House prices surpass housing-bubble peak on price-to-rent ratio

Post by [deleted] » Thu, May 27, 2021, 5:13 AM UTC

chid wrote: post #120

eutropia wrote: post #87

Just your annual reminder that the Land Value Tax is the Least Evil Tax. Tax "rent"[0] at 85-100%, allow owner-residents to defer LVT taxes owed to time of sale with modest interest. Speculators would be naturally driven out in favor of people actually using the land. [0] - Which is gatekeeping/charging for land (finite natural unimproved resources like space, spectrum, water, wildlife, oil, etc)

I don't see how you could justify it's the 'least evil tax'. In theory the least evil tax is something that doesn't change behaviour. We have a land value tax here in Australia which doesn't apply to owner-residents. That said, most places are excluded.

Post by TimSchumann » Thu, May 27, 2021, 5:50 AM UTC

throwaway316943 wrote: post #88

akudha wrote: post #35

I wish something is done about these rentiers. Someone I know is amassing a rental property portfolio, while I am struggling to buy my first home. I am not against people making money and getting rich, but it would be nice if it wasn’t so easy to buy up multiple properties simply because they have the cash. There should be all kinds of incentives for first time home buyers. But it should be made very expensive/very p…

242,000 acres sounds big but it isn’t a significant percentage of US farmland. A large farm (in the $1m sales class) is usually above 3,000 acres in size. So Bill has bought less than 100 large farms. There are somewhere around 78,000 US farms in that class making up about 4% of farms and containing 25% of existing farmland. In other words, Bill owns squat. He probably bought those farms as an investment, there’s no…

Post by refurb » Thu, May 27, 2021, 8:11 AM UTC

harambae wrote: post #128

refurb wrote: post #125

Earlier quoted context omitted.

That’s not how rent works. Just because the landlord’s costs go up doesn’t mean rents go up.

Yes, to some extent. The rent is dictated by the market price, which could be a gain or loss for the owner. But if every landlord's costs go up, then everyone's rent probably goes up, since the landlords are competing with each other.

Post by throwaway316943 » Thu, May 27, 2021, 2:16 PM UTC

TimSchumann wrote: post #133

throwaway316943 wrote: post #88

Earlier quoted context omitted.

242,000 acres sounds big but it isn’t a significant percentage of US farmland. A large farm (in the $1m sales class) is usually above 3,000 acres in size. So Bill has bought less than 100 large farms. There are somewhere around 78,000 US farms in that class making up about 4% of farms and containing 25% of existing farmland. In other words, Bill owns squat. He probably bought those farms as an investment, there’s no…

Not sure where you’re getting these numbers from, but where I grew up a million dollars would buy less than 100 acres of good farm land. Seems similar on the west coast where I live now. By my back of the envelope calculations, 3000 acres of good farmland would cost around 15 million easy. https://extension.umn.edu/farmland-rent-and-economics/farmla...

Post by OldHand2018 » Fri, May 28, 2021, 2:26 AM UTC

question000 wrote: post #49

vinw wrote: post #34

Earlier quoted context omitted.

> houses have never decreased in value historically Never?

Yes literally never in my lifetime, even after the 2008 recession those same houses are worth more now then ever. Any findings that show house values are "going down" are just sampling errors, or more likely people being purposefully misleading by distorting the trends.