subzero112001 t1_ito5seg wrote on October 25, 2022 at 1:59 AM

Reply to comment by thejoeymonster in Many countries have a "hidden welfare state" for incumbent homeowners, as governments subsidize homeowners through the tax system. The homeownership welfare state is strongest in the US and other Anglophone countries, but weakest in the Scandinavian countries. by smurfyjenkins

> buy outright and then rent back to us for the mortgage plus cost plus expenses and most importantly profit.

Saying that you pay more because someone else makes a business out of it is like saying that walmart makes more money cause it buys stuff in bulk then sells it to you at an increased price. Thats not really an argument but more like a method of making money.

>Aside from the loss of paying rent

But when you pay rent, you don't have to pay for repairs and maintenance. Heck, sometimes the utilities are included into that rent. Much cheaper than spending $20,000 on a new roof. Or paying $9,000 in taxes per year.

>we also lose in higher interest and insurance rates over those who can make larger down payment

The interest rates are based upon a system which is doing a person a favor. By loaning them money. It's not "Poor people pay more for a house", its more like "The more money you borrow, the more interest you'll have to pay". It doesn't matter whether they're poor or rich, the more money they borrow the more interest and higher rates they'll have to deal with.

Btw, a poor person can still get great rates if they have good credit.