Home Ownership

[Jibartik]

Originally Posted by maskedmelon [You must be logged in to view images. Log in or Register.]

The dirty dollars that you use to purchases houses have been devaluing at a rate of about 7% per year on average for the last several decades. As a scarce asset, housing tends to hold its value better than fake notes printed by pernicious entities. This means that a house selling for $200k ten years ago will command a price of roughly twice that today even without an increase in demand precipitated by investors looking for a place to park the rotting dollars dumped on the market since March of last year.

all the more reason to ban real estate investing.

[maskedmelon]

Originally Posted by Jibartik [You must be logged in to view images. Log in or Register.]

all the more reason to ban real estate investing.

Why not just stop pouring dollars into the system tho? The majority of the increase in price is due to the currency devaluation.

[Jibartik]

I just dont think it should be a way to invest or make money beyond the equity in the properties you live in.

If i was god emp that's the rule I'd make

[Pulgasari]

Originally Posted by maskedmelon [You must be logged in to view images. Log in or Register.]

Why not just stop pouring dollars into the system tho? The majority of the increase in price is due to the currency devaluation.

Keep the machine going or it'll kill us all, especially softskin thesaurasaurs like u.

[maskedmelon]

Originally Posted by Jibartik [You must be logged in to view images. Log in or Register.]

I just dont think it should be a way to invest or make money beyond the equity in the properties you live in.

If i was god emp that's the rule I'd make

Do you mean that you would make rental housing illegal? �� What about people who don’t want to live in an apartment, but lack the savings for a down payment, or do not qualify for a loan?

And you don’t care about currency devaluation or its impact on housing prices? I am just curious about this piece since it is relevant to your OP on the housing market.

[maskedmelon]

Originally Posted by Pulgasari [You must be logged in to view images. Log in or Register.]

Keep the machine going or it'll kill us all, especially softskin thesaurasaurs like u.

🤣

[Jibartik]

Originally Posted by maskedmelon [You must be logged in to view images. Log in or Register.]

Do you mean that you would make rental housing illegal? �� What about people who don’t want to live in an apartment, but lack the savings for a down payment, or do not qualify for a loan?

And you don’t care about currency devaluation or its impact on housing prices? I am just curious about this piece since it is relevant to your OP on the housing market.

I'd come up with a good system that basically makes home ownership a much smaller scale.

Something like you could own 2 homes per person or something. I dont care what affects it has on society or the world or economy beyond how I think it would make things better either too because I am god emp in this scenario.

I just think you should own the land you live on and that's it. This town aint big enuf.

[hobart]

Originally Posted by maskedmelon [You must be logged in to view images. Log in or Register.]

Why not just stop pouring dollars into the system tho? The majority of the increase in price is due to the currency devaluation.

Originally Posted by maskedmelon [You must be logged in to view images. Log in or Register.]

Do you mean that you would make rental housing illegal? �� What about people who don’t want to live in an apartment, but lack the savings for a down payment, or do not qualify for a loan?

And you don’t care about currency devaluation or its impact on housing prices? I am just curious about this piece since it is relevant to your OP on the housing market.

"Currency devaluation" has little or nothing to do with the increase in the prices of investment real estate and, thusly, rents.

1031 exchanges combined with historically low capital gains, the ability to take accelerated depreciation, cost segregation, and increases in property taxes, continue to drive the demand for investment real estate and continue to encourage people to take gains 3-5 years into the ownership cycle. And now that you've sold, you can overpay up to 38% more than the market value on the property you're re-investing in and still come out ahead...

[Gatordash]

Don't know what you guys are talking about with this currency devaluation stuff. Biden and Powell can print as much money as they want and we will only have a 2% inflation this year because its transitory(TM).

[maskedmelon]

Originally Posted by hobart [You must be logged in to view images. Log in or Register.]

"Currency devaluation" has little or nothing to do with the increase in the prices of investment real estate and, thusly, rents.

It accounts for about 75% of the increase tho.

1031 exchanges combined with historically low capital gains, the ability to take accelerated depreciation, cost segregation, and increases in property taxes, continue to drive the demand for investment real estate and continue to encourage people to take gains 3-5 years into the ownership cycle. And now that you've sold, you can overpay up to 38% more than the market value on the property you're re-investing in and still come out ahead...

Given that currency devaluation adequately explains around 75% of appreciation in housing prices, the collective influence of these items account for around only 1/4 of the increase.