When buying a new house in the States, how many years of warranty do you get?

[lebkuchen]

A German builder must, by law, provide five years of warranty on the house/flat/apt.

Also, all German mortgages are fixed, so there are no sudden increases in monthly mortgage payments.

The interest rate with nothing down is approx. 4.85%. What is it in the States?

German laws are extremely protective of the buyer, and Germans are proud of these laws. Tent cities sprouting up around German cities due to a mortgage crisis would be unheard of.

Why can't the US get it together and protect its own citizens?

[baldguy]

1. Well, they're all just a bunch of damn socialists over there!

:sarcasm:

[pepperbear]

81. you know what I never understood about that rightwing argument?

the fact that there are plenty of european businesspeople making tons of money.

[juno jones]

2. We keep asking that ourselves. N/t

[Tikki]

3. Ah, but that is so Old Europe....

in this NEW world....Americans get screwed over and over and like it so much
they continue to vote for them that screwed 'em.


Tikki

[selador]

4. but that's not a GOOD thing

"Also, all German mortgages are fixed, so there are no sudden increases in monthly mortgage payments.
"

i believe in consumer choice. the more, the better. there is NOTHIGN wrong with (it's superior in fact) to have a variety of mortgage structures to choose from - fixed 30, fixed 15, ARMs, etc.

i would rather have choice than have the govt. DICTATE that i can't choose an adjustable mortgage structure. i don't want govt. overregulating and diminishing choice

what is key is that with MORE choice comes MORE responsibility to choose wisely.

it is not WISE to use ARMS as speculative vehicles, to assist in overleveraging, etc. there are COSTS and BENEFITS to different vehicles. see: caveat emptor

personally, on the last house i chose a 15 yr fixed. that is MORE conservative than what most people choose - a 30 yr fixed.

given certain other circumstances, there is even a reaosn to choose an ARM or even a interest only loan

just because some peopel CHOOSE to act irresponsibly does not mean govt. should diminish the choice.

the same holds true with ANY investment vehicle. i can choose VERY risky stocks, or very safe stocks.

i can choose (not that i would) to buy crap penny stocks with margined money

that does not fit MY risk/reward parameters, so I don't do it.

otoh, i often use significant margin to trade natural gas or index futures.

i shoudl have that choice.

with greater choice and freedoms comes greater risk, but also greater opportunity. freedom and choice are a TWO EDGED SWORD.

the more choices you have, the more opportunity you have to make a bad decision. but that is preferable ot have too much dictated by govt.

[baldguy]

10. The American financial system is designed to squeeze every last dime of income out of the worker.

Maximize debt and minimize savings. There is no consumer choice involved if consumers are only offered bad deals. Thats all an ARM is - a bad deal for the consumer.

The federal govt should be there to protect the consumer & be there to ensure that multi-national multi-billion dollar corporations don't bleed people dry just to make a profit.

The freedom of the US market is the freedom to starve and nothing more. We should treat our citizens better then that.

[JeanGrey]

11. Not necessarily. We took an ARM against our paid for house

to buy another house outright. The ARM had no increase in interest for five years. Within 10 months we sold the house, and paid off the ARM. A bad deal? Hardly. The only time ARM's are bad are when you a) shouldn't be buying a house in the first place because you can't afford it and b) are buying a mansion that you can't afford.

[baldguy]

16. The vast majority of ARMs are offered to people who don't qualify for a standard loan

or are buying a home they normally wouldn't be able to afford.

And now the home owners can't afford them. That's why Bush is giving Bear Stearns $30 billion-with-a-"B".

No thought at all of giving any relief TO THE HOMEOWNERS who were scammed. After all, it's their own fault that they were scammed. They should have known that their ARMs were bad deals, even thought they had no other option offered to them.

Bullshit.

[selador]

17. and again

a home is the single biggest investment for almost ANY family .

there is a responsibility to choose wisely that rests with the consumer

the point is (see my other post) it's not "good" to ONLY have the choice of a fixed loan

choice is good. but with choice comes the need for RESPONSIBILITY.

i have freedom in my investments. i want to retain that freedom. with greater freedom comes greater risk

that's a necessary truth.

i don't want to sacrifice all my freedoms for increased safety. that is the siren call of every govt. tyrant "we're here to protect you from yourself" . govt. is always at its most odious when it attempts to protect us from ourselves. the other indication is when it does something to "protect the children". this is also a frequent excuse to impinge on liberty.

caveat emptor.

