Tying the mortgage repayment rate to the median salary of a single individual would go some way towards fixing things then, but that would mean putting price caps on houses which would devalue the currency and also need anti-cartel laws (eg. Laws mandating a maximum amount of homes one can own, as cartels might see artificially low prices as an opportunity to buy up more houses).
Artificially constraining parts of banking and all of residential real estate is likely to have other unforeseen effects on the economy, but may still be worth it.
Another alternative is starting a state bank in which citizens can be part of a rent-to-own mortgage, with minimum but achievable life time repayments. If they don’t meet those minimum payments, the house is sold and the profit from the sale is portioned out between the state bank and the mortgage payer in proportion to how much % they paid off.
That’s a win win, as theyre probably getting a big cash payment when struggling, and the state bank then gets to relist the home.
Bring it on. Maximum 5 “homes” allowed per person, 7 for any family unit, children under 25 ineligible for ownership except as a post-death inheritance.
Anything above those limits is landlording-as-a-business, and combined with laws that make ANY business ownership of residential properly illegal, would force landlords to actually work for a living by getting day jobs.
Plus, have an extended “speculation tax” that hits any place being sold with a 100% tax on the first 2 years of owner-occupancy, with a straight-line decline to 0% in the eighth year. Any home being sold where the owner has never lived in it for a minimum of 2 years? 100% tax on the sale of the house straight out of the gate, with all proceeds going to a fund for first-time home owners. Exemptions, of course, for military deployment or death or a few other issues that cannot be leveraged for fraud.
Sounds like you figured it out, since the debasement of the gold standard we locked away an inelastic good behind a mountain of debt, where prices rose to whatever interest rates would allow, providing a massive first mover advantage to those born prior. Then we wonder why nobody has kids.
If housing didn’t continue to rise how many boomers would hold it as an investment instead of downsizing and buying an appreciating asset?
This is also why Bitcoin will keep going up and everyone should own at least a little, it leverages the cantillon effect as central banks get looser and looser due to aging demographics and shrinking aggregate demand.
The more appropriate fix would be no land ownership by people or countries that don’t reside in the US, a banishment of investment companies from purchasing houses, and a hard cap of like 5 properties for any individual or company that can be owned as rental properties.
Far too many people/corporations are being landlords as a big business.
They use their profits from the house sale (which may be substantial depending on how long they’ve been there + market inflation), to rent somewhere.
That nest egg (which they’ve been paying into all this time) would give them breathing room and time to recover and get back on their feet to try again at a more stable point in thier lives.
It’s a win win because the mortgage payer gets a lump sum, and space to reassess what went wrong. The state bank gets the unpaid percentage of the home’s sale price, and then to sell the house again (under a new rent to buy mortgage arrangement).
P.S Part of how this works financially is that most of the money in an economy is created by loans issued from banks, those banks then buy Government Bonds periodically… A state bank would be another entity doing much the same thing, just with a specific purpose in mind.
How do you put price caps on houses? They vary so much in price depending on location. A shack in San Francisco costs the same as a mansion in the middle of nowhere.
No this kind of centralized approach is doomed to fail. We’re much better off with Georgism with a land value tax and the total repeal of zoning laws. People should be able to build what they want, where they want, and the land value tax captures the increases in property values as a result. When a neighbourhood becomes too expensive to afford for single family households it gets converted into apartments.
All of our housing problems come from meddlesome local politicians, their NIMBY supporters, awful zoning laws and easements, and a terrible property tax system which disincentivizes development. A very simple land value tax system along with the total removal of local politicians’ power over housing development solves all of these issues.
Sure, if you can pass the environmental requirements. And of course if any of the toxic waste leaks onto my property I’m gonna sue you for everything you’ve got.
It’s not city hall zoning laws stopping you from building toxic waste dumps. When I said people should be able to build what they want, I was talking about mixed density housing and mixed use / light commercial.
