Earlier quoted context omitted.
> You literally said “the prices were through the roof”, not the growth. Maybe english is not your first language but when something is "through the roof" it means it raises at a very rapid rate. In other words, speaking to the velocity, not the overall speed. > Yes something that is really cheap can experience rapid price growth and still be relatively cheap. You're being overly pedantic about this for no reason. Pu…
> Maybe english is not your first language but when something is "through the roof" it means it raises at a very rapid rate. English is my first language, but I get your meaning now. It wasn't that Kansas property was expensive, just that it went from very very cheap to just very cheap very quickly.
Will real estate ever be normal again?
601–610 of 620 posts
Re: Will real estate ever be normal again?
#602Earlier quoted context omitted.
This is what most people get wrong about home ownership. Mortgage and rent are two different, unrelated things. Rent is part of the value of a property. If you live in it, you're essentially paying its opportunity cost. That in itself has nothing to do if you borrowed money against it or not. The only way to not pay rent is to make someone else pay for you (eg live with someone else that doesn't charge you)
Yes, they're different things. However you need a place to live so unless you already own a paid off house, you can choose between paying a rent or paying a mortgage. It's the bigger part of your "housing costs" in both cases.
If you can pay a mortgage most likely you can pay a rent, and it's going to be way cheaper if you factor everything in. And in both cases you can be evicted if you don't pay anyway.
Re: Will real estate ever be normal again?
#603Earlier quoted context omitted.
> the free market has failed to provide housing to people Is it really a free market in places like the Bay Area where zoning is so restrictive and NIMBYs can show up to planning meetings to basically block any new construction? It's been pointed out elsewhere in this thread that Japan also had a free market but less restrictive zoning and housing is much more affordable there. The main argument for government effici…
Eminent domain?
Re: Will real estate ever be normal again?
#604Earlier quoted context omitted.
Rich people with significant asset portfolios can borrow more and at lower rates than young people. They have been doing so. Forcing young people to take more and more debts to buy assets at now over-inflated prices has no happy ending.
If you take out a huge mortgage and buy a house, and then there actually is massive inflation, then you will have a very happy ending.
Sure, you can win from that. But, in % terms, you win less than people already richer than you. Inequality is only increasing.
Re: Will real estate ever be normal again?
#605I see a lot of fellow millenials thinking that the only way to escape the poverty trap that is being chronically burdened by onerous rent payments is to "play the game", i.e. to do all of the house hacking stuff to by MFUs, live-in-and-flip, or whatever the thing to do is. There is no doubt that this stuff can work. If you become a very savvy investor, you can start seeing net positive on your housing as an investmen…
Re: Will real estate ever be normal again?
#606Earlier quoted context omitted.
Your note above contains a lot of assumptions about what I think, and vitriol, words like steal, destroy, trash, etc. This seems to be something that you are emotional about. Lots of people think it's immoral for neighbors to be able to micromanage the living spaces of other neighbors outside of basic safety issues. I'm not sure how you'd defend imposing your will on other people just because you can at any given mom…
One more fallacy you have posted: >>Lots of people think it's immoral for neighbors to be able to micromanage the living spaces of other neighbors outside of basic safety issues. I'm not sure how you'd defend imposing your will on other people just because you can at any given moment. No one is micromanaging the living spaces of other neighbors. As you say, it's a democracy. I have lived in towns that had zoning, and…
Your statement above seems quite incorrect. I was thinking that most people in the U.S. can't build an accessory dwelling unit in their backyard for their grandmother. Most people in the U.S. can't build a 400 square foot house on their land. Most people can't convert their house into a duplex or a triplex. Most people can't run a low traffic specialty retail or service business out of their house. None of these are safety issues.
You mentioned variances, which can be requested for things like the above. But that's my main point, why should these things require variances? "taking into consideration everyone's local concerns" as you mentioned. Processes like this take away people's freedom to modify their house like in the above examples, without good reason.
This is what I was referring to. Why should the approval of other people be required to make the above modifications to a property you own?
Maybe this is the main thing that we disagree on. It seems like micromanaging to me.
I still don't think you get where I'm coming from when I mentioned Japan. I'm not in favor of developers, and I don't think my ideas lead to that. Did you look into how the Japanese do zoning? I'm guessing you didn't, because all you said to me was "If you like Japan, go there." That just seems reactionary. Japanese homeowners could make all of the modifications I mentioned above without needing permission. It's a good system. Has it's advantages. I think that sometimes people are afraid of change.
Some of the stuff you typed in your two replies was interesting, but doesn't seem to narrow down what we are discussing. I don't think the dictionary definitions helped.
Re: Will real estate ever be normal again?
#607Earlier quoted context omitted.
