731–740 of 1001 posts
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You can rent a home after you’ve personally owned it and lived in it for 10 years? That would cap any individual to 3-4 rentals in a lifetime
We need more rental units, and it isn't clear how that policy would help the situation.
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Why would this help affordability? If you restrict who can operate rentals, that will inevitably shrink the supply of rentals, which will raise rents.
Would it not also lower house prices, causing would-be renters to buy instead, reducing demand for rentals?
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Anyone familiar with basic economics is pulling their hair out reading this, because there's one extremely obvious way to lower the price of building new housing: Reducing or eliminating tariffs on construction equipment and materials and ensuring a robust supply of low-cost labor. That's quite an extreme political take. A more humble basic economic theory question would be: If you ban large institutional investors f…
> That's quite an extreme political take. We're in a weird timeline when pointing out that dramatic tax increases on the inputs to home building will increase the price of homes. > A more humble basic economic theory question would be: > If you ban large institutional investors from buying homes, and then you ban small institutional investors from buying homes. And only owners directly can buy homes, no renting. Woul…
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You're telling a just-so story, and you can tell because there isn't a simple schematic 1-2-3 story you can make from this about how these people exert control over home prices. Words mean things; wielding scarcity requires you to control enough inventory to manipulate scarcity, and REITs and corporate buyers empirically don't. I get why people like telling stories like this: it suggests there's a single boogeyman th…
I don't mean to convey that it's intentional. There's no conspiracy of cigar smoking financiers in tuxedos smoking cigars in dark rooms. It's just like the Carlin observation - there doesn't have to be a big conspiracy. They just know what's good for them. They behave accordingly. The do things that they can, and because those things are relatively new, it's a type of information asymmetry and policy / good intention…
Some people do that, but they aren't good businessmen. Vacant houses lose money at a prodigious rate.
If anyone thinks this is not a problem, why would they comment, it would be irrelevant as banning salmon from participating in taikwondo
Instead everyone says how it's so false and this is just silly. This tells me - they are liars and it isn't silly at all
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> First, rates are much lower when you’re leveraging 10,000 homes at 3:1 What interest rate do you think rich people are getting? As for the Covid interest rates, those were available to everyone. Third, we're talking about buying houses, not renting.
> What interest rate do you think rich people are getting? Depends how rich. Banks have long been known to offer below market or even zero interest loans to the richer segments in exchange for/in the hope of securing other business from them.
I.e. they'll be paying the market rate one way or another.
idk how this would work effectively. There's lots of affordable homes they're just located where no one wants to live. You'd have to focus on HCOL locations and make them not so high cost which seems something that should be done at the local level. You can increase supply but investors would just snatch them up. Maybe the feds could put a cap on the value of a single-family home that an institution can own and then…
>There's lots of affordable homes they're just located where no one wants to live It's probably more accurate to say "they're just located where no one can get a job." You can give up you SWE job or whatever and move to a small town/rural area, but you're not going to convince anyone to give you a mortgage off your income from the subway at the local truck stop, or whatever labor gig you can get at the local industri…
It's strange to me that moving to LCOL wasn't a much bigger thing during the period when everyone was working remotely.
Interesting to see that he did not issue an executive order to ban this but called on congress to do so. This is just pandering to the base and election signaling and nothing else, at least for now.