how do people own homes in countries where the mortgage doesn’t exist?
In: Economics
I think people often forget how in the USA, as little as 20 years ago, owning a home was not an easy thing to accomplish for most people. Even with mortgages, you generally needed generational wealth or it was a serious accomplishment to do without. There used to be the idea that you’d save up for decades to buy a house, because even having $30,000 cash down payment on a $100k mortgage is quite the thing! How many people can say they’ve literally had 30 grand in savings at any point in their lives? And that’s for only a 100k house! And then the idea of “credit” was a black art.
Likewise, in other countries without a similar financial system to ours, it’s usually generational wealth. And that’s why it’s much more common for larger families to live together and for people to build their own houses by hand and cobbling together additions.
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