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Ask HN: Anyone else feels the commoditization of real estate is unethical?

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Re: Ask HN: Anyone else feels the commoditization of real estate is unethical?

#681

Earlier quoted context omitted.

The response, above, lists pros but no rebuttal to why government-guaranteed mortgages are not socialist. In a free, capitalist market, private providers would price and provide mortgages. This is not happening here.. For some Americans this may be difficult to digest since there may be cognitive dissonance…how can an American ideal be characterised as socialist.

Right but it isn’t due to charity. It’s in the governments best interests to do this. It is acting rational. A socialist government would either ensure everyone qualifies or it wound instead build large dehumanizing concrete towers to stuff thousands of people in, block after block.

The subtext, from the statement above, is socialist government decision making is irrational while capitalist governments are rational.

Having traveled across many countries in Europe, I have seen governments with socialist traits make rational, sensible decisions. Again, while I agree that a capitalist government is probably more effective than most communist governments, the world is not black and white.

Re: Ask HN: Anyone else feels the commoditization of real estate is unethical?

#682
post #434

Earlier quoted context omitted.

I. Not having shelter kills. II. To not be killed is a basic human right. => Having shelter is a basic human right QED

That logic doesn't follow. There are plenty of things that, in some cases, lack of them causes death; but are not human rights. There are people that cannot survive without a liver transplant; not everyone gets a liver transplant; some people die because they cannot get a liver transplant. A live transplant is not a basic human right. There are many things that, as a society, we should do our best to make sure everyo…

This is a normative fallacy. If people die because they didn't get healthcare, that doesn't mean they didn't deserve healthcare. I'd argue that everyone who needs a liver (which is not the same as a liver transplant) has the right to one.

> but they fact that you need them to survive doesn't define them as such

Isn't that basically saying that surviving needn't be in a definition of 'human right'?

Re: Ask HN: Anyone else feels the commoditization of real estate is unethical?

#683

Earlier quoted context omitted.

What is required of the homeless to qualify? Often there are big strings attached like you have to be sober or at least be working towards that. They often don't want to help addicts who don't want to quit using.

Do you think it is wrong for society to have contractual requirements such as "I will help you if you are trying to help yourself"?

Counterpoint: do you think it’s wrong to let the sick stay sick and not help them? Addiction is a sickness and often requires a lot of help addicts can not themselves do to quit. You can’t expect someone who isn’t able to help themselves help themselves. This is the crux of the issue.

Also, people in half way houses or assisted living absolutely should be sober so they don’t cause anyone else in the facility to regress, but it is a hard problem. These people often need intense rehabilitation and these programs are neither quick or cheap. Someone has to run the program and success is never guaranteed. Mandatory government funded rehab would be AMAZING, but imagine how many people would crow about their “freedom” to shoot up meth is being infringed if that happened at the federal level.

This is a very hard problem and there aren’t easy solutions. My opinion changed a bit after I married a girl with a masters in social work. This is very draining heavy emotional capital work.

Re: Ask HN: Anyone else feels the commoditization of real estate is unethical?

#684

Earlier quoted context omitted.

Make small cities and towns desirable again and put those 50 people somewhere else.

Small towns are just inherently unsustainable in a globalized developed economy. Most of our economic activity comes from working with other people, that means the rational move is to move to where everyone else is, ie a city. Remote work can slow that process down, but it’s not reversing.

Yes, but you don’t need to live in a city of 8 million people to participate in the global economy anymore.

Globalism has made it easier to do global business in much of the US, logistics, transportation, and communication have changed dramatically since then.

People take for granted the fact that you can pop into any small town grocery store and find a vegetable grown in another country. That’s a relatively recent possibility.

But there’s also many cities of 100-300k residents with plenty of affordable housing and Fortune 500 offices.

Re: Ask HN: Anyone else feels the commoditization of real estate is unethical?

#685

Earlier quoted context omitted.

