A Growing Problem in Real Estate: Too Many Too Big Houses
1–10 of 440 posts
Re: A Growing Problem in Real Estate: Too Many Too Big Houses
#2Ah I always forget, what's the trick to read wsj articles again ?
Re: A Growing Problem in Real Estate: Too Many Too Big Houses
#3Ah I always forget, what's the trick to read wsj articles again ?
Outline.com - in this case: https://outline.com/SAJ7yR
Re: A Growing Problem in Real Estate: Too Many Too Big Houses
#4We have a similar issue in the UK since there are large houses being occupied by older couples whose children have left. Since annual property taxes are low (~4k - we call it council tax) and tax on buying property (stamp duty) is high, there is no incentive to move to a smaller place.
Re: A Growing Problem in Real Estate: Too Many Too Big Houses
#5This is not only "first world problems", but 1% first world problems. Well, maybe 5%: given
> For their retirement in a suburb of Asheville, N.C., Ben and Valentina Bethell spent about $3.5 million in 2009 to build their dream home: a roughly 7,500-square-foot, European-style house with a commanding view of the Blue Ridge Mountains.
Put $3.5m into https://dqydj.com/net-worth-percentile-calculator-united-sta... and you find that they are at least in the 96.5 percentile. (They are unlikely to have mortgaged it, as most lenders won't lend past retirement for obvious reasons)
The house is 700 (seven hundred) square meters. By comparison, London is banning the construction of "mega homes" over 150m2 in an attempt to prevent hypergentrification by oligarchs. These people in the article are the wealthy who haven't noticed that the ladder has fallen away behind them leaving nobody to buy their mansion.
Re: A Growing Problem in Real Estate: Too Many Too Big Houses
#6This is not only "first world problems", but 1% first world problems. Well, maybe 5%: given > For their retirement in a suburb of Asheville, N.C., Ben and Valentina Bethell spent about $3.5 million in 2009 to build their dream home: a roughly 7,500-square-foot, European-style house with a commanding view of the Blue Ridge Mountains. Put $3.5m into https://dqydj.com/net-worth-percentile-calculator-united-sta... and yo…
I mean, not really. I knew plenty of people buying new mcmansions on credit when their household income wasn’t above 80k. Many many Americans over leveraged themselves by buying up huge properties with no down payment.
Re: A Growing Problem in Real Estate: Too Many Too Big Houses
#7We have a similar issue in the UK since there are large houses being occupied by older couples whose children have left. Since annual property taxes are low (~4k - we call it council tax) and tax on buying property (stamp duty) is high, there is no incentive to move to a smaller place.
Equating council tax with property tax is extremely misleading imo.
For the benefit of people not from the UK: Council tax is effectively a bill for services & utilities paid by the occupier. Cost differs slightly based on overall property value but that's not super helpful for renters.
Property taxes would be levied on the owner, and be directly tied to house value.
For what it's worth I believe we desperately need property taxes to put and end to the situation you describe, amongst others.
But the UK has a fetish for homeownership, culturally people are convinced they _must_ own a house or multiple, and so many homes were practically given away for free by past governments.
Any Government trying to implement policies that try to fix our housing crisis will be voted out almost instantly by a class of people who do not care what is for the public good, only that things benefit them.
Re: A Growing Problem in Real Estate: Too Many Too Big Houses
#8Re: A Growing Problem in Real Estate: Too Many Too Big Houses
#9We have a similar issue in the UK since there are large houses being occupied by older couples whose children have left. Since annual property taxes are low (~4k - we call it council tax) and tax on buying property (stamp duty) is high, there is no incentive to move to a smaller place.
Oh come on. My youngest will be 18 in 8 years, so I should be squeezed out of my 180m2 (1800 square foot) home when she goes to college? When I'm 55?
Re: A Growing Problem in Real Estate: Too Many Too Big Houses
#10We have a similar issue in the UK since there are large houses being occupied by older couples whose children have left. Since annual property taxes are low (~4k - we call it council tax) and tax on buying property (stamp duty) is high, there is no incentive to move to a smaller place.
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