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"Real estate cannot simultaneously be affordable and a good investment." As soon as someone becomes a homeowner, it becomes in his/her best interests to make s
by api 9y ago
"Real estate cannot simultaneously be affordable and a good investment."
As soon as someone becomes a homeowner, it becomes in his/her best interests to make sure others cannot become homeowners at anything but a higher price. It's one of the most extreme perverse incentives in modern economies.
- Retric 9y agoTaxes can be a counterpoint to this. So, you want low value unless you're going to sell soon.
- davidw 9y agoUnless you live somewhere like California (Prop 13) or Oregon (Measures 5 & 50) where taxes don't track home price increases.
- raldi 9y agoTo provide a little more detail on davidw's comment: In several US states, your property tax is locked in when you buy a house. So you could have two identical houses next door to each other, one last sold in 1975, the other 2015, and their property taxes would likely differ by a factor of at least 30x.
- mikeyouse 9y agoTo Raldi's point.. Two random houses near Pacific Heights: https://i.imgur.com/kltiDm4.png?1 https://i.imgur.com/kltiDm4.png?1 But at least people with $10 million houses are spared the indignity of paying for local services.