5 ms·

I'm down-voting you because you haven't made an argument in the face of the issue. The flaw the assumption is that somehow 'buying' a home that is 15x your ann

by jariel 5y ago

I'm down-voting you because you haven't made an argument in the face of the issue. The flaw the assumption is that somehow 'buying' a home that is 15x your annual salary, that takes your entire life to pay off, is some kind of 'freedom'.

JayPeaEm 5y ago
Agreed. I think they're only looking at it from a financial freedom point of view. But I, too, don't see a 30-year keeps-with-inflation anchor as freedom.
- frockington1 5y ago
  What's the alternative? You need a place to live. I guess you can rent but that is constantly increasing and you get 0 equity out of it
ajxs 5y ago
What's a reasonable alternative, just pay someone else's mortgage instead? Go live in the woods and opt out of the economy entirely? A mortgage is debt, yes. However the money you put into the mortgage is wealth that you're slowly accruing. If you're just renting a property someone else owns you're not accruing anything at all. No one thinks that taking on a 20-30 year debt is a good thing. People only do it out of necessity.
- jariel 5y ago
  I'm not offering an alternative, I'm pointing out the OP didn't make an argument, or rather one that wasn't based on any reasoning. "just pay someone else's mortgage instead?" - it has nothing to do with what the owner of the property is doing with their money. If rent is a more viable option, then rent. Ontario, Canada has a soft kind of rent control that works somewhat well for renting, that's an option. Including housing in inflation calculations would be another 'option' because very low interest rates create bubbles. Focusing on affordability in zoning. Taxing rental income. Taxing homes sales over a certain price. Increasing or reducing property taxes. There are a million variables to make the housing situation work better and crude 'own vs. rent' statements without arguments are not going to help.
- mikem170 5y ago
  > What's a reasonable alternative Housing that costs half as much as it does today, and doesn't grow faster than consumer price inflation?
  - ajxs 5y ago
    What's a reasonable alternative that an individual can make today? The economic pressures that compel individuals to purchase or rent expensive property are ever-present. I agree with you that some kind of systemic regulation is probably necessary to alleviate the current state of the housing market in world cities. Holding out for political change is not a viable solution however. For a prospective owner, the longer you wait to purchase the harder it will be.

by jariel 5y ago

JayPeaEm 5y ago

Agreed. I think they're only looking at it from a financial freedom point of view. But I, too, don't see a 30-year keeps-with-inflation anchor as freedom.

frockington1 5y ago
What's the alternative? You need a place to live. I guess you can rent but that is constantly increasing and you get 0 equity out of it

ajxs 5y ago

What's a reasonable alternative, just pay someone else's mortgage instead? Go live in the woods and opt out of the economy entirely? A mortgage is debt, yes. However the money you put into the mortgage is wealth that you're slowly accruing. If you're just renting a property someone else owns you're not accruing anything at all. No one thinks that taking on a 20-30 year debt is a good thing. People only do it out of necessity.

jariel 5y ago
I'm not offering an alternative, I'm pointing out the OP didn't make an argument, or rather one that wasn't based on any reasoning. "just pay someone else's mortgage instead?" - it has nothing to do with what the owner of the property is doing with their money. If rent is a more viable option, then rent. Ontario, Canada has a soft kind of rent control that works somewhat well for renting, that's an option. Including housing in inflation calculations would be another 'option' because very low interest rates create bubbles. Focusing on affordability in zoning. Taxing rental income. Taxing homes sales over a certain price. Increasing or reducing property taxes. There are a million variables to make the housing situation work better and crude 'own vs. rent' statements without arguments are not going to help.
mikem170 5y ago
> What's a reasonable alternative Housing that costs half as much as it does today, and doesn't grow faster than consumer price inflation?
- ajxs 5y ago
  What's a reasonable alternative that an individual can make today? The economic pressures that compel individuals to purchase or rent expensive property are ever-present. I agree with you that some kind of systemic regulation is probably necessary to alleviate the current state of the housing market in world cities. Holding out for political change is not a viable solution however. For a prospective owner, the longer you wait to purchase the harder it will be.