I own the house and the mortgage is against the price we paid, not the higher price it could (in theory) get if we sold it. If we sell, we repay the loan, and we keep the extra value. It's true that if I didn't have the mortgage, we'd get a check for the appreciation + the mortgage cost at closing, but again, the money we didn't put into the house has been going up in value much faster than (a) our mortgage rate or (b) our house.[/quote]

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