Please tell me that it’s a typo with a misplaced extra zero that says that $149 down gets you into a $700,000 house. That works out at about one week’s interest around 1%, but with no or such negligible payments of principal that the buyer can never own it. Which assumes that 1% was the going rate.
Then again, it’s probably not a typo. I know someone who travelled in America well after the sub-prime crash but who saw current ads still offering the same sort of impossible deals.
What I don’t understand is why people who lost (possibly overpriced) houses don’t buy them now when they’re dirt cheap.
I can’t recall exact figures, but I saw a TV program here maybe 8 to 12 months ago where an Australian interviewer spoke with a US real estate agent in a depressed area (can’t recall where) who had numerous houses for sale around $1,500 to $2,000 which he said would probably end up selling for half or less than half of that price. These houses had been bought for - I can’t recall but I think it might have been - around $50,000 with sub-prime finance.
The area was going to seed but if everyone who had bailed out bought now they’d be able to bring it back.
I’m assuming that what I’ve heard is correct, which is that in America if you default on a mortgage loan you can just walk away with no further liability as the loan is attached to the real estate. Here, you carry the loan wherever you go if it exceeds the mortgagee’s sale proceeds on the house.
I’ve known a lot of people who became politicians, and lot who didn’t but who were asked (including me), and I’d say that those who became politicians through a party youth machine are invariably dishonest, manipulative, worthless shits and those who come in older aren’t much better, but that those who came through community and non-party sources mightn’t have started out that way but usually end up that way, because politics is a shit game and you have to be a shit to play it properly.
And if they don’t end up that way they have no influence, but at least they retain their integrity. I can think of only two politicians out of the hundreds I’ve seen federally here who fit that bill, and none of the many more hundreds in my or any other state, largely because state politics is more able to conceal corruption and relies more on corruption than federal politics.