You're begging the question; the fact that regular people are taxed on their gross income while the rich get to be taxed only on their profits is a big injustice in the first place. But on top of that: that rental properties are usually an investment that grows in value, so that's where a lot of the expenses you mentioned actually go, but they're deductible as business expenses; unrealistically high depreciation is a…
> the fact that regular people are taxed on their gross income while the rich get to be taxed only on their profits is a big injustice in the first place. In many countries (including the two I've lived in as an adult) regular people get to make deductions for stuff like the cost of commuting to work, work clothes or equipment (to the extent that's not supplied by their employer), etc. By "deductions" here I mean, su…
Re: Will real estate ever be normal again?
#608Earlier quoted context omitted.
Your note above contains a lot of assumptions about what I think, and vitriol, words like steal, destroy, trash, etc. This seems to be something that you are emotional about. Lots of people think it's immoral for neighbors to be able to micromanage the living spaces of other neighbors outside of basic safety issues. I'm not sure how you'd defend imposing your will on other people just because you can at any given mom…
I can tell you that no one is "freezing anything in time", or "micromanaging the living spaces of other neighbors", or "doing it for their own convenience", or attempting to "morally marginalize people I'm afraid of". I'm making no assumtions, merely responding to what you put in print. Maybe you are merely playing dumb, but you show little evidence of knowing how any of this actually works, or evidence of having eve…
> Until then, stop being so entitled and stop the clueless rhetoric.
We both feel passionate about this stuff. It's easy to go off the rails. Doesn't look good, though.
Re: Will real estate ever be normal again?
#609Earlier quoted context omitted.
I’m wracking my brain trying to figure out how we’ll ever raise interest rates again due to this issue. Does anyone know? Any tricks I’m not aware of? Was there way less gov debt in the early 80s when they massively raised rates?
Not only less debt, but surplus payroll taxes from Social Security were flowing in and basically landing on the government balance sheet. (Via a special non-marketable bond series) We no longer have a surplus there, and the issues around it were kicked down the road 39 years, when we had a Senate run by adults instead of the current pack of dull knives. The military stuff will just get cut. We separately run 4 of the…
One of my favorite quotes about how massive and redundant our military is:
"Your Navy possesses its own Army, which possesses its own Air Force....which is larger than the Air Forces of most countries."
https://en.wikipedia.org/wiki/United_States_Marine_Corps_Avi... ^close to 350 fixed-wing combat aircraft!
Re: Will real estate ever be normal again?
#610Earlier quoted context omitted.
One more fallacy you have posted: >>Lots of people think it's immoral for neighbors to be able to micromanage the living spaces of other neighbors outside of basic safety issues. I'm not sure how you'd defend imposing your will on other people just because you can at any given moment. No one is micromanaging the living spaces of other neighbors. As you say, it's a democracy. I have lived in towns that had zoning, and…
> No one is micromanaging the living spaces of other neighbors. Your statement above seems quite incorrect. I was thinking that most people in the U.S. can't build an accessory dwelling unit in their backyard for their grandmother. Most people in the U.S. can't build a 400 square foot house on their land. Most people can't convert their house into a duplex or a triplex. Most people can't run a low traffic specialty r…
First is scale. Very few one-off items will have a big effect. But when nearly everyone does it, it entirely changes the loads on the infrastructure, character of the community, etc.
Adding 2x-3x the residents to existing plots will add similar loads to the roads, water, sewage, and services infrastructure. These boil down to very real costs, and if not properly managed, including raising taxes as it happens, will seriously degrade the town. Limiting this is not micromanaging, it is managing.
The other is the direct effect on the neighbors. This happened with my grandparent's house, a one floor ranch built in the ~1950s overlooks the Hudson river north of NYC. Someone bought it and wanted to turn it into a 2-story. There is another large house further up the ridge overlooking the roof, the river, and the hills beyond. This change would have destroyed their view of the river and hills to the west. Despite the new owner's significant funds and lobbying, the request was denied and it was sold on.
I think this is an excellent result. The owner of my GP's house would have imposed a massive external loss on the neighbor.
Sure, there are some neighbors who are absolute asses and will deny everything for spite, and that can be as annoying as micromanaging. At the same time, I do not consider it to be my right to do whatever TF I want, and the hell with how it affects my neighbor - and in particular, I want the same treatment - golden rule.
The problem is that developers DO work by the different golden rule - he who has the gold makes the rules. They are basically growth hackers (and not in a good way). Any hole in the rules they WILL attempt to exploit in order extract maximum profit from a plot of land.
The developer off my back lot line? He's not big, he's a guy from another state who builds additions, and thinks this massive development, with which he has zero experience will be his big retirement payday. Considering the environment and geography issues, I think he is stupid money and that serious developers passed on the lot. But that doesn't stop every random builder with dreams.
So, as soon as you allow general conversion from single to duplex/triplex, that is guaranteed what you will get within a few years. Sure, some of it will be people just building a second unit for their family to live on the same plot. But most of it will be builders buying up lots that can then be built out. And they will do it in the way that makes them the most profit, usually short-term - this means regard for the neighbors is zero beyond what is required and enforced.
So, while these ideas sound wonderful and egalitarian, the reality is that being more loose about it inevitably leads directly do developer abuses and destruction of what has been created.
There may be solutions to this, but if it was easy, it would have already been done.