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“When you sell the property or refinance the loan, they take up to 20% of the appreciation. The homeowner gets to keep 80%," he said. That could be a lot of mo
by yuppie_scum 4y ago
“When you sell the property or refinance the loan, they take up to 20% of the appreciation. The homeowner gets to keep 80%," he said.
That could be a lot of money someday if you stay in the house long enough.
- arcticbull 4y agoIt's also setting up terrible incentives for the state to continue to see houses appreciate instead of making them more affordable. This makes wholesale housing reform even less likely than it already is, the state government is just getting its beak wet. Instead of you know, building more houses so that houses can be affordable instead of a good investment. Wanting housing to be both affordable and a good investment is a fantastic example of 'no take only throw' economics.
- deleted 4y ago[deleted]
- hgsgm 4y agoLol it's not a loan, the state is literally buying equity in the property, same as a VC does. CA is now a REIT.