An interesting article in the economist about the US economy says that houses for sale in USA now often display the "no-tricks" monthly mortgage payment. This used to be taboo, says Mr Hilton, boss of Meritage Homes, but nowadays people are looking for a place to live, not an investment, and want to compare the cost of buying the house to renting a similar place.
No tricks? Mr Hilton uses as his example "eg $1,480 per month for a three bedroom two bathroom new Harrison home". The internet tells me that an equivalent home in Pensylvania would rent for $1,600 per month, which makes buying sound a great deal. But the figure quoted equates to a $200,000 loan at average rates. In other words it looks as if he is advertising the repayments on the house alone, not the land, whereas most people want a home on land. If so, his salespeople need to stress that the purchaser will also have to buy, and presumably borrow money for, the land for the house which is often worth more than the house you put on it!
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