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> that reassessment is capped so when the market goes crazy people aren't driven out of their homes By definition, the people who would be "driven out" have se

by jvm 10y ago

> that reassessment is capped so when the market goes crazy people aren't driven out of their homes By definition, the people who would be "driven out" have seen their home values wildly appreciate and they have by that token become substantially wealthy. This is like saying that if someone is on food stamps but then becomes a millionaire, it's unfair to take away their foodstamps or raise their tax rate.

jacalata 10y ago
No, it's like saying that when someone has an illiquid asset theoretically worth $1 million but not actually capable of being traded for cash, it is unfair to take away their food stamps and leave them with no way to buy food. The general idea is that it is impossible to trade in the value of your house for any replacement for 'spend my retirement in the area I spent my working life in', because the other houses that fulfil that requirement will also have appreciated in value. Edit: I mean, even actual food stamps don't make you sell your house to qualify.
- ScottBurson 10y ago
  This is what home equity loans are for.
- seanp2k2 10y ago
  ...and it's based on the assumption that it is one's right to continue living in a place just because they've lived there for a few decades, current market conditions be damned.
breischl 10y ago
Pretending that home equity is like a bank account is just silly. They're wealthy, but can only access that wealth by moving somewhere else (probably out of state), becoming homeless, or taking on potentially risky bets like a reverse mortgage.
st3v3r 10y ago
So how do they get that wealth while still being able to live in their home? Or, to put it another way, why should they no longer be able to live in their home just because the market went crazy?
- closeparen 10y ago
  >why should they no longer be able to live in their home just because the market went crazy The market didn't go crazy, it saw an uptick in demand. They should be booted because their homes should be replaced with high-rises with enough room for them AND the new demand.
  - st3v3r 10y ago
    Again, why? What did the people who bought that house do to deserve getting kicked out of it?

by jvm 10y ago

jacalata 10y ago

No, it's like saying that when someone has an illiquid asset theoretically worth $1 million but not actually capable of being traded for cash, it is unfair to take away their food stamps and leave them with no way to buy food. The general idea is that it is impossible to trade in the value of your house for any replacement for 'spend my retirement in the area I spent my working life in', because the other houses that fulfil that requirement will also have appreciated in value. Edit: I mean, even actual food stamps don't make you sell your house to qualify.

ScottBurson 10y ago
This is what home equity loans are for.
seanp2k2 10y ago
...and it's based on the assumption that it is one's right to continue living in a place just because they've lived there for a few decades, current market conditions be damned.

breischl 10y ago

Pretending that home equity is like a bank account is just silly. They're wealthy, but can only access that wealth by moving somewhere else (probably out of state), becoming homeless, or taking on potentially risky bets like a reverse mortgage.

st3v3r 10y ago

So how do they get that wealth while still being able to live in their home? Or, to put it another way, why should they no longer be able to live in their home just because the market went crazy?

closeparen 10y ago
>why should they no longer be able to live in their home just because the market went crazy The market didn't go crazy, it saw an uptick in demand. They should be booted because their homes should be replaced with high-rises with enough room for them AND the new demand.
- st3v3r 10y ago
  Again, why? What did the people who bought that house do to deserve getting kicked out of it?