The 40 year mortgage is the new hype in Belgium!
Housing unaffordable
I have written about it before and today I do it again. Housing has gone 5X in price in the last 25 years, but wages have only risen with 75 % since then. So you don’t have to be a rocket scientist to calculate that housing has become a lot more expensive. And not just in rural areas but all over Belgium.
For most of the young couples it has become unaffordable to buy a house or apartment.
Marketing
So, the building sector, housing sector and the banks started with a marketing plan to keep the market up.
They introduced the 40 year mortgage. Up until today most of the mortgages are on 20 to 25 years. Exceptionally 30 years.
https://img.inleo.io/DQmTX34YuzBwAC99uX7JFe2AJJ1bWu2mgLXpzDopF4e8KE8/IMG_0114.webp
The marketing behind the 40 year mortgage is very ingenious. “Housing has become affordable again!” But what they don’t tell you is that you first of all get a higher interest rate than on 25 years. Sometimes up to 1 % higher. And they definitely don’t tell you the fact you pay a lot more interest over such a longer period of time. At current interest rates you pay your house two times!
It is all marketing and nothing structural is done to the shortage on the housing market. To the contrary, the banks earn a lot more in one contract, so they are actually the big winners. Not the customers!
What’s next? 100 year mortgages like in Japan?
Sincerely,
Pele23
Posted Using InLeo Alpha
mortgage = death contract in france
fiat money is one of the biggest scams in human history
Posted using LasseCash
Hey Lasse, speaking of scams how's your XEN minting coming along? You haven't posted about that since June 22. To show you how long that's been I got this XEN price chart off coingecko.com and marked June 22, 2024 when you last posted about XEN.
By the way, note that it is a "price chart" for the last year. Not a chart showing how XEN has been reducing its power consumption.
Hey Lasse, you are always bragging about how you are active on Hive almost daily (when you want to suck up to the whales or when you want to mix affinity fraud into your DHF proposals' FOMO pump and dump scams) but you haven't been active the last four days to answer my question and now I have another one.
How's your XEN minting coming along? Are you still eating bitcoin's lunch because you invested in XEN?
The housing market became ridiculous. I was delaying my first home (in life) purchase for a long time, trying to catch up with the price by owning crypto, but the recent price pump of real estate overtook even some meme token pumps! And the end of the mountain isn't visible at all... Along with that, what can be easily spotted is that the gap between rich and poor is growing and growing... Rich people have more real estate and keep buying (as they can afford), and pool people are taking mortgages like you shared, paying only interest for the first 4-5 years!!! Nobody says that you don't pay for your home at all in the first few years...
I have picked this post on behalf of the @OurPick project! Check out our Reading Suggestions Posts!
Please consider voting for our Liotes HIVE Witness. Thank you!
Yep, the first years are almost all interest, that’s how the game is played by the banks… Sadly