Harris releases plan to lower housing costs

[Bill Gates]

Some of you champion capitalism which is fine, but you have to acknowledge it is not without flaws. By nature capitalism is designed to keep cost (salaries) as low as humanly possible and also squeeze as much out of us as humanly possible. Capitalism, and supply and demand, are the entire reason the housing market is where it's at currently. There is extreme demand and low supply thus driving the prices up to levels many can not reach. Especially young families trying to enter.

If you are going to complain about various solutions to these issues, you should give out your own better solutions too.

[j3lademaster]

Some of you champion capitalism which is fine, but you have to acknowledge it is not without flaws. By nature capitalism is designed to keep cost (salaries) as low as humanly possible and also squeeze as much out of us as humanly possible. Capitalism, and supply and demand, are the entire reason the housing market is where it's at currently. There is extreme demand and low supply thus driving the prices up to levels many can not reach. Especially young families trying to enter.

If you are going to complain about various solutions to these issues, you should give out your own better solutions too.

Sure thing. Historically, credits have been used to inflate/ pump up a market, in this case disguised as help for Gen Z first time home buyers, but it is putting that additional 25k directly in the pockets of companies such as blackrock when they inevitably buy from them. This is actually nefarious and intentional, and a pretty smart way to pander to the left and real estate moguls at the same time. I agree with helping gen Z, because that is meritocratic; the whole carrot on a stick approach is what drives society after all, and the failure of most concepts is that progress isn’t motivating and enabling the already wealthy; it’s motivating the up and coming to compete with established wealth. We can achieve this with tax credits and deterrents. Tax credits for first time buyers just means they pay less to Uncle Sam without enriching real estate investors which causes unfair competitive advantage. What do I mean by unfair advantage? Well, when one industry gets too much help from the govt they will invest and take over other industries and hurt competition in the market. If that happens naturally? Sure that’s a different convo, but our govt should never interfere and offer that unfair advantage. So we can create a deterrent tax for single family homes for under certain amounts of dollars. In Phoenix it’s probably homes under $1mil, in LA maybe homes under $2mil, in rural Kentucky under $6, a modest gun collection, and 3 of that guy’s sister-wife’s used panties, idk what they’re into at the Bible Belt. But homes under a certain price should be protected as an elastic good that can be predatory when used against the middle class. Something like exponentially rising property tax for every subsequent property you own; normal tax for you first house, maybe a 5% property tax hike for second, and it can go to like 2x for the third house and even higher after to deter people from hoarding them. Another thing that’s worked wonders in Japan is its zoning. They deem certain land can only have apartments or single family homes built on them so you aren’t competing with Northrop Grumman for land all the time.

Edit: I meant homes as an inelastic good, not elastic.

[Bill Gates]

Sure thing. Historically, credits have been used to inflate/ pump up a market, in this case disguised as help for Gen Z first time home buyers, but it is putting that additional 25k directly in the pockets of companies such as blackrock when they inevitably buy from them. This is actually nefarious and intentional, and a pretty smart way to pander to the left and real estate moguls at the same time. I agree with helping gen Z, because that is meritocratic; the whole carrot on a stick approach is what drives society after all, and the failure of most concepts is that progress isn’t motivating and enabling the already wealthy; it’s motivating the up and coming to compete with established wealth. We can achieve this with tax credits and deterrents. Tax credits for first time buyers just means they pay less to Uncle Sam without enriching real estate investors which causes unfair competitive advantage. What do I mean by unfair advantage? Well, when one industry gets too much help from the govt they will invest and take over other industries and hurt competition in the market. If that happens naturally? Sure that’s a different convo, but our govt should never interfere and offer that unfair advantage. So we can create a deterrent tax for single family homes for under certain amounts of dollars. In Phoenix it’s probably homes under $1mil, in LA maybe homes under $2mil, in rural Kentucky under $6, a modest gun collection, and 3 of that guy’s sister-wife’s used panties, idk what they’re into at the Bible Belt. But homes under a certain price should be protected as an elastic good that can be predatory when used against the middle class. Something like exponentially rising property tax for every subsequent property you own; normal tax for you first house, maybe a 5% property tax hike for second, and it can go to like 2x for the third house and even higher after to deter people from hoarding them. Another thing that’s worked wonders in Japan is its zoning. They deem certain land can only have apartments or single family homes built on them so you aren’t competing with Northrop Grumman for land all the time.

Edit: I meant homes as an inelastic good, not elastic.

Harris's plan also includes huge tax credits for first time buyers. The $25k is just part if it. She also wants to aid in the construction of 3 million more homes.

The fear that the mortgage industry will get too powerful and take over other industries is no where in sight right now. Do you know anyone in the mortgage industry? They are probably hanging on by a thread. That is the one sector that is hurting more than any other right now. Helping them out would just get them back to "normal" and then when that happens we can take our foot off the gas.