There are some good people here on Lemmy but my god are there an awful lot of obtuse, blockheaded teenagers! Get a clue!
You think the gubberment is the problem, think we can know when house prices are too much for families to afford, but can’t possibly know the same to figure out appropriate price caps, think we can’t have centralized federal laws, that “people should be able to build what they want, where they want when they want”… and that developers should be given family homes when they become too expensive so they can “replace them with apartments”.
Look bud, we’ve seen these pro-Capialist libertarian “free” market solution already. Lots of what you’ve said has gotten America where it is today: to an unlivable oligarchy.
People want something different. I’m fine with Georgism, but the rest of what you’ve written is clearly thinly veiled Libertarian and Free Market economics.
You’re just reproducing the ideology that benefits people like Peter Thiel, and Elon Musk - putting the wealthy in power.
I’d prefer a highly regulated, legally transparent, auditable, government system in power. Not people rich enough to build apartment blocks whenever and where ever they want.
Your ideas are incorrect and we’re seeing that in realtime.
Libertarians like you are LYING when they say centralized systems are doomed they’re too inefficienct the most obvious way to disprove that idea is to look at the world wars, what happens to industry during world wars? It gets NATIONALISED. Centralized under government power, we do this in war time because it’s highly efficient - despite the free market propaganda you’ve swallowed whole.
Where as Libertarian become traitors and mercenaries in war time. You may not realize it, but you’re arguing for the wrong team (are we the baddies? Yes, you are), the team that lets Nazi in, and if they have enough money, sits them in the position of advisors and department heads right next to the president.
We want democracy, rights, the freedom of a garanteed place to live… By putting that in the hands of people with “no price caps on building anything anywhere” you’re looking to destroy that freedom. You’re taking security from the poor and exchanging it for freedoms exclusively for the rich who can afford it, developer cartels, and corporations.
So you’re just reproducing the system we’re already in… That’s not a solution. That’s just reproducing the problem.
Tying the mortgage repayment rate to the median salary of a single individual would go some way towards fixing things then, but that would mean putting price caps on houses which would devalue the currency and also need anti-cartel laws (eg. Laws mandating a maximum amount of homes one can own, as cartels might see artificially low prices as an opportunity to buy up more houses).
Artificially constraining parts of banking and all of residential real estate is likely to have other unforeseen effects on the economy, but may still be worth it.
Another alternative is starting a state bank in which citizens can be part of a rent-to-own mortgage, with minimum but achievable life time repayments. If they don’t meet those minimum payments, the house is sold and the profit from the sale is portioned out between the state bank and the mortgage payer in proportion to how much % they paid off.
That’s a win win, as theyre probably getting a big cash payment when struggling, and the state bank then gets to relist the home.
Bring it on. Maximum 5 “homes” allowed per person, 7 for any family unit, children under 25 ineligible for ownership except as a post-death inheritance.
Anything above those limits is landlording-as-a-business, and combined with laws that make ANY business ownership of residential properly illegal, would force landlords to actually work for a living by getting day jobs.
Plus, have an extended “speculation tax” that hits any place being sold with a 100% tax on the first 2 years of owner-occupancy, with a straight-line decline to 0% in the eighth year. Any home being sold where the owner has never lived in it for a minimum of 2 years? 100% tax on the sale of the house straight out of the gate, with all proceeds going to a fund for first-time home owners. Exemptions, of course, for military deployment or death or a few other issues that cannot be leveraged for fraud.
Sounds like you figured it out, since the debasement of the gold standard we locked away an inelastic good behind a mountain of debt, where prices rose to whatever interest rates would allow, providing a massive first mover advantage to those born prior. Then we wonder why nobody has kids.
If housing didn’t continue to rise how many boomers would hold it as an investment instead of downsizing and buying an appreciating asset?
This is also why Bitcoin will keep going up and everyone should own at least a little, it leverages the cantillon effect as central banks get looser and looser due to aging demographics and shrinking aggregate demand.