[lebkuchen]

22. With greater risk comes tent cities in Los Angeles

Where is your love of fellow Americans? What do you do when you pass a tent city? Give them the finger with a "TOO BAD, SUCKERS!"

If not, then what is your plan to help these people, for the good of America?

[Quantess]

It's true that ARMs managed to work well for some borrowers.

But only if they got out in time... say, by a year or 2 ago.

[JeanGrey]

73. No other option? Oh come on now. They didn't know they

couldn't afford a fixed rate mortgage? Sure they did. I had a friend who did it and she is in real estate for god's sake.

[Gormy Cuss]

78. I believe that baldguy is referring to the steering to ARM over fixed-rate,

and the steering towards subprime for borrowers who would have qualified for prime rate mortgages. Yes, in fact, in many cases of first time, lower income borrowers they did not know that they would qualify for a fixed rate product because it was never offered and not coming from a history of homeownership, many didn't even know to ask.

[Name removed]

14. Deleted message

Message removed by moderator. Click here to review the message board rules.

[lebkuchen]

23. Why would taxpayers want to encourage citizens the freedom to risk everything?

Why not guarantee, instead, the guidance not to lose everything, the sure deal?

It's not a matter of responsibility. Soldiers get scammed of their combat pay all the time from US agencies outside the base gate. Is it soldiers' responsibility to act "responsibly" or the government's responsibility to protect these 20 y.o.'s et al of their hard earned cash?

[Name removed]

36. Deleted message

Message removed by moderator. Click here to review the message board rules.

[lebkuchen]

38. You're one of those "Up is down" and "Black is white" Americans

which is why I'm glad I'm across the pond, observing America's "free to be as feudalistic as we wanna be" breakdown from afar.

[selador]

39. no, i'm one of those persons who believes in freedom

if you want to be a serf, more power to you

there is nothing wrong with imposing reasonable regulation - for example: laws against usury.

there is a BIG problem with limiting freedom to choose and to manage one's own risk profile

[lebkuchen]

40. Germans are currently enjoying their two week spring break freedom

which came after their two week winter break freedom, but precedes their four week summer break freedom.

Do you have that much freedom, paid?

I'll bet Americans like yourself hate it when that much paid vacation time is forced upon them.

[selador]

41. great

i have the option to CHOOSE a career that has more vacation time (like teacher or seasonal fisherman) or less

i chose law enforcement. i get over 3 weeks a year.

less than germans. more than most. and i can work overtime for more comp .

i like having freedom of choice

i also enjoy having the freedom to work overtime.

i agree that it's a good idea to have SOME minimum vacation for fulltime jobs. but don't think for a second it's not a cost.

unions for example, are useful in advocating one side, management the other

[lebkuchen]

43. "some minimum vacation time for FT jobs"

What's "enough," per year?

[selador]

44. i don't know

do you?

[lebkuchen]

47. I'm asking you to define your own "some vacation time"

I agree with the European standard. Only a masochist wouldn't.

I think US "law enforcement" need more than three weeks per year, to encourage less tasering of the civilian population.

Sounds like you're also saying PT workers should get no time off if FT workers are allowed "some."

[Name removed]

49. Deleted message

Message removed by moderator. Click here to review the message board rules.

[lebkuchen]

62. So you agree PT workers should also have paid leave.

Great!

You are coming around!

[unapatriciated]

79. lol less tasering is what we all need.

What selador fails to understand is we have been in a race to the bottom for years. Big Box stores have set the standard by giving just enough hours to keep their employees PT. This allows them to escape paying for benefits and shift it to the community via government programs. Yet they have no problem accepting all those profits from that same community. Since he mentioned he is in "law enforcement" it's a safe bet he belongs to a union and most union members realize it is more than "bad planning" on the part of the homeowner caught up in our predatory loan system. There are many who were forced into a "predatory" loan due to economic or health care related situations. What does our government do? Bail out the corporate owned banks and let the community crumble much like the Big Box Store strategy of burn and pillage.


