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They'll buy their own homes? Through cheap government sponsored mortgages? Add that to the list of government spending that will expand under UBI. They'll move

by jonfw 6y ago

They'll buy their own homes? Through cheap government sponsored mortgages? Add that to the list of government spending that will expand under UBI. They'll move to better neighborhoods? What's going to happen to the people living in those neighborhoods? It's not like there are houses sitting vacant...

11thEarlOfMar 6y ago
Sure, no government incentives required. The median home price in the US is $226,000. A typical mortgage payment on that mortgage is $1,100. Adding $1,000/month will put many renters above the minimum income they'd need. Keep in mind, a married couple will be getting $2,000/month. There will be vacancies for the same reasons. People moving up-market. Highest end homes will also increase in value. Everybody moves up, and homeless folks who are homeless due to loss of income will have a place to live.
- jonfw 6y ago
  The majority of our mortgage market is govt guaranteed at artificially low interest rates (i.e. the US govt is taking losses on the time value of that money)- that was my point. Everybody moves up- meaning more homes being built- so you'd expect this to increase house production in the US, correct? So, despite a disincentive for low payed laborers (like those who do construction) to go to work, the housing market will not just continue, but actually become more productive? That $1100 a month- doesn't include home insurance, doesn't include property taxes, and assumes a $60k down payment, correct? Seems like a charitable number to pick.
  - 11thEarlOfMar 6y ago
    Artificially low interest is not a guarantee. It's an opportunity for the time being. They are already paying rent, and if married, they get $2,000. If their rent is $600, they would have $2,000/month to save a down payment and then have $2,600 to buy a median priced home. That's enough to cover insurance and property taxes. The standard down payment is 20%, so a $226k home would be $45,200.

by jonfw 6y ago

11thEarlOfMar 6y ago

Sure, no government incentives required. The median home price in the US is $226,000. A typical mortgage payment on that mortgage is $1,100. Adding $1,000/month will put many renters above the minimum income they'd need. Keep in mind, a married couple will be getting $2,000/month. There will be vacancies for the same reasons. People moving up-market. Highest end homes will also increase in value. Everybody moves up, and homeless folks who are homeless due to loss of income will have a place to live.

jonfw 6y ago
The majority of our mortgage market is govt guaranteed at artificially low interest rates (i.e. the US govt is taking losses on the time value of that money)- that was my point. Everybody moves up- meaning more homes being built- so you'd expect this to increase house production in the US, correct? So, despite a disincentive for low payed laborers (like those who do construction) to go to work, the housing market will not just continue, but actually become more productive? That $1100 a month- doesn't include home insurance, doesn't include property taxes, and assumes a $60k down payment, correct? Seems like a charitable number to pick.
- 11thEarlOfMar 6y ago
  Artificially low interest is not a guarantee. It's an opportunity for the time being. They are already paying rent, and if married, they get $2,000. If their rent is $600, they would have $2,000/month to save a down payment and then have $2,600 to buy a median priced home. That's enough to cover insurance and property taxes. The standard down payment is 20%, so a $226k home would be $45,200.