Only rent never has an upside... no chance to take a profit on your way out.
Discussion
True, it’s just an enormous amount of time in general. Lots of things could change in the world within a half century
There is definitely an uptick in the speed of general development now and the near future. The technological singularity is coming (unless aliens have a different opinion 😉)
When houses can be built quickly and for cheap, we're all fucked as property owners. And when quantum computers crack encryption we're all fucked as bitcoin holders.
Everything is a risk. The 50 year mortgage gives a chance to people who would like to take that risk but could not otherwise.
Obviously, a sound monetary system and plentiful high paying jobs would be preferable, but barring this... what could be done?
From this perspective, it definitely makes sense. It is a shame that so many housing developments are going up next to each other though.
Here in Maryland all the new houses/condos look identical and they’re ridiculously expensive.
Honestly, even if I could afford a $750k house, I wouldn’t want to see into my neighbors’ living rooms.
That’s just me, being frustrated at the same-ness of architecture these days.
I bet by 2075 society in general will be a lot different.
the concept of a mortgage will look nothing like what we’ve got now and this whole 50-year mortgage idea will be a moot point.
But who holds their property for 50 years anymore? Most will leave, maybe move up, maybe move due a new job... and if you do plan on staying, an extended loan may be an effective tool/strategy.
Besides, you can always pay more than you owe and reduce the time-span of your loan on your own.
But when people move, they tend to just get a new mortgage right? Maybe that one’s shorter because they’ve already paid a few years and perhaps better terms but they’re still mortgaged.
Yes! And with a 50 year mortgage, their monthly payments are cheaper.
Personally, if I could afford the 30 year, I'd still take the 50 (unless the difference in interest was substantial).
That way, I could choose to pay more, but not be forced to, in case the new job didnt work out, etc.
It just gives more leeway.
That would definitely be nice to have a bit of a safety net just in case things don’t pan out for whatever reason