FRIGTHENING

[volksdragon]

siercia and I were discussing these kinds of mortgages yesterday, and we both agree they're even more scary than waking Siercia up early on a weekend morning! EEP!

http://seattletimes.nwsource.com/html/realestate/2002347555_longtermloans26.html

Comments

[lorac.livejournal.com]

William was telling me that multigenerational mortgages are an option in Japan. I can't even imagine that.

[scirocco.livejournal.com]

OMFG. That's NUTS. How scary!

"Mom and Dad died. They left you a mortgage." HORI KURAPO!

[siercia]

The only way I can imagine that being useful is if i's mom and dad that have the finances to get approved, so they "buy" the house for their kids, and the mortgage transfers on their death without having to deal with estate crap.

IIRC

[fappyheet.livejournal.com]

...the Japanese have freaking long mortgages because land is incredibly expensive (relative to average earnings), they don't expect to sell it anytime soon, and the tax codes are waaaay different than here. Here's a scholarly excerpt:

"The land market in Japan is heavily influenced by tax rules. Years ago, the Japanese government established high taxes on capital gains on land to discourage speculation. For any land held less than two years after purchase the capital gain is multiplied by 150 percent and this amount added to current income in computing the sellers income tax. If land is sold two to five years after its purchase then 100 percent of the capital gain is added to income for tax purposes. Effectively this is a 90 percent tax rate on property held less than two years, a 75 percent tax rate on property held two to five years, and a 50 percent tax rate on property held more than five years. This tax system discourages people from marketing land and consequently those who need land for some project find they have to pay exorbitant prices to get someone to part with it. Very little land changes hands and then as often as not to relatives. Consequently the valuation of land is artificially inflated."

Similar to the US artificially deflating the cost of farm production with subsidies, I suppose.

[en-ki.livejournal.com]

I'm holding out for a mortgage that entitles the bank to a fixed portion of my crops and my services as an infantryman when they make war on other banks. If I get in on the ground floor, maybe they'll let me keep my car and drink at the manager's table in exchange for helping collect payments.

[kpht.livejournal.com]

i was thinking this morning about becoming a real estate agent. man, they have to make good money.