If you sell a house these days, the buyer might be a pension fund

Post by tptacek » Wed, Jun 09, 2021, 4:12 PM UTC

rkangel wrote: post #106

randomfool wrote: post #49

Earlier quoted context omitted.

Since land is a limited asset they can effectively corner the market in specific regions and gain pricing power, allowing them to turn that 20% purchase price premium into a hefty profit. Cities can counter this by allowing more new construction but backfilling Single Family Residences requires land and that may not be readily available within certain commute distances.

It's slightly more complicated than that because what they'll do is keep the properties and rent them. There being few houses to buy increases the demand for rent, and cornering the rental market means you can control rent prices.

Post by xapata » Wed, Jun 09, 2021, 4:12 PM UTC

adflux wrote: post #98

em-bee wrote: post #91

Earlier quoted context omitted.

i am confused by your first sentence. what do non-homeowners sell?

Some people say "Well, you're paying more but you can also sell it for more afterwards". But non-homeowners are still paying more for less. That's the argument I am trying to make (poorly)

Post by rich_sasha » Wed, Jun 09, 2021, 4:12 PM UTC

crazygringo wrote: post #69

commandlinefan wrote: post #4

This hurts people who already own houses, too - property taxes are assessed on the appraised value of the home, which is a function of what the similarly-sized houses in your area sold for most recently. My property taxes have increased 10% every year for the past several years (and it would have been more if not for a legislative 10% annual cap). I worry that there will come a day when I've paid off my mortgage but…

I really don't see how you're complaining -- the value of your home is going up way more in absolute terms than the property tax you're paying. If you don't have cash, take out a small mortgage on the house to pay the property taxes. You'll still come out ahead in the end.

Post by JKCalhoun » Wed, Jun 09, 2021, 4:13 PM UTC

adflux wrote: post #16

This is what happens when you keep printing money and keep mortgage rates incredibly low. All that money's gotta go somewhere. Hey, at least the CPI isn't going up right? Its only the most expensive thing in most people's lives that has doubled in cost in about 10 years. Same thing for stock prices, and slowly other commodity prices are catching up as well. Non-homeowners are being shafted by this fed/ecb policy. Eve…

Post by Retric » Wed, Jun 09, 2021, 4:13 PM UTC

snikeris wrote: post #41

cosmojg wrote: post #32

If only so many people didn't treat land and houses like investments, there wouldn't be such a disastrous hoarding problem. Henry George's Land Value Tax [1][2] seems like an obvious economic fix that would require a large fraction of the population to change how they think about land and natural resources, but most of them are invested in such a way (i.e. owning multiple houses on multiple parcels of land, often wit…

I already pay a Land Value Tax to my town.