He's got his to hell with everyone else.

[DadOf2LittleAngels]

46. Forget it, everything in Germany rules

and everything here sucks, you'll never get through to him...

Freedom is not relevant just how much stuff you get..

[selador]

48. thank you

i seriously think that many people don't understand the issue of tradeoffs.

if there are two concepts one should have in the back of one's mind when looking into any policy issue it is - what are the tradeoffs, and what possible unintended consequences could result.. with recognition that the latter is often recognizable only in hindsight

[lebkuchen]

52. Isn't it unAmerican to consider so many citizens worth the risk of your choices?

Homeless (uninsured, jobless, poor, uneducated, et al) people are not "unintended consequences" when considering US laws that don't protect its own citizenry. They're guaranteed.

Oh well. Feudalism is the price of "freedom."

[DadOf2LittleAngels]

58. Tradeoffs

http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=59947

"The parents of Melissa Busekros, the German teen who was taken by police from her home and placed in a psychiatric ward because she was home schooled, now are being billed by the government for the cost of her forced stay, according to attorneys who are working on her case"

No evidence of Abuse, Neglect... Her parents just dared to have their own faith and wanted to school their own children... Nazi era laws are still being enforced in Germany today so please no lectures about the perfection of German freedom..

[Hannah Bell]

99. Why can't I find a single news article about this girl

except in world net daily & the like?

[DadOf2LittleAngels]

54. I call it the George Bush question

What would George Bush do with this power... That about covers the down side :)

[lebkuchen]

50. Jealous of a 5 year housing guarantee?

What American wouldn't be.

[DadOf2LittleAngels]

53. No, Im not...

I had two years coverage on miner issues and Ten years on major construction deficiencies via Minnesota 327A.02 STATUTORY WARRANTIES..

So no I'm not jealous of Germany's offerings...

[lebkuchen]

55. Wow. Ten years guarantee....

When California hears about this, there will be a mass exodus to the Lakes.

[alarimer]

72. I would be more than happy to have that kind of freedom forced upon me.

Instead of the wage slavery I am currently forced to endure and will until I retire.

[eridani]

96. Compared to average Europeans, we're the serfs n/t

[DadOf2LittleAngels]

15. Fundimantally flawed assumption

There is no consumer choice involved if consumers are only offered bad deals. Thats all an ARM is - a bad deal for the consumer.

--

The first guy I went to for my lone kept trying to sell me arms so I shopped around found a great guy who got me a 30 year fixed only .5 percent higher than the arms.. If you go to a dozen guys and cant get a fixed because you have bad credit, no savings, or maybe low income maybe that should tell you something.

[selador]

18. your is fundamentally flawed

you don't understand economics

ARM's are not ipso facto bad or irresponsible.

they should be a niche vehicle for certain situations. if you only plan to stay in a residence for a few years, for isntace, they can offer a compelling alternative.

you are correct. if you can't GEt a fixed, then in many circ's you probably shouldn't get an ARM . but that should be YOUR decision

amazing the amount of paternalism that you and many others display towards the individual consumer.

fwiw, i chose an even more conservative option on one of my previous houses (which i recently sold. i currently only own one). a 15 yr fixed.

the choice was mine, and should be mine.

[DadOf2LittleAngels]

19. I never said arms were bad

I said if all you could get is an arm you should really think about weather or not buying a home is for you.

Amrs can work but when the rates were so low they had nowhere to go but up anyone who planned on more than two years in a home were really playing roulette..

I was not saying (a) arms are bad, (b) they should be illegal, or (c) people are so stupid they should be stripped of freedom...

"fwiw, i chose an even more conservative option on one of my previous houses (which i recently sold. i currently only own one). a 15 yr fixed."

BTW I would consider a 30 year fixed more conservative than a 15 year because it cuts payments nearly in half. You can still pay it off in 15 years if you so choose but if your situation goes bad you can also still pay the minimum..

[selador]

20. good post

"I said if all you could get is an arm you should really think about weather or not buying a home is for you.
"


that i agree with.

