Mortgage - bondage without embellishment

2024 Author: Seth Attwood | [email protected]. Last modified: 2023-12-16 15:55

What does the parasitic mechanism of mortgages actually hide? How does it affect the prices of square meters and the structure of the housing stock of the country as a whole? Even those who haven’t stuck their heads in the mortgage loop seldom give a damn about the global effects of modern serfdom.

About the president's advice

The president personally "advised the people" to take out a mortgage as soon as possible.

And I personally say the following - the introduction of mortgages is no less sabotage, and for the population - and more than the privatization of the oil and gas industries, worse than the Chubais reform of RAO UES.

BECAUSE MORTGAGE IS A DIRECT REVIVAL OF CASTLE LAW IN THE FORM OF KABALA.

… At one time, when the mortgage saga was just beginning, I had a detailed conversation with Otto Latsis - a conversation typical in the sense that Latsis was a Soviet supporter of the market economy …, he was a proponent of market reforms without any understanding of how a market economy works.

I explained to him for several hours that the very fact of introducing a mortgage would not only enslave the people, but would make housing LESS AVAILABLE, because it would raise housing prices at least five to ten times at par and 15-20 times, taking into account mortgage payments. It seems that it began to reach him. Therefore, he published my article for a full spread. It was "Russian Courier", whose special correspondent I was listed in the United States.

And this was when the average price per square meter in Moscow was $ 700, in prestigious areas such as the South-West did not exceed $ 1000 and it was considered ugly expensive and was officially set by the state (in the person of the Chairman of the State Committee for Construction) the task of reducing this price to $ 300-350 per square meter …

Not only did it happen exactly as I predicted. Another consequence, catastrophic for the future of Russia, also appeared, about which I also wrote, but did not fixate too much on this: I wrote that - comparing, by the way, with American construction - that the Soviet high-rise buildings FOR MANY DECADES - at least 75 years, which they must serve - FREEZE LIFESTYLE: If today the housing rate per person is about 20 sq. meters per person, the same it will be frozen for 75-100 years.

However, things turned out to be even worse: the "mortgage price increase" plus bank robbery led to the fact that the standard of living will be frozen, EVEN Worse than in the USSR. I’m talking about the most popular today one-room apartments and "studios" of 20-30 square meters, ridiculed by Shuvalov, which MOST IS BUILDING TODAY, because - because of the mortgage - people can not afford anything more decent.

See also: It is quite possible to buy an apartment without a bonded mortgage

MY ADVICE - DO NOT TAKE MORTGAGES IN ANY WEATHER - unless, of course, the situation is desperate. For me it's better to live with my parents than feed the banksters. It is better in Russia now and not to buy housing at all: it is ten times more expensive than in Bulgaria and significantly more expensive than in the United States.

Do you want to feed - Medvedev and Gref? - Well, here I can not advise anything: you cannot forbid living beautifully. You do not want? - Do everything in your power to BREAK MORTGAGE BANKS.

However, there is only one option when a mortgage might make sense: if you can rent out an apartment for more than the mortgage payment plus the cost of keeping the apartment fit for rent. This is, so to speak, micro-personal interest. That does not negate the catastrophe with the deterioration in the quality of life due to the replication of squalor and freezing it for decades.

PS. For those wishing to better understand WHAT IS THE MECHANISM of price increases when introducing a mortgage, I recommend the following summary of my discussion with Latsis:

Mortgage as a robbery on an especially large scale

I once learned with horror that the Soviet "market economists" of the highest class did not understand at all how the market actually worked. Their brains are completely pierced by an unwarranted FALSE LIBERAL MYTHOLOGY, such as "competition improves quality," "private business is more efficient than the state," etc. An extremely characteristic story happened with the mortgage and Otto Rudolfovich Latsis. When the question of adopting a law on mortgages arose, I was really interested in this question and I quickly realized that the introduction of a mortgage is a colossal robbery of the population and depriving it of any future prospects.

I called Latsis, in whose newspaper I often published at the time, and set out my views. Latsis was not a stupid person. Not at all. But the arguments that I gave him, believe me, made a shock impression on him. And I realized that advocating mortgage - and he was one of the active and "long-term" preachers of it - that HE WASN'T EVEN THOUGHT ABOUT THE MARKET REALITY. He simply did not know how to count two-movers, but repeated TRUE liberal advertising slogans that had nothing to do with reality. And, believe me, he, it seems to me, really wanted people to do well, and did not at all strive for people to be robbed again. But the market was absolutely alien to him, the market economist, as a phenomenon, as a machine.

Here, in a simplified form, what I said to Latsis:

Imagine that 100 houses are being built a year, there is no mortgage, and there are 1000 people who would like to buy a house with different incomes from, say, 3 rubles to 100 rubles. Who will buy these houses and what will be their prices? Those 100 people out of a thousand who have the maximum funds will buy. Clear? - Let the average income of these top 100 people be 90 rubles. So the average price of a house will be 90 rubles.

This is very important to understand: if there is a spread of income in market conditions, there is a product, if there is less of it than there are potential buyers - and there is always less of it! - goes to the richest of those who wish. Moreover, the number of lucky ones will be determined by the offer - that is, the number of houses. This is obvious and corresponds to the elementary market logic.

Now let's see what happens if there is a mortgage and people can take out loans to buy houses (hooya is a universal mechanism that applies not only to houses, but also to any large purchases, for example, cars!).

Suppose, in order to take out a mortgage, you need a down payment of 20 percent. Let's think, what will be the price of the house in this case?

Suppose that, as in the first case, there are exactly 100 houses, and there were 1000 people with different money.

What people don't understand is that the same rich hundred will buy houses! - They will overtake everyone else in the market. This is for some reason a very difficult understanding: people look at the price, forgetting that the price is determined by the balance of payment demand and supply. But if you understand this, then understand. that the richest hundred will spend exactly the money they have for this business - that is, on average, exactly the same 90 rubles!

BUT WHAT SHE WILL BUY FOR THESE 90 RUBLES? - THIS IS A QUESTION! - House? - Not at all! SHE WILL BUY NOW NOT A HOUSE, BUT THE FIRST PAYMENT FOR THE HOUSE! - That is, now 90 rubles - this will be the price of the first installment, and this is only 20% of the price of the house!

In other words, the nominal price of the house will now become not 90 rubles, but 450 rubles!

But that's not all. The nominal price is the price at which the bank payment is calculated. Since you paid 20% of this price (now this 20% is like a house without a mortgage - 90 thousand), you take a loan from the bank for 450-90 = 360 rubles and pay 15% per annum, say 15 years. This means that for fifteen years you pay 360 thousand PLUS interest, which will amount to 380 * 0.15 * 15 = 360 * 2.25 = 810 rubles. In total, you pay: 90 rubles (first installment) +360 rubles (main loan) + 810 rubles (interest) = 1260 rubles. This is the REAL price of your home - that. for which without a mortgage you would have paid only 90 rubles.

So all the excess - 1260 - 90 = 1179 rubles from you STOLEN BY THE MORTGAGE BANK!

Why was it stolen? Yes, because the construction cost as much as 80 rubles (when sold for 90) and is worth it.

True, in reality, the restriction is sometimes different: the bank will not give you a loan in an amount exceeding five or six of your annual costs in general - that is, it will select a hundred lucky ones suitable for it itself, minimizing the risk.

See also: Lucky for you, Tatiana. Life is not in the "scoop"

Mortgage at 2% from Sberbank for the people … of the Czech Republic