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A Growing Problem in Real Estate: Too Many Too Big Houses

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Re: A Growing Problem in Real Estate: Too Many Too Big Houses

#21
post #7

Earlier quoted context omitted.

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…

I feel that it was not "extremely misleading" within the given context which referenced older couples in larger properties. In this case, they are the ones typically paying the council tax. I agree with you that the UK needs property taxes to be paid for by the owners. This would help reduce speculation and encourage utilisation of the existing housing stock. But as another post has mentioned, objections include "thi…

You need to be careful when dismissing caution about the elderly who have - through whatever means - found themselves living in a valuable property. The following are just as likely:

- a wealthy individual with many properties who can easily afford a few extra hundred quid a month

- someone living just above poverty level in a property in a previously modest area that, thanks to a gentrification, has exploded in value - and would to move out if their tax band was bumped up a bit

We cannot just dismiss the plight of the latter simply because we want to disincentivise the former.

I'd like to add that the vulnerable (including but not limited to - elderly, long-term unemployed, immigrants, disabled) in the UK have already had to deal with cuts in local services as well as periodically being labelled by the government and the press as lazy or pathetic or scroungers. I'd encourage anyone to resist anything that could be used to further victimize or immiserate them - even if it is just in the form of a casual tweet or comment.

Edit: My last paragraph really sounds a little harsh on re-reading. This is because it was meant to be an "as an aside" comment and not accusing Blackstone4 of anything sinister! I'm generally in favour of taxing the rich and powerful.

Re: A Growing Problem in Real Estate: Too Many Too Big Houses

#22
post #5

This 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…

you mean american, not first world problem. everything is big in america

Re: A Growing Problem in Real Estate: Too Many Too Big Houses

#24
post #7

We 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…

It’s not so much a fetish for home ownership as a reflection of bad incentives. Renters have few rights and embarrassingly owning a home is often actually cheaper even in ridiculously valuable areas.

Re: A Growing Problem in Real Estate: Too Many Too Big Houses

#25
post #6

Earlier quoted context omitted.

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.

> McMansion is a pejorative term for a large "mass-produced" dwelling The subjects of the article: > 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. > Robin and David Saltman moved from New Jersey to Ponte Vedra Beach, Fla., where they spent more than a year custom-building their…

The title of the article is literally: "A Growing Problem in Real Estate: Too Many Too Big Houses."

Since mcmansions are large (as you said), I think they are relevant to the discussion.

Re: A Growing Problem in Real Estate: Too Many Too Big Houses

#26
post #7

Earlier quoted context omitted.

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 would be levied on the owner, and be directly tied to house value. Property taxes don't necessarily fix the issue though, because the property value is usually re-evaluated on sale, so the property tax increases drastically at that point.

That’s a California issue. Most places do periodic reassessment.

Re: A Growing Problem in Real Estate: Too Many Too Big Houses

#27
We built a 4200 sq/ft home 8 years ago, now trying to sell it in a gated community. The more expensive homes around ours are selling, ours has sat for over 3 months. We have alot of traffic seeing the house but because it doesn't have all the extras (pool, outdoor kitchen, etc) people are not buying. Sad.

Re: A Growing Problem in Real Estate: Too Many Too Big Houses

#28
post #5

This 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 don't get why you'd want to build an enormous house for your retirement? If anything, I long for the day my kids leave and I can move to a "simpler" place where I don't need to worry about, or pay for, maintainnig a detatched house.

What does a rich older couple do in 7500sq ft/700sq m? I'd run out of ideas for rooms after about 200 sq m, and then I'm left to clean the remaining 500 sq m. anyway...

Re: A Growing Problem in Real Estate: Too Many Too Big Houses

#30
post #6
post #5

This 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.

They're talking about multi-million dollar homes in the article. Even at the absolute height of the housing bubble craziness in 2007-2008 nobody was getting approved for a $3.5M house on an $80k salary.
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