"Amrs can work but when the rates were so low they had nowhere to go but up anyone who planned on more than two years in a home were really playing roulette.."

even worse are (idiots) who got home equity loans with adjustable rates.

so, they get a double whammy. they are borrowing against equity that is at risk of dissapearing in an overextended real estate bull market, AND they face itnerest rate risk on the loan itself.

but plenty of idiots/irresponsible people did this.

"BTW I would consider a 30 year fixed more conservative than a 15 year because it cuts payments nearly in half. You can still pay it off in 15 years if you so choose but if your situation goes bad you can also still pay the minimum.."

the advantage to the 15 yr fixed is that i locked in a loan for 50 basis points less than the cheapest 30 yr. it is true that GIVEN the same interest rate, you can just overpay the 30 and get a similar payoff structure.

my point is that i could easily afford way more house with even a 15 (and far more even then with a 30), but using the 15 yr,and a smaller loan (on a smaller house) i made a conservative loan, with a structure that gave me lower interest, which meant i was paying more principal per payment, given the same payment (since even if i got the 30 yr and overpaid, i would be paying more in interest)

but your point is valid.

good post

[lebkuchen]

24. As long as you don't come crying to the govt. later for assistance, right?

What about all those Americans who don't have a house to live in?

[DadOf2LittleAngels]

60. NOthing against welfare and helping the homeless

But the only way to insulate people from their own folly is to strip them of freedom and I kinda like my freedom..

[jmowreader]

71. The ARM was designed for someone who's basically renting the home

I have lived on many military bases. The population on most of them is largely transient. If you KNOW you're going to sell the house in four years, because your boss is going to hand you a plane ticket and send you to the other side of the country, ARMs are just fine.

The corrupt lenders who caused the current disaster sold ARMs to people who planned to live out their years in the home. The only way this works is if you KNOW you're going to be making enough money in the future to re-fi the house with a fixed note. Husband and wife both work at Sears? I'm gonna tell you the dirtiest little secret of retail: it's extremely difficult to get out of that field once you start working in it, because most people think that if you had any skills at all you wouldn't be in retail. It took me two years of very serious effort to do it. Anyway, a dual-retail-income couple is NOT going to be making a shitload more money next year unless a miracle happens.

[Lorien]

64. Ya know, don't even bother. He's a one trick pony

He's here to waive the flag, cheer the corporations, and try to stir things up a bit with disinformation and mind numbing ignorance of the rest of the planet. Hell, this is the same poster who said that there has been "over 14 billion" hate-speech cases filled in the U.S.

:eyes:

[DangerDave921]

84. Oh come on!

No one made anyone get an ARM. It was by CHOICE. Remember that word? It's a pesky little word that means you have freedom to choose what you want. And for some, an ARM is a perfectly fine choice IF you have the income to handle the changing rates. It is NOT for those who just want a smaller monthly payment the first couple years so they can afford a bigger house.

[lebkuchen]

21. Bush says he prefers that Americans have choice over their retirement

However, many Americans are not educated about the markets, the markets are yoyoing drastically as I type, and what is certain is that we're all getting old, some of us are jinxed with bad DNA, all of us need medical care, many of us for life.

Why gamble with what is certain for the "luxury" of choice when all taxpayers foot the bill? "Choice" is just another name for "scam."

The German govt. doesn't want to get into a blame game when citizens guess wrong with their housing finances. The job of the German govt. is the health and welfare of its citizens, not Viva Las Vegas.

It is cheaper for the govt. (i.e. taxpayers) to have everyone housed and encouraged to save in ways that don't jeopardize their entire future rather than setting citizens up for possible failure and finger-pointing "sorry, you're up Shit Creek" later on.

Not everyone is as brilliant as you are when it comes to money.

Why should any country embrace a divide and conquer (of the weakest) system? What's wrong with building a system that guarantees the safety of all its citizens in their decision-making?

[DiverDave]

42. Spoken like a true fascist

It's all choice, eh?

Bullocks, they GIVE you your only choice.

Anyone that says different is in bed with them...

[rucky]

68. Beat 4.85% fixed - no down, no MI...

then get back to me.