> This is a noble savage error. You said that last time ( https://news.ycombinator.com/item?id=31224977 ) I promise I'm not fantasizing about magic elves. :) However, it's clear that Native American lifestyles were preferable to European-American lifestyles. Graeber and Wengrow in "The Dawn of Everything" quote at length a letter from Ben Franklin on the subject: > When an Indian Child has been brought up among us, t…

Is it that shocking that I would hold consistent views over time? I have some experience in this area that would be very difficult to dislodge. I have lived off the power, sewage, phone, and internet grid for 20 years. I have built cheap homesteads and expensive ones. I have spent days foraging pinion nuts and weeks bowhunting deer. I like to think I have some sense of the luxuries afforded by modern living, and what…

> Is it that shocking that I would hold consistent views over time?

Not at all, in fact I respect that. I just didn't realize that we had talked about this before when I replied to your previous comment. On the one hand I feel a little silly, on the other hand I got to trot out that Ben Franklin quote, so that's cool. What do you think of that, what he wrote?

> I have some experience in this area that would be very difficult to dislodge. I have lived off the power, sewage, phone, and internet grid for 20 years. I have built cheap homesteads and expensive ones. I have spent days foraging pinion nuts and weeks bowhunting deer. I like to think I have some sense of the luxuries afforded by modern living, and what it is like to go without them.

That's fascinating! I don't want to get personal but I'd love to hear more about it?

> My specific point is that it still isn't, if you are willing to put up with the quality of lodgings non-industrialized people and settlers had. You can buy a wooded plot of land and build a log cabin for free. You can buy a steel shed that Native Peoples would have marveled at for a ~$1k.

> > A lot of places won't let you build and live in an igloo or adobe building today.

> Not in down town SF or most urban centers. If you leave these behind, nobody is going hunt you down and arrest you for living off-grid in a backcountry hovel. People actually do this!

You're right. My impression is that this is easier said than done, but that might be because I'm mostly only looking in California, where people have gotten kind of huffy about that sort of thing, at least in most counties. I've been looking at these cheap 2-5 acre parcels out in the desert (Utah, Arizona, NM, CO) that are just a couple of grand. Some of them even have electricity nearby. I guess the demand just isn't there.

- - - -

> > I promise I'm not fantasizing about magic elves. :) However, it's clear that Native American lifestyles were preferable to European-American lifestyles

> I think you are fantasizing about elves.

You think I am, I think I'm not, which one of us is closer to my brain? :)

> There is a lot positive to be said about native lifestyles, and negative to be said about industrialized lifestyles. However, I think most of them boil down to cultural issues and materialism, not the fact that Indians had somehow a superior material wellbeing.

There are very few cases of Native peoples voluntarily adopting Western lifestyles. They adopted useful things like guns and metal knives, but not culture.

That Ben Franklin quote makes it pretty clear that people preferred Native lifestyles despite the material lack. The fellow "reserving to himself nothing but a gun and match-Coat" shows that the "Wilderness" at that time actually met all his material needs, eh?

There's no doubt that the Indians did not have a superior material wellbeing. To me it's fascinating to speculate on what immaterial quality the Native life must have had that the European life didn't that outweighed the superior material wellbeing of the European.

Re: Ask HN: Anyone else feels the commoditization of real estate is unethical?

#686
post #364
post #172

Like another comment here mentioned, housing is complicated. People don't want to live in a random house in the middle of nowhere ('roof over your head'). Some people prefer to be homeless on the street versus getting to a roof over their head that they don't like. People want to live where they want to live (near family, jobs, culture etc) Take NYC for instance. Politicians try to address the NYC housing crisis from…

"Some people prefer to be homeless on the street versus getting [...] a roof over their head that they don't like" Do you have a reference to back up this statement? Have you ever spoken to any homeless people and asked them what they think about this? Clearly there are some limits in which your statement holds; I would prefer to be homeless in a city in the UK than held in a forced labour camp with housing for examp…

In Russia there is depressing Vorkuta city, where prices for flats are literally near zero. :-) It's clear indicator that most people prefer to be homeless than own 2 bedroom flat in Vorkuta :-)))

Re: Ask HN: Anyone else feels the commoditization of real estate is unethical?

