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When I talked to my parents they told me most of their peers would pay off their mortgage within 20 years but maybe times changed, I don't know the data on that

When I talked to my parents they told me most of their peers would pay off their mortgage within 20 years but maybe times changed, I don't know the data on that. I am 30 now and I have trouble imagining being in debt for a time equivalent to my entire lifetime so far - just to live in a house. 15 years sounds so much more bearable emotionally but it's probably never gonna happen. You are obviously right about 2042 payment levels probably being different but that also hinges on inflation being positive - but I would agree that that's more probable than deflation.

ido 4y ago
I think you think that because buying (rather than renting) is not traditionally that common in German/Austrian cities. In other countries it's perfectly expected that you take a mortgage for 30+ years if you buy a house, it's the same* as paying rent for 30 years except you get to own the house at the end * i know it's not exactly the same, e.g. you need a downpayment and you have to pay for maintaining the house but it's not like you wouldn't have had to pay rent the same 30+ years had you rented instead of bought.
Handytinge 4y ago
> I am 30 now and I have trouble imagining being in debt for a time equivalent to my entire lifetime so far - just to live in a house. I can empathise. 10 years ago, I had friends in their early 20s "buying a house" (signing up to a debt of $1.2m+ dollars over 30-35 years for a $700k house), and could not see the value propositon for the emotional turmoil. Looking back years later, they don't seem so stressed by it, but it's definitely affected their ability to make decisions around their job, relationships, social life, etc. But they've all made pretty strong profits (on paper, assuming they ever sell). I bought a house for cash instead. The trade off of living further away is much better to me than feeling enslaved and not in control for decades. Buy some land if you want - a small package in a small town 30 minutes past all the developments. You'll probably find once you've paid off the mortage in 5-10ish years, the area has built up and you're in a non rural position with a good block.
- ido 4y ago
  Yeah but you’ve had to live out in the boonies for 5-10 years in the meanwhile. It can be fine in some situations but not in others. My kids are going to school now & I want them to get into good schools now, not in 10 years.

ido 4y ago

I think you think that because buying (rather than renting) is not traditionally that common in German/Austrian cities. In other countries it's perfectly expected that you take a mortgage for 30+ years if you buy a house, it's the same* as paying rent for 30 years except you get to own the house at the end * i know it's not exactly the same, e.g. you need a downpayment and you have to pay for maintaining the house but it's not like you wouldn't have had to pay rent the same 30+ years had you rented instead of bought.

Handytinge 4y ago

> I am 30 now and I have trouble imagining being in debt for a time equivalent to my entire lifetime so far - just to live in a house. I can empathise. 10 years ago, I had friends in their early 20s "buying a house" (signing up to a debt of $1.2m+ dollars over 30-35 years for a $700k house), and could not see the value propositon for the emotional turmoil. Looking back years later, they don't seem so stressed by it, but it's definitely affected their ability to make decisions around their job, relationships, social life, etc. But they've all made pretty strong profits (on paper, assuming they ever sell). I bought a house for cash instead. The trade off of living further away is much better to me than feeling enslaved and not in control for decades. Buy some land if you want - a small package in a small town 30 minutes past all the developments. You'll probably find once you've paid off the mortage in 5-10ish years, the area has built up and you're in a non rural position with a good block.

ido 4y ago
Yeah but you’ve had to live out in the boonies for 5-10 years in the meanwhile. It can be fine in some situations but not in others. My kids are going to school now & I want them to get into good schools now, not in 10 years.