[readmoreoften]

91. Are you one of those new crossover Democrats we keep hearing about?

Head Mr. Logic,

(1) I bet your mortgage doesn't beat 4.85%
(2) The whole world doesn't revolve around you.
(3) Not everyone's mommy and daddy is a investment broker who can teach them these things.

[bdamomma]

5. US will not be able to get it together until those who are in abuse of power are out.

we hate them, but again, if this was happening in Europe these thugs would be long gone.

[DadOf2LittleAngels]

13. Oh yea not precedent

for Europe letting fascist rules have power for any length of time /sarc

[LanternWaste]

25. Europeans seem to have learned, unlike us...

Europeans seem to have learned, unlike us...

[lebkuchen]

32. The housing laws vary in Europe from country to country

Buying in countries like Spain, for example, is an adventure, with much less consumer protection than in Germany.

[DadOf2LittleAngels]

34. Its only been 60 years

Lets not assume they are beyond stupidity yet..

[LanternWaste]

37. Well, they're certainly not beyond us

Well, they're certainly not beyond us in the Stupid Quotient at this point in time... I'm thinking the Stupid Quotient is another thing "We're #1!" at.

[enid602]

6. fixed-rate

I think doing away with adjustable-rate mortgages is a good idea. It might keep people from buying that more expensive house, but that's not necessarily a bad thing.

[lebkuchen]

26. The vast majority of Europeans live in 100 quadrat meters or less

I suspect Asia's living situation is even more reduced than that. Maybe the fixed rate and affordable expectations is the answer to the tent city situation in the US?

[enid602]

30. housing

100 sq meters is a nice-sized living space, though it might be a bit cramped for a family.
There is only one tent city that I've read about; 300 people living in an area of tents and mobile homes 50 miles east of Los Angeles. I certainly hope they don't pop up as a manifestation of our housing woes.

[lebkuchen]

35. It's a small kitchen, two bedrooms, and 1-1/2 baths

That's small by US standards.

As for the 1/2 bath, most Americans would have a rough time working their way in edge-wise and getting the door locked behind them.

[enid602]

56. convenience

I guess more importantly, is it close by and convenient to cultural venues, employment and shopping? Most Europeans I know live in Spain and France, and I must admit I was a bit shocked to see that they tend to live in large, anonymous apartment blocks far removed from either Madrid or Paris. Of course, train service is better there.

[lebkuchen]

59. A lot of those apartments are subsidized housing

though w/the high population of Europe and little space i which to build...

Building is highly controlled in Germany to keep the prices of homes affordable.

[Diclotican]

61. ebkuchen

ebkuchen

Maybe it because we for the most part don't "need" 1100 quadrat meter big houses.. My home, was possible little over the ordinary, it was, when we had build it up to where it was when my foster partents sold it off, so they could get a cheaper, more to older peoples tastes than 225kvm. And I for one think about it as BIG... But I know, If I ever get the money, I would more than anything get that house back... :evilgrin: Not because it was BIG, but rather because it was my home for most of my kid life... And I had all the woods I needed, when I was young... I really miss wake up and se that big tree in the window..

But we don't shop the house at 225kvm big.. When we moved in, in 1986, the house was ca 100kvm, and it was a house with some need to be fixed... After maybe 10 year, and a lot of savings, and then buildings our home, our house, was ca 225kvm big..

Today, my only surviving foster parent are living on 110kvm big apartment, no frill, no "luxes" but she have what she need, and then some more...

I on the other hand, are living at 42kvm big home. Nothing big, but big enough for me and my need.. If I get a family it may be little to live under, but as a single man, 42kvm are more than enough... A bed, Kitchen, living rom, a bathroom with toilet, and a rom to have stuff I don't use regularly.. And then the door.. Don't need much more. Even that I miss a bigger living rom;)..

Diclotican

Sorry my bad english, not my native language

[sinkingfeeling]

7. You're speaking about the US of A! We will probably never get it together.

Most bonded builders of new homes offer a 1 yr. warranty. Sellers of private homes can also put a warranty on the appliances, structure, utilities, etc. as an enticement to buyers. Today, a 30 year fixed in running 6.41% and a 15 year is 5.8%.