#687

Earlier quoted context omitted.

Your last statement is not correct. People like to invest where they can make money and multi residential rent is profitable in most places and we have REITs and other financial instruments ready to grow and invest lots and lots into multi residential rentals to generate a decent cash flow to send back to investors. The problem for them now is that there is so little land zoned that way that these guys are often outb…

Regarding my last statement: People like to invest into multi residentials now, but are those investments still profitable when the zoning changes? How do you protect your investment when there is innovative pressure and housing units compete on price? Say you have a building and you try to monetize your investment over 20 years but after ten years, due to innovation, competing units can be built for half your costs.…

regarding your last point first: no, it doesn't require the vote of the nimbys. The state and/or province could force this very easily and that group of politicians is beholden to a group of people with more varied interests so are less under nimby pressure.

regarding your first point:The loss from rezoning will happen at the time of rezoning and will primarily affect the currently zoned high density land. With newly repriced lower, non scarce multi unit residential land it is unlikely to end up in a large downward risk situation because the sophisticated reits will be pricing what they will pay now for land off of what they think will happen over the next twenty years and will likely be pricing in a rent drop (which is what drives the drop in land prices for high density). You also aren't really at risk of technological disruption because the total turnover/increase in units is low relative to total housing stock even if we ented a building boom. If it suddenly costs half as much to build a high density residential building, it's still going to take decades for that to erode rental costs by half because you don't suddenly have enough supply of that cheaper to build stock to house everyone.

Re: Ask HN: Anyone else feels the commoditization of real estate is unethical?

#688
post #683

Earlier quoted context omitted.

Do you think it is wrong for society to have contractual requirements such as "I will help you if you are trying to help yourself"?

Counterpoint: do you think it’s wrong to let the sick stay sick and not help them? Addiction is a sickness and often requires a lot of help addicts can not themselves do to quit. You can’t expect someone who isn’t able to help themselves help themselves. This is the crux of the issue. Also, people in half way houses or assisted living absolutely should be sober so they don’t cause anyone else in the facility to regre…

Agreed we need to help the sick, I didn't make that clear enough. I was trying to understand if the previous poster thought it was wrong to say "Here is housing and a program. You can't have the housing without the program."

After working with foster and adoption of two preteens from an unhealthy home situation my opinions have changed a bit as well. Compassion is hard - it should push us to do. Now if I can just work on being less blunt ...

Re: Ask HN: Anyone else feels the commoditization of real estate is unethical?

#689
post #674

Earlier quoted context omitted.

If you own the building and live in one of the units the, in my opinion, most ethical course of action that still benefitted you would be to sell the remaining units to the current tenants or even better, if they've been living there long enough, treat their total rent paid as payment for the unit

The lot is zoned for 14 units, has 4 currently. If we give the 2 other families that live here a few hundred thousand dollar entitlement it will never be developed. Your proposal is insane. They've paid 600 dollars (rent control) a month for (let's say) 10 years. 60k buy in for a quarter of a 1.2m dollar property? I'd take that deal as a renter.

That's why I said if the tenant has been there for a sufficient time. If they have covered the unit's cost, plus maintenance, they have effectively paid for all the owner's expenses. Shouldn't it be enough to effectively own the property they actually live in?

Re: Ask HN: Anyone else feels the commoditization of real estate is unethical?

#690
post #606

Earlier quoted context omitted.

I'd say a house costs more than almost anyone has; it's why people need to take out loans to purchase them. That said, without a rental market the price of houses goes way down. As a result, the people that cannot afford houses then are mostly the same people that cannot currently afford rent. This is because the mortgage payment and insurance for a home is actually lower than the monthly rent. If the top value were…

So you have a city like Los Angeles or NYC. You convert all housing to single family homes. Can more people of fewer people live there now?

Why would you convert all housing to single family homes? Do people not own apartments for some reason?
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