3 ms·

>They managed to find the one fucking way to make additional housing make being a new homeowner even more expensive, and I believe it was not by accident. Who

• deleted 1y ago
  [deleted]
• trod1234 1y ago
  > Who cares about .... Secure shelter is a necessary pre-requisite to having and raising children. The low birth-rate is a direct result of disadvantaged capital formation, selection interference, and the chaotic and growingly insecure future economically. Housing is a great and tax favored investment if you know what you are doing. Cash flow is king. That said, rent-seeking behavior is non-productive, and vile in a lot of ways, and equally regulation to address issues is so poorly written that it ends up destroying the market wholesale. If you take a look at the demographics and trends, we may actually end up having a housing surplus within a decade.
  • gruez 1y ago
    >Secure shelter is a necessary pre-requisite to having and raising children. The low birth-rate is a direct result of disadvantaged capital formation, selection interference, and the chaotic and growingly insecure future economically. Housing in Singapore is famously affordable, but it has the lowest birth rates. Same goes for Japan, or other European countries where house prices haven't skyrocketed but birthrates are still plummeting. There's just no good data backing your claim. >Housing is a great and tax favored investment if you know what you are doing. Cash flow is king. Explain. How does a house have better tax treatment and cash flow than buying a vanguard ETF? You might get to deduct your mortgage interest, but you can also deduct margin interest in a brokerage account. I can't see how signing up for a 30year commitment, 20% down payment, and 6% realtor fees is good for cash flow.
    • trod1234 1y ago
      > Housing in Singapore is famously affordable ... There's just no good data backing your claim. There is quite a bit of data backing the claim in countries whose culture includes the nuclear family. David Willetts published a book on this, he also runs a foundation called the Resolution Foundation. I'll refer you to him. The book's name is called "The Pinch". The problem with using Japan or Singapore as examples is that they are collectivist societies. The social milei is fundamentally different. > How does a house have better tax treatment and cash flow than buying a vanguard ETF. First, the risk in any stock market security today is unmanageable. Take your pick with price discovery (dark pools > 50% volume transactions), chaotic geopolitics, monetary instabilities, etc. This isn't financial advice. You should take a look at the book Rich Dad Poor Dad, the stories are mostly BS, but the financial parts works, don't get conned into taking a seminar. With real estate, you turn it into a business. Business expenses are fully deductible. You have cash flow from renters that pay mortgage after you reach a a certain point on your loan schedule. You can deduct the mortgage interest, choose when to use cash flow for a number of things including capital improvements, 1031-exchange, and the best part, you've bought it on leverage. You pay 20% for 100% of the use. Every year, 2% or more of what you owed in purchasing power evaporates, then there's depreciation and its recapture loopholes, and this is just the surface. A competent CPA, will be able to advise in more depth. Obviously this isn't financial advice, just answering your question.
• HDThoreaun 1y ago
  Many, many people care about the peace of mind of not worrying about a landlord telling them what they can do in their home or ending their lease.
  • const_cast 1y ago
    Right but the inverse of this is that those are the same people who are making housing unaffordable over time. Because when housing is an investment, that means more homes being built is threatening to your investment. Home prices going down is BAD, you want them to be as high as possible. And you can't just undo or ignore this bias, it's fundamental to the model.