[lebkuchen]

27. Thanks for the answer to my question.

No money down is a percent lower in Germany. In how many years it is paid off doesn't really matter in Germany for the interest rate; money down does.

There is the possibility of the barsparvertrag, its history set up to provide people, such as young couples, with little money the opportunity to buy. They must save extra money in a low interest savings account, in addition to their mortgage, to offset the risk of the bank loan.

[The Wielding Truth]

8. As long as a quick buck and no accountability are the norm,

we won't be able to change things. The solution lies in an attitude adjustment through a campaign of restraint and common sense.

Having pride in responsible lending is a notion that must out shine the greed that has strangled our economy. A free economy should not be equated to a freedom to cheat and steal and who ever comes out with the most is the hero.

Where in our American society is the basic founding idea of equality? Democracy and capitalism need not be exclusive. With governmental restraints one can flourish within the other.
Balance is the key. Without it, greed can certainly outweigh responsibility as seen in the corporate
id that has replaced Our Constitutional respect of persons.

[lebkuchen]

28. I agree with you.

great response.

[The Wielding Truth]

33. Thank you. I have read your posts and that means a lot to me.

[DadOf2LittleAngels]

9. Loaded Question meet bird shot answer ;)

"A German builder must, by law, provide five years of warranty on the house/flat/apt."

As a federal republic that is going to vary in the US, I know NJ has 2 years and CA has five

"Also, all German mortgages are fixed, so there are no sudden increases in monthly mortgage payments."

Are you saying that there is no way to get an adjustable rate mortgage in Germany? at all?

As to the US nobody tells you what kind of a loan to get, many people (my self included) decided to pass up the big savings an arm can offer you for the first five years so that we ould not have to worry about a spike in interest rates.

"German laws are extremely protective of the buyer, and Germans are proud of these laws. Tent cities sprouting up around German cities due to a mortgage crisis would be unheard of."

Maybe I have been missing news here (lord knows with my kids and health issues its possible) but where, exactly are these tent cities in the US?

[baldguy]

12. If you hadn't heard...

http://www.latimes.com/news/local/la-me-tents18mar18,1,5139391.story

The cops cleared it out, but I bet they still don't have homes.

[Vinca]

29. Here's one and there are others -

http://features.us.reuters.com/cover/news/D8C99CD0-AF35-11DC-9E67-616F0DA5.html

ONTARIO, California (Reuters) - Between railroad tracks and beneath the roar of departing planes sits "tent city," a terminus for homeless people. It is not, as might be expected, in a blighted city center, but in the once-booming suburbia of Southern California.

The noisy, dusty camp sprang up in July with 20 residents and now numbers 200 people, including several children, growing as this region east of Los Angeles has been hit by the U.S. housing crisis.

The unraveling of the region known as the Inland Empire reads like a 21st century version of "The Grapes of Wrath," John Steinbeck's novel about families driven from their lands by the Great Depression

[lebkuchen]

31. What's loaded about the question?

I have a relative in CA whose warranty on a $1.2 million home is only one year. Maybe warranties on new homes in CA vary from county to county. Most German kitchens alone are warrantied five times longer.

In Germany, it's 5 years country-wide.

Yes, all German mortgages are fixed, although the percentage can go down (only) after so many year of payment, like ten years. Germans don't buy and sell so much. They buy and live for long periods of time.

The tent cities are in LA.

http://www.youtube.com/watch?v=CnnOOo6tRs8

The U.S. is going through a housing crisis at the moment, with Americans unable to afford their mortgage. Have you heard?

[Xithras]

67. The other poster was wrong. They are not required in California.

In California, just about all of the new homes include them though, and the builders just include it into the price of the house. Some lenders require them as well. There MIGHT be some counties that require them, but if there are, I don't live in one.

When purchasing a pre-existing home, warranties must be negotiated between the buyer and the seller. The home I live in now included a one year warranty when I bought it, because the seller was kind enough to include it. The home I sold to purchase this one didn't include a warranty, because I didn't have the cash to spare and the buyer wasn't interested in picking one up.

By the way, the average California home buyer lives in their house less than 7 years. We tend to be the most mobile state in the nation in that regard. I'm only 33 and I'm already on my third home. For some reason we like to move a lot.