[BurningHammer]

https://nlihc.org/resource/harris-ca...-housing-costs


First time home buyers will receive $25,000 as a down payment toward their home.

That is huge. Not sure how independents voters can ignore that.

There is a similar government deal in Ontario, Canada as well.

[rmt]

There is a similar government deal in Ontario, Canada as well.

Housing in Toronto, Canada is outrageously high. $25k, $50k would be nothing.

[Charlie Sheen]

Some of you champion capitalism which is fine, but you have to acknowledge it is not without flaws. By nature capitalism is designed to keep cost (salaries) as low as humanly possible and also squeeze as much out of us as humanly possible. Capitalism, and supply and demand, are the entire reason the housing market is where it's at currently. There is extreme demand and low supply thus driving the prices up to levels many can not reach. Especially young families trying to enter.

If you are going to complain about various solutions to these issues, you should give out your own better solutions too.

Where people want to live... near employment opportunities.

How will this increase supply anywhere that was not already building new housing?

The down payment assistance is luring new home buyers toward bad long term investments.

[rawimpact]

Anything that gets subsidized gets inflated.

Take a look at used EV vehicle prices... once the 4K credit came in, dealers are now advertising prices in the KBB range WITH the discount...
Same can be said about subsidized non-guaranteed/unbacked student loans --- it allows Universities to get away with huge tuition increases because students are dumb enough to agree to ridiculous tuition rates because they are preapproved.

[Overdrive]

Anything that gets subsidized gets inflated.

Take a look at used EV vehicle prices... once the 4K credit came in, dealers are now advertising prices in the KBB range WITH the discount...
Same can be said about subsidized non-guaranteed/unbacked student loans --- it allows Universities to get away with huge tuition increases because students are dumb enough to agree to ridiculous tuition rates because they are preapproved.

Basically this. Said this in another thread. Giving money/breaks/aid will just lead to higher prices, when you don't regulate the seller side aswell.

[Bill Gates]

Those are pretty different situations

1. EV/students is all buyers, this is only first time buyers which is a small % of the market. Existing home owners get nothing

2. Unlike auto makers and Universities, the mortgage industry is in turmoil and needs to be stimulated

[Norcaliblunt]

They could just eliminate and abolish the sins of usury and property tax.

But naw they’ll give you 25,000 dollars that will end up just going back to the bank or government. Lmao.

[Bill Gates]

Where people want to live... near employment opportunities.

How will this increase supply anywhere that was not already building new housing?

The down payment assistance is luring new home buyers toward bad long term investments.

Unrelated to what is the OP, but a lot of cities are now converting unused retail space into apartment buildings. Shopping malls that have become ghosted into apartments. Retail is continuing to die.

[rawimpact]

Those are pretty different situations

1. EV/students is all buyers, this is only first time buyers which is a small % of the market. Existing home owners get nothing

2. Unlike auto makers and Universities, the mortgage industry is in turmoil and needs to be stimulated

Are you dumb?

1 out of 3 home sales are first time buyers... so it effects a lot of people. No existing home owners get nothing, but they markup the price because prices follow supply and demand. The demand would just go up because essentially 1 out of 3 buyers just saw an extra 25K... so prices (set by the seller) go up as well. As i type this shit out i'm thinking why the f do I have to explain this elementary shit to a troll.

Stimulate the mortgage industry? Dude... i dont even want to start with this BS.

[rawimpact]

They could just eliminate and abolish the sins of usury and property tax.

But naw they’ll give you 25,000 dollars that will end up just going back to the bank or government. Lmao.

The federal government giving one 25K does not mean they will get any of your property tax money. The federal government does not impose a property tax nor are they suggesting so. Property tax goes to your local government. If you owned a home you'd know that... that's why local politics matter.

[Norcaliblunt]

The federal government giving one 25K does not mean they will get any of your property tax money. The federal government does not impose a property tax nor are they suggesting so. Property tax goes to your local government. If you owned a home you'd know that... that's why local politics matter.

Can you read? Where in my post did I say “federal government”?

Government is government. A bank is a bank. And like business as usual that 25000 is gonna end up in both of those.

[Bill Gates]

Are you dumb?

1 out of 3 home sales are first time buyers... so it effects a lot of people. No existing home owners get nothing, but they markup the price because prices follow supply and demand. The demand would just go up because essentially 1 out of 3 buyers just saw an extra 25K... so prices (set by the seller) go up as well. As i type this shit out i'm thinking why the f do I have to explain this elementary shit to a troll.

Stimulate the mortgage industry? Dude... i dont even want to start with this BS.

Are you dumb? You know that 1/3 is much lower than 3/3 right?

Aside from that new buyers are singled out to cheap starter homes.

You're a home owner right? I own several. THE MARKET IS MAXXXXED OUT. We are on the verge of another housing collapse and the mortgage industry is about to sink. So yes it needs to be rejuvenated.