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I don't disagree -- I definitely struggle with this. The problem we are solving shouldn't exist. We should live in an society where people with equal incomes sh

by jra6 10y ago

I don't disagree -- I definitely struggle with this. The problem we are solving shouldn't exist. We should live in an society where people with equal incomes should have equal access to credit. The reality is though that intergenerational wealth transfer are the primary way people acquire the necessary equity to buy homes (they get help from Mom and Dad). So I think you need both... both higher incomes, and mechanisms that create intermediary stages being renting and owning. And on being a stretch, don't disagree. I feel the incentive is to be provocative beyond reasonableness, so apologize for that! Public schools in America are suffering death from a thousand cuts. I will tell you though that when urban school turnover (largely as a result of rising housing costs) is now up to 25%/year... it becomes your primary issue pretty fast.

bkohlmann 10y ago
Are intergenerational wealth transfers the primary means to down payments across the Bay Area or the US? The latter doesn't comport with my friends experience, but I'm always easily persuaded by hard data. Any references?
- jra6 10y ago
  The hard data is piss poor. It's largely self-reported data collected by media agencies. Just google "Bank of Mom and Dad", there are lots of poorly done studies. This one is okay: http://paa2005.princeton.edu/papers/51443 http://paa2005.princeton.edu/papers/51443 The reason it's poor is because everyone has an incentive (bank, broker, parents, you) to under-report the parental funds. Parents send the gift money in advance (3 months to be exact), banks look the other way to meet equity requirements and the transaction takes place.
clairity 10y ago
"Don't disagree -- I definitely struggle with this. The problem we are solving shouldn't exist." totally understand that you can't solve the world's problems on day 1, but hopefully you're thinking of ways to address this bigger macroeconomic issue along the way, since you are already positioning your company on the social good axis. "We should live in an society where people with equal incomes should have equal access to credit." is there really a disparity among equal income earners for credit? credit getting unreasonably expensive as you move down the income scale (predatory loans and the like) seems to be the main problem you hear about in the news.

by jra6 10y ago

bkohlmann 10y ago

Are intergenerational wealth transfers the primary means to down payments across the Bay Area or the US? The latter doesn't comport with my friends experience, but I'm always easily persuaded by hard data. Any references?

jra6 10y ago
The hard data is piss poor. It's largely self-reported data collected by media agencies. Just google "Bank of Mom and Dad", there are lots of poorly done studies. This one is okay: http://paa2005.princeton.edu/papers/51443 http://paa2005.princeton.edu/papers/51443 The reason it's poor is because everyone has an incentive (bank, broker, parents, you) to under-report the parental funds. Parents send the gift money in advance (3 months to be exact), banks look the other way to meet equity requirements and the transaction takes place.

clairity 10y ago

"Don't disagree -- I definitely struggle with this. The problem we are solving shouldn't exist." totally understand that you can't solve the world's problems on day 1, but hopefully you're thinking of ways to address this bigger macroeconomic issue along the way, since you are already positioning your company on the social good axis. "We should live in an society where people with equal incomes should have equal access to credit." is there really a disparity among equal income earners for credit? credit getting unreasonably expensive as you move down the income scale (predatory loans and the like) seems to be the main problem you hear about in the news.