Fixed mortgages have always been the standard here as well, and ARM's were only offered to people with lousy credit, or people who only planned on owning their home for a couple of years (my two previous homes were financed with ARM's because I bought them knowing that I'd only be holding them for a few years...I have a fixed on this home because I bought it knowing I'd be staying a while.)

Also, keep in mind when watching the international news that reporters tend to leave details out. There have always been tent cities and shantytowns in the LA area. The mortgage crisis, while bad, only impacts a fairly small percentage of homes nationally. Those who have owned their homes more than a few years are typically OK. Those who bought during the peak and received fixed rate mortgages are also OK. They may be complaining about lost equity, but they aren't losing their homes. People who lost their homes and ended up in these tent cities are the extreme cases, and are a minority within a minority. Virtually all homeowners who lose their homes simply end up renting.

[aikoaiko]

45. Warranties are typically 1 year, but the homeowner can buy more.

[lebkuchen]

57. How about for a new car?

In Germany it's two years guarantee, w/the option to buy more.

[aikoaiko]

66. depends.

minimum 3 years, but up to 10.

My car came with a 4 year warranty and I bought 3 more.

[CK_John]

51. Depends on the state, some have none and others have 2 or 3 on new construction. n/t

[lebkuchen]

63. I was amazed that CA has a 1 year warranty on million dollar constructions

But I guess they figure they can find all the problems within 12 months, so 13 plus months are "overkill."

As a buyer, I'd prefer to have the extra protection.

[Xithras]

69. Actually, home warranties here tend to be a waste of money anyway.

AHS, the company that offered the original home warranty on my house, charged $500 a year for coverage. If something actually went wrong, it was $40 to have a site visit and have it inspected, and you still ended up paying deductibles that ran from $50 to $500 if something needed to be repaired. The one and only time I used it, it cost me $150 to replace a hot water heater that I could have replaced myself for about $250. That savings sounds great until you factor in the cost of the policy...that was a $650 hot water heater!

They still send me mailings now and then to get me to cover my home again. I dump them straight into the trash. I've had a number of repairs done to my home in the almost-decade I've owned it now, and the cost of the repairs has never come anywhere close to the amount I'd have spent to keep it covered under warranty.

[MindPilot]

80. I had some major issues with AHS -- they are a rip off

Adding the warranty in during a sale is no doubt a good selling point and does protect the buyer against some of those things that could go wrong while a house sits empty. But I think the money would be far better spent on a good engineering survey of the property--even a new one.

My problem with AHS is that they tended to do poor quality work and the people they sent out to do the work did the bare minimum and weren't interested in any upgrading no matter how much cash I waved in front of them.

I needed my furnace replaced. It took five service calls before they even figured that out. Now each one of these calls is about a week out schedule-wise and I have to take a day off work; in the meantime I'm using my fireplace for heat and literally burning through a hundred bucks worth of firewood a week.

Once the decision was made to replace the furnace, I said ok, that whole system is old and inefficient; let's replace the AC unit too and upgrade the ductwork and I'd like to install something better than the standard contractor-grade stuff. I'll pay any and all costs above and beyond the furnace replacement.

You would have thought I had asked to have the magnetic poles of the Earth reversed. I'm happy to spend another 6-8 thousand dollars here and they don't want the work. We were now rolling into summer and I spent the entire winter without a furnace. Finally I said enough, and called a plumber friend of mine to hook me up with a good HVAC guy.

One week and $6500 later I had a complete new heat and AC system. How hard was that?

[lebkuchen]

88. In Germany it's a 5 year free warranty

In fact, I'm liable for the repairs myself if I don't call the builder first.

[Mike03]

65. I believe my house was warrantied for five years, but I'm not certain.

It was either five or seven.

[sentelle]

70. From somewhat fractured information

It used to be (at least a few years ago) 5 years here in the states.
The problem is that the insurance companies stopped offering these plans to builders, so now even if they make a guarantee, go and see if you can enforce it.

[lebkuchen]

89. It's a national law in Germany--five year guarantee

the builder is responsible for repairs, at builder's cost.

[ileus]

74. tent cities in America are unheard of...You must be confused with Africa or the ME.

