Annuity and differentiated payments make the life of not very wealthy investors much easier. However, no matter how profitable your loan program is, it will not add money to your wallet. Actually, we are smoothly approaching the topic of today's lesson - mortgage slavery. This humorous term is used to describe a not-so-funny situation.
❝Mortgage slave is a humorous phrase used to describe people who spend a significant portion of their income on paying off their mortgage.❞
Significant loan expenses significantly affect not only the thickness of the wallet, but also the general well-being. The constant need to save has a negative impact on leisure time and emotional state, depresses a person and significantly narrows the circle of his possibilities. Such situations are not uncommon for regions with significant interest rates and high housing prices. In many countries, the vast majority of the population cannot afford to save enough money to purchase even one-room apartment.
A vivid example of a mortgage slave can be called an average... Chinese. Studies show that a large number of citizens are forced to give more than 70% of their earnings to repay the mortgage on real estate. This explains the amazing workaholism inherent in the entire nation, and crisis of new buildings, objects in which the population simply cannot afford.
To reduce the number of mortgage slaves and to increase housing affordability, some governments and organizations make concessions to citizens. They develop and implement programs aimed at easing the mortgage burden. Such programs may include reduced interest rates, the provision of subsidies for certain categories of the population, tax reductions and the construction of more affordable housing. Readers of THE Capital blog know another surefire way to combat the horrors of mortgages is to use strategy house hacking. And what would you do without our ingenuity?
Example of use:
— Eh, Dmitri, you are a slave to your desires.
- What do you mean?
— But I recently read about the term "mortgage slavery." This is when a person spends most of his earnings on housing mortgage payments.
- Oh, don't heal my wounds, because it's so hard to live.
Break the shackles of your slavery right. A wisely chosen option will allow you to pay a moderate price per square meter. If you plan to cover the mortgage out of pocket tenants, we will select an attractive object with a high yield.
