Paying With Hot Air

I have never lived in a place which either I or my parents owned. I've been living in rented spaces my entire life. I remember filling out my refugee application in which I had to provide addresses of places where I lived during the previous ten years: from 1996-2006.

There wasn't enough space on the application for all the relevant info. I had to attach another sheet with over a dozen addresses. I had lived in different apartments in Saudi Arabia, different rooms in dorms in the USA and Canada, and then different apartments and houses in Canada.

I certainly see the appeal of owning a place. It would cut down on the constant headache of finding a decent space, packing up and then finally moving. However, one has to go about the process sensibly.

An Instapundit reader provides an example on how not to go about it:

The big light bulb moment for me came when a “My First House” buyer who lived in California, wanted to move to Denver and buy his first home. He had no job, no money down and really bad credit. Yet he was still able to buy a house for over $250,000 in Denver at 14% interest rate. Both his mortgage and down payment were financed at this rate.

Yikes. I wouldn't even consider getting a house if I couldn't make at least a 25% down payment.

Comments

[Mike T]

At 14%, the courts should leave both sides to each other. They should let the guy default on his loan, and let the loan shark call out vinnie and guido for a home inspection...

Not that that's not how this would likely end up anyway, knowing who usually gives loans like that...