[IndyOp]

76. You've seen the BBC video of new tent cities in the Los Angeles area?

People who used to own their own homes are now living hand to mouth, occupants forced out.

In the last month some 60,000 houses were foreclosed on...

http://www.youtube.com/watch?v=CnnOOo6tRs8

[readmoreoften]

92. holy shit.

[IndyOp]

75. We prefer our lives of fear and desperate isolation.

It's the only rational conclusion, I suppose.

:shrug:

:eyes:

:grr:

[Ganja Ninja]

83. Nothing says freedom like sleeping over a steaming sewer vent

in sub-freezing weather. :patriot:

[leftofthedial]

77. the US no longer has citizens

since the corporate takeover, all we have here is customers.

and no laws protect customers from anything anymore.

[lebkuchen]

90. And that is the point here in Germany--consumer protection

I suppose the lawyer explained these laws to me, and Germany's being proud of them, because he knows how bad things are in the U.S.

[eridani]

97. And gamblers

How can we change a country of gamblers into a country of citizens?

[trotsky]

82. As noted above, it varies by state.

Most common, if any, is 1 year. Which when you think about it is ridiculous - what could possibly go wrong in just one year? The really serious problems like moisture/mold probably won't make themselves known for a few years at best.

I lived in Germany for a semester when I was in college. Had a wonderful time. Recently I've wondered how hard it would be to move there. If McCain somehow ends up winning this election, I may just give it some serious thought.

[dysfunctional press]

85. would a friendly german bank re-finance the mortgage on my house in illinois?

:shrug:

[slackmaster]

86. We get a lifetime right to sue builders for defects

:hi:

The interest rate with nothing down is approx. 4.85%. What is it in the States?

Rates go up and down in response to market conditions. I'm paying 4.75% on a fixed-rate 15-year mortgage.

People who enter the market with a higher rate are very likely to be able to refinance at a good rate within several years.

Why can't the US get it together and protect its own citizens?

We have a different social contract than Germans do. We pay less for government, and get a lower level of services in return.

[readmoreoften]

93. We don't want protection. We think it infringes on our 'freedoms'.

We always want to be able to think we can weasel our way into a better deal or save a buck, even when the slots are rigged. Largely, we're becoming idiots.

[pitohui]

94. oh i seriously doubt that my friend

most civil suits must be filed within one year

a lifetime license to sue? what state is that? why would anyone ever build a house there, and having somehow inherited a house anyway, who would take the chance of selling it to someone else? there are too many people out there, that once they have a bit of bad luck, they look for somebody to sue to get some $$$

it's a litigious "lawsuit lottery" society where every bright kid who can't get a real job goes to law school


it is true that we get a lower level of services in the usa, however, our taxes and costs are just as high if not higher -- the highest costs in our society of course fall on those who have chronic illness or have the misfortune to have a chronically ill child -- we pay, the rich stockholders of halliburton put it in their pockets, if you can defend that system, i guess you're one of those stockholders :shrug:

to answer the OP's question, around these parts, houses are generally sold "as is," so you are advised to hire an inpector to find any problems and get an estimate of future costs before you buy

[slackmaster]

95. Information on individual and class-action suits by homeowners is not hard to find

http://www.constructiondefects.com/mold/lawyerslay.asp

But I will concede there are limits. In California the statute of limitations for latent defects is GENERALLY 10 years. However "The 10 year statute of limitations does not apply to cases where there is proof of willful misconduct or fraud."

Lifetime right to sue.

http://www.constructiondefects.com/ll_ca_statutes.asp

[Hannah Bell]

100. We don't really pay less, if you throw health care & education

in the mix.

[Lex]

87. In NC you have warranty for 6 years

after the date of closing on new home construction. This is for claims for breach of Implied Warranty of Workmanlike Construction.

[Jamastiene]

98. You are joking, right?

:rofl:

We get zilch. Nada. Nothing. OMG, we wouldn't know what to do with something like that. The minute we sign our lives away on that mortgage, we owe on the house AND anything that goes wrong with the house, the yard, and we are even responsible for the water pipes and electrical lines coming from the road to the house to boot. WE ARE SCREWN!1!!!!