Quote:
Originally Posted by DareRing
Credit is the reason it's so unaffordable in the first place. How else could a house that takes a half dozen guys a few months to build take 30 years to pay off? People are essentially bidding their time against eachother. The longer mortgage lifetimes are offered, the more expensive housing will become.
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Credit might play a small part in it, but it is not the sole reason things are expensive. You can also blame our standard of living on it. When you make more money things will tend to cost more. There are parts of the world where people live on 1K a year. But if the average family makes 44K a year people want to maintain that standard of living so they charge more if they have a business and they look for the best paying job if they work for other people. Sure if you buy a house for 200K and over the course of a 30 year mortgage you end up paying 450K for the house after all the interest the house is expensive, but without that credit the people would not have been able to buy that house in the first place and the bank owners want to maintain their high standard of living so they are going to charge as much interest as the can, as will the carpenters and the suppliers and so on.
If we went to non-credit way of life where nobody had a credit card, nobody got a mortgage or a car loan or took out a loan to buy anything this country would quickly degrade into something that looks a lot like a 3rd world shithole.