Who the fuck cares about wealth? Unless you’re borrowing against it or other very specific circumstances, wealth means nothing.
Generally the price of homes only matters to first time buyers. If you’re moving to a new home then price doesn’t because if prices are up, you pay more but you also sell for more so it’s a wash.
He doesn’t want to bring real estate prices down because it’ll hurt his and his buddies tax shenanigans that are only available to the rich
I care because my family situation is different from what it was 11 years ago when I bought my house. Trouble is, houses like I would upgrade to have appreciated much faster than what my starter home has, and we are single income, so I am stuck too.
Don't get me wrong, I'm thankful I'm on the bottom rung of the home ladder, but it would be nice to get a different layout and lot style than my current that doesn't meet my needs quite so well.
That was a big catalyst after the 2008 mess. I bought my first house in 2010 and there were loads of short sale houses where the mortgage was quite underwater so they'd negotiate to essentially let the bank do the deal and walk away without foreclosure.
A negative to this is as someone who had already had my mortgage even halfway through underwriting to essentially be as much approved as possible without having chosen a house, the banks would still take quick close lowball cash offers. Which of course drove homes away from a first time buyer like myself to investors and speculators. I lost two that I put offers on both of which to smaller cash offers. I gave up on short sales after that and just bought from a seller.
If you can't tell from my tone of this or my other long rant, I fucking hate banks/lenders and it's my mission to make sure they get as little as possible from me.
I can’t speak for every local govt but it typically doesn’t work like that. Taxes are based on a millage rate. For example, my county did a reassessment of all the houses in the county. Home values have ~doubled since the last assessment but our taxes stayed roughly the same because they just change the millage rate.
If local govts got more money when real estate prices rise, they’d be swimming in money. But they propose and pass a budget. The only reason your taxes will rise is because their budget became bigger, not because real estate values changed
Last time housing prices went down, there ended up being a lot of people who owed more on their houses than those houses were worth. The banks took their houses, sold them at firesale prices, and then went after the former owners (who were now renters) for the rest of what they owed.
There were several different issues at play there. Being underwater on your mortgage isn’t great but it won’t make the bank repossess it. You have to stop paying your mortgage for that to happen.
That happened in most cases because they had variable rate mortgages. When interest rates skyrocketed, so did people’s monthly payments which made them unable to afford them.
The real lesson for consumers was to never get variable rate loans, always lock in that interest rate, you can always refinance later if interest rates go down
Who the fuck cares about wealth? Unless you’re borrowing against it or other very specific circumstances, wealth means nothing.
Generally the price of homes only matters to first time buyers. If you’re moving to a new home then price doesn’t because if prices are up, you pay more but you also sell for more so it’s a wash.
He doesn’t want to bring real estate prices down because it’ll hurt his and his buddies tax shenanigans that are only available to the rich
Yeah, that's my read too. Only people who own tons of property really care about home prices.
I care because my family situation is different from what it was 11 years ago when I bought my house. Trouble is, houses like I would upgrade to have appreciated much faster than what my starter home has, and we are single income, so I am stuck too.
Don't get me wrong, I'm thankful I'm on the bottom rung of the home ladder, but it would be nice to get a different layout and lot style than my current that doesn't meet my needs quite so well.
True, I mean care in "that" way
If you want to move to a new home but your mortgage is underwater then it kind of matters.
That was a big catalyst after the 2008 mess. I bought my first house in 2010 and there were loads of short sale houses where the mortgage was quite underwater so they'd negotiate to essentially let the bank do the deal and walk away without foreclosure.
A negative to this is as someone who had already had my mortgage even halfway through underwriting to essentially be as much approved as possible without having chosen a house, the banks would still take quick close lowball cash offers. Which of course drove homes away from a first time buyer like myself to investors and speculators. I lost two that I put offers on both of which to smaller cash offers. I gave up on short sales after that and just bought from a seller.
If you can't tell from my tone of this or my other long rant, I fucking hate banks/lenders and it's my mission to make sure they get as little as possible from me.
Local governments care, because property taxes are based on value. Affordable homes = less government revenue.
I can’t speak for every local govt but it typically doesn’t work like that. Taxes are based on a millage rate. For example, my county did a reassessment of all the houses in the county. Home values have ~doubled since the last assessment but our taxes stayed roughly the same because they just change the millage rate.
If local govts got more money when real estate prices rise, they’d be swimming in money. But they propose and pass a budget. The only reason your taxes will rise is because their budget became bigger, not because real estate values changed
The words of a man who has never faced an emergency.
Last time housing prices went down, there ended up being a lot of people who owed more on their houses than those houses were worth. The banks took their houses, sold them at firesale prices, and then went after the former owners (who were now renters) for the rest of what they owed.
There were several different issues at play there. Being underwater on your mortgage isn’t great but it won’t make the bank repossess it. You have to stop paying your mortgage for that to happen.
That happened in most cases because they had variable rate mortgages. When interest rates skyrocketed, so did people’s monthly payments which made them unable to afford them.
The real lesson for consumers was to never get variable rate loans, always lock in that interest rate, you can always refinance later if interest rates go down
There was also a wave of layoffs around that time, which was another way to get foreclosed.