Could this Home Loan idea work, would it save the current gen, and help the next gen. Thoughts, pros and cons.

[godly_wife]

@quint Oh no... Anyway

 

[iazlover]

@hotinco terrible idea. Essentially taxpayers would be funding people's debt binge.

if you want to leverage up to your eyeballs in debt, pay for it yourself. I'm not paying for your lifestyle choices.

 

[ericph]

@iazlover You realise most people can’t afford a basic house now, even if they work full time.

You think that’s a lifestyle choice?

 

[iazlover]

@ericph i agree with the difficulty. The solution is not to make debt cheaper by making money free. This would just increase demand, fuel more price increase and make the problem worse.

the solution is to increase supply and disincentivise house flipping and speculation.

 

[resjudicata]

@ericph reminiscent party scarce liquid naughty heavy cats different smell mighty

This post was mass deleted and anonymized with Redact

 

[godly_wife]

@ericph Yes, they either refuse to advocate for deregulate and the removal of government monopoly. Or they refuse to advocate for higher rates. Either way its their fault.

 

[corbinw]

@iazlover Yes people forget there is no such thing as government money . It is ours! In which they take from us to fund stupid ideas as this!

 

[usengidaniel]

@hotinco “Let’s call it GovBank”, I would have thought of it like the commonwealth of Australia creating a bank, so why not, Commonwealth Bank, or CommBank for short

 

[fromnorway]

@hotinco A goverment owned, not for profit.

The two biggest money wasters combined lol

 

[relicuk]

@hotinco

Once loan is paid off and house is owned outright, you must continue to pay same loan amount for a further 2 years. Which is net profit to bank

so you're talking about interest? But you also want a 0% interest loan?

And where will the capital to do the loan come from initially? Taxpayers? Investors? Or are you suggesting the gov't print more to fund this?

 

[hotinco]

@relicuk By not paying principle and interest, your $2000 repayment becomes only ~$1000. So it's more affordable, receiving cost of living pressures. Once house is paid off, continuing to pay $1000 for a bit longer is the same budget, but you are likely to be in a much better position by then.

As opposed to interest straight up, which makes it unaffordable for the majority of non affluent people.

As for where it comes from initially.. I dunno, maybe not spend $368 billion on 8 submarines?

 

[hpearson38]

@hotinco

As for where it comes from initially.. I dunno, maybe not spend $368 billion on 8 submarines?

Booooo!

 

[godly_wife]

@hotinco Why are statists like this.

There are three things that will fix the housing market.

Increasing interest rates by .75bps each meeting.

Removing Gov from the housing market in its entirety.

Deregulation and decentralization.

 

[dill]

@hotinco Trusting the government to fix things.

 

[resjudicata]

@dill We could trust the government to fix things if they could point to at least one thing they made better. Still waiting though.

 

[resjudicata]

@hotinco

It also makes customers not dependant on market growth so should slow down house price rises

As someone who owns property, sounds like a bad idea.

 

[jade1898]

@hotinco So basically Islam.

 

[hotinco]

@jade1898 How on earth, did u manage to turn a financial discussion into a religious/ethnic issue. Shame dude. Seriously. I'm happy for the idea to be stupid.. cos it's an idea.. but don't do that. If u don't have anything to contribute, move on.

Apologies to anyone reading that users comment. This concept was not, in any way, linked to anything religious or racial.

 

[lisavega09]

@hotinco Under Islamic law, you cannot charge interest on a loan as it is haram to make money from money.

Islamic law considers money as a measuring tool for value and not an asset in itself. Therefore, it requires that one should not be able to receive income from money alone. Interest is deemed riba, and such practice is proscribed under Islamic law. It is haram, which means prohibited, as it is considered usurious and exploitative.

The commenter is pointing out the similarities between your plan and Islamic law. Obviously that wasn’t the point you were making, however they do exist.

 

[hotinco]

@lisavega09 I get it.. just not necessary to bring into the convo. Especially in current climate.