50-Year Mortgages That Children Can Inherit

Hilarious. Do governments not realize when you broadly offer things that improve affordability it just increases prices but doesn’t really get people into houses (except for a few first movers)?<p>It’s like fighting inflation by giving out money.<p>Canada offered 40 year mortgages (federally insured) and then quickly stopped when prices jumped with people maxing out their “lower payments”.

Beautiful title and framing.<p>1) It allows room for people to jump conclusions, get emotional and generates views.<p>2) The scheme is never explained in the news.<p>These long mortgages exist in Japan and Sweden at least. Both have 100-year mortgages. It&#x27;s like renting in that you pay monthly, never fully own. It&#x27;s like owning that you have owners rights. Your children have a choice when inheriting to continue the deal or give it up.

There is an old, fundamental principle that you cannot inherit debts from anyone, including your parents. Instead, when someone dies outstanding debts are recoverable from their estate, i.e. by selling their assets, which includes property.<p>They say this is &quot;early stage proposal&quot;, which I interpret as being fluff that will lead nowhere.

Piker. Japan tried 100 year mortgages: <a href="https:&#x2F;&#x2F;www.sciencedirect.com&#x2F;science&#x2F;article&#x2F;abs&#x2F;pii&#x2F;1061951895900047" rel="nofollow">https:&#x2F;&#x2F;www.sciencedirect.com&#x2F;science&#x2F;article&#x2F;abs&#x2F;pii&#x2F;106195...</a><p>Good for the bakers&#x2F;lenders as they can collect way more interest for the same property. Wonder how hostile the anti-inflation clause will be.

I first heard about a &quot;50 year mortgage&quot; in California about 8 years ago. I thought it was a joke about California&#x27;s high cost of living. With this article, I looked at Google trends[0] and I&#x27;m very surprised to see very high interest in this.<p>What is the benefit of a 50 year mortgage from both sides? Forgive my lack of understanding in this area, but it seems like a debt that will never be paid off, unlikely to mature, or a very, very risky bet someone.<p><a href="https:&#x2F;&#x2F;trends.google.com&#x2F;trends&#x2F;explore?date=2014-06-03%202022-07-03&amp;geo=US&amp;q=50%20year%20mortgage" rel="nofollow">https:&#x2F;&#x2F;trends.google.com&#x2F;trends&#x2F;explore?date=2014-06-03%202...</a>

Why not go for 1000 years mortgages or more? Serious question. Don’t stop going up in years until the monthly instalments are fractions of a cent. What could go wrong?

Government gets an indirect property tax in the form of mortgage interest. Maybe less awkward than the central bank owning its own debt. The people get a leveraged inflation hedge. but it seems to be going in the opposite direction making inflation worse.

This sounds like the real estate industry made new friends with financial engineering industry and they are about to have their first baby. Can’t wait to see the results in 7 years or so.

Giving more people easier access to debt is a recipe for disaster.

is this the solution to not being able to afford a house in your lifetime.<p>how about preventing buy to let, preventing owning more than 2 property, control rents, build more affordable housing.