Mika
VIP Contributor
A lot of people believe that buying a home is the safest investment. They believe you can start living in your own home by making $20-30K down payment and paying the mortgage for 20-25 years. Sadly, they don’t realize they are buying liabilities for 20-25 years. They not only have to pay a mortgage but also other expenses like house maintenance, insurance, taxes, etc.
When the developers build the house, they get a loan from banks, and banks make money by lending money to the developers. When people buy homes, they get a house loan and they pay interest on loans to the banks. So, ultimately, banks benefit from this market.
The housing market was created as a product for a bank so that they can lend money to make money. In order to lend money, the banks needed a product. Business is a product, a lot of people get a business loan, but it is risky because the business might not succeed. However, people with an income will pay the house loan. There are no risks for the banks.
When the developers build the house, they get a loan from banks, and banks make money by lending money to the developers. When people buy homes, they get a house loan and they pay interest on loans to the banks. So, ultimately, banks benefit from this market.
The housing market was created as a product for a bank so that they can lend money to make money. In order to lend money, the banks needed a product. Business is a product, a lot of people get a business loan, but it is risky because the business might not succeed. However, people with an income will pay the house loan. There are no risks for the banks.