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"and pay off the mortgage" In most large metro areas this is impossible for ordinary mortals without a liquidity event or a very high income. We are still ver

by api 11y ago

"and pay off the mortgage" In most large metro areas this is impossible for ordinary mortals without a liquidity event or a very high income. We are still very much in a housing bubble being driven by insanely cheap money -- near-zero or even <0 effective central bank interest rates. The only places housing is affordable are places where there are no jobs.

hga 11y ago
"No jobs" strikes me as too strong a statement. Too few jobs from too few employers, especially specialized one like ours, is probably more accurate. And therefore a potential need to move to another area where there is a job needs to be factored in.
claar 11y ago
I don't understand what you mean. Paying off the mortgage is a big reason to buy vs rent. If you can afford the mortgage payment, then in 30 years, you own the house. If this is impossible for ordinary mortals, how are ordinary mortals buying houses? I ask as a small city homeowner, so forgive my ignorance of the metro area real estate world.
- ryandrake 11y ago
  I don't think "ordinary mortals" in, for example, the Bay Area, consider their mortgage something they'll ever pay down completely. 30 years may as well be forever, and a lot of people I know refi over and over to stay on the treadmill. This is why in a market downturn, people end up underwater, losing the house.
a_c_s 11y ago
"ordinary mortals" who can make their payments on a 30 year mortgage will have it paid off in 30 years.
- bshimmin 11y ago
  Exactly this - if banks didn't think people could pay off mortgages, at least some chunk of the people, they wouldn't be offering them. I agree that buying a house in central London (for example) is probably outside the reach of mere mortals, but I think that problem occurs several steps before the "paying off the mortgage" bit applies! Many very interesting replies to my initial comment; it certainly is useful to see things from a different perspective.

by api 11y ago

hga 11y ago

"No jobs" strikes me as too strong a statement. Too few jobs from too few employers, especially specialized one like ours, is probably more accurate. And therefore a potential need to move to another area where there is a job needs to be factored in.

claar 11y ago

I don't understand what you mean. Paying off the mortgage is a big reason to buy vs rent. If you can afford the mortgage payment, then in 30 years, you own the house. If this is impossible for ordinary mortals, how are ordinary mortals buying houses? I ask as a small city homeowner, so forgive my ignorance of the metro area real estate world.

ryandrake 11y ago
I don't think "ordinary mortals" in, for example, the Bay Area, consider their mortgage something they'll ever pay down completely. 30 years may as well be forever, and a lot of people I know refi over and over to stay on the treadmill. This is why in a market downturn, people end up underwater, losing the house.

a_c_s 11y ago

"ordinary mortals" who can make their payments on a 30 year mortgage will have it paid off in 30 years.

bshimmin 11y ago
Exactly this - if banks didn't think people could pay off mortgages, at least some chunk of the people, they wouldn't be offering them. I agree that buying a house in central London (for example) is probably outside the reach of mere mortals, but I think that problem occurs several steps before the "paying off the mortgage" bit applies! Many very interesting replies to my initial comment; it certainly is useful to see things from a different perspective.