"but in the real world there is a competitive market when it...

"but in the real world there is a competitive market when it comes to buying major assets such as houses."

There is no competitive market. Interest rates are set by a central bank. Hence, unsurprisingly as I said earlier, there hasn't been any innovation with international transfers in 45 years.


"The price isn't determined by banks, it is determined by ability to service the loan at given interest rate and loan term."

This is inaccurate. The price of any product or service is what the market says it is. In either a competitive monetary system, or a system outside the control of direct human influence (Such as Bitcoin's P2P decentralised consensus), this may lead to an environment similar to what you describe. However, when only certain people are allowed to engage in legalised fraud (Money creation) on a monopolised currency in a society, those people have an advantage over those who do not have the same ability.

"Can you remind me of a time when it was possible to buy a house without borrowing funds, or perhaps we should all just live in caves lol?"

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6
0	Year	Individual's Yearly Income	House cost	House cost to yearly income ratio	Years to pay off with single parent saving at 50%	Years to pay off with both parents working paying 50%
1	1975[/B]	$7,618	$28,000	3.68:1	7.35 Years	3.68 Years
2	2015	72,000	$850,194	11.81:1	23.62 Years	11.81 Years

Source

Note: The above graph does not take into account wage differences by both parents, extra costs such as interest with a mortgage, etc, etc. It is meant to simply demonstrate purchasing power decline over the last 40 years.