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Can anyone shed some light on why all this government intervention exists? In other words, why so much propaganda/pressure from the man to buy houses?

by avn2109 13y ago

don_draper 13y ago
Some people think, rightly or wrongly, that home ownership: * Results in citizens that care more about the neighborhood * Nudges people into saving for retirement * Allows the average Joe to take advantage of inflation (this is true IMO). House goes up in value, so does their net worth.
- dandelany 13y ago
  To expand on the retirement bit - a purchased home is a huge portion of most people's retirement savings, from a net worth perspective. Not having to pay rent makes it much easier for many people to get by on just savings/pension/a social security check every month. Assuming, that is, they've been able to pay off their mortgage by then.
- bradleyjg 13y ago
  On the second and third points, all other things being equal, (which they aren't because of government intervention) people would be far better off with a diversified portfolio of debt and equity than a house.
  - walshemj 13y ago
    And when Interest rates return to normal and they lose 30% or more in a bond crash on their "safe" government bonds what then? A diversified portfolio should also include property which is why I have investments in REITS as well as shares.
    - bradleyjg 13y ago
      There are many REITs traded on stock markets and included in broad total market funds including residential, commercial, retail, and industrial. E.g. AVB, VNO, EQR, SPG and many others.
- walshemj 13y ago
  And it is also a good for upward social mobility owning a home means your children can inherit it
dingaling 13y ago
Home ownership is seen as a remarkable mechanism of social pacification; the political theory is that people owning homes are less prone to take actions ( protest, crime or giving up work ) that threaten their means of retaining their home.

Can anyone shed some light on why all this government intervention exists? In other words, why so much propaganda/pressure from the man to buy houses?

by avn2109 13y ago

Can anyone shed some light on why all this government intervention exists? In other words, why so much propaganda/pressure from the man to buy houses?

don_draper 13y ago

Some people think, rightly or wrongly, that home ownership: * Results in citizens that care more about the neighborhood * Nudges people into saving for retirement * Allows the average Joe to take advantage of inflation (this is true IMO). House goes up in value, so does their net worth.

dandelany 13y ago
To expand on the retirement bit - a purchased home is a huge portion of most people's retirement savings, from a net worth perspective. Not having to pay rent makes it much easier for many people to get by on just savings/pension/a social security check every month. Assuming, that is, they've been able to pay off their mortgage by then.
bradleyjg 13y ago
On the second and third points, all other things being equal, (which they aren't because of government intervention) people would be far better off with a diversified portfolio of debt and equity than a house.
- walshemj 13y ago
  And when Interest rates return to normal and they lose 30% or more in a bond crash on their "safe" government bonds what then? A diversified portfolio should also include property which is why I have investments in REITS as well as shares.
  - bradleyjg 13y ago
    There are many REITs traded on stock markets and included in broad total market funds including residential, commercial, retail, and industrial. E.g. AVB, VNO, EQR, SPG and many others.
walshemj 13y ago
And it is also a good for upward social mobility owning a home means your children can inherit it

dingaling 13y ago

Home ownership is seen as a remarkable mechanism of social pacification; the political theory is that people owning homes are less prone to take actions ( protest, crime or giving up work ) that threaten their means of retaining their home.