Frankly, I LOVE the idea of cartel laws for ownership of residences.
The more appropriate fix would be no land ownership by people or countries that don’t reside in the US, a banishment of investment companies from purchasing houses, and a hard cap of like 5 properties for any individual or company that can be owned as rental properties.
Far too many people/corporations are being landlords as a big business.
We might even expand it to all private ownership, maybe…
I like your ideas, but where do they live once they get foreclosed on by the State?
They use their profits from the house sale (which may be substantial depending on how long they’ve been there + market inflation), to rent somewhere.
That nest egg (which they’ve been paying into all this time) would give them breathing room and time to recover and get back on their feet to try again at a more stable point in thier lives.
It’s a win win because the mortgage payer gets a lump sum, and space to reassess what went wrong. The state bank gets the unpaid percentage of the home’s sale price, and then to sell the house again (under a new rent to buy mortgage arrangement).
P.S Part of how this works financially is that most of the money in an economy is created by loans issued from banks, those banks then buy Government Bonds periodically… A state bank would be another entity doing much the same thing, just with a specific purpose in mind.
How do you put price caps on houses? They vary so much in price depending on location. A shack in San Francisco costs the same as a mansion in the middle of nowhere.
No this kind of centralized approach is doomed to fail. We’re much better off with Georgism with a land value tax and the total repeal of zoning laws. People should be able to build what they want, where they want, and the land value tax captures the increases in property values as a result. When a neighbourhood becomes too expensive to afford for single family households it gets converted into apartments.
All of our housing problems come from meddlesome local politicians, their NIMBY supporters, awful zoning laws and easements, and a terrible property tax system which disincentivizes development. A very simple land value tax system along with the total removal of local politicians’ power over housing development solves all of these issues.
I’ll be sure to build a toxic waste dump right beside your house.
Sure, if you can pass the environmental requirements. And of course if any of the toxic waste leaks onto my property I’m gonna sue you for everything you’ve got.
It’s not city hall zoning laws stopping you from building toxic waste dumps. When I said people should be able to build what they want, I was talking about mixed density housing and mixed use / light commercial.
There are some good people here on Lemmy but my god are there an awful lot of obtuse, blockheaded teenagers! Get a clue!
You think the gubberment is the problem, think we can know when house prices are too much for families to afford, but can’t possibly know the same to figure out appropriate price caps, think we can’t have centralized federal laws, that “people should be able to build what they want, where they want when they want”… and that developers should be given family homes when they become too expensive so they can “replace them with apartments”.
Look bud, we’ve seen these pro-Capialist libertarian “free” market solution already. Lots of what you’ve said has gotten America where it is today: to an unlivable oligarchy.
People want something different. I’m fine with Georgism, but the rest of what you’ve written is clearly thinly veiled Libertarian and Free Market economics.
You’re just reproducing the ideology that benefits people like Peter Thiel, and Elon Musk - putting the wealthy in power.
I’d prefer a highly regulated, legally transparent, auditable, government system in power. Not people rich enough to build apartment blocks whenever and where ever they want.
Your ideas are incorrect and we’re seeing that in realtime.
Libertarians like you are LYING when they say centralized systems are doomed they’re too inefficienct the most obvious way to disprove that idea is to look at the world wars, what happens to industry during world wars? It gets NATIONALISED. Centralized under government power, we do this in war time because it’s highly efficient - despite the free market propaganda you’ve swallowed whole.
Where as Libertarian become traitors and mercenaries in war time. You may not realize it, but you’re arguing for the wrong team (are we the baddies? Yes, you are), the team that lets Nazi in, and if they have enough money, sits them in the position of advisors and department heads right next to the president.
We want democracy, rights, the freedom of a garanteed place to live… By putting that in the hands of people with “no price caps on building anything anywhere” you’re looking to destroy that freedom. You’re taking security from the poor and exchanging it for freedoms exclusively for the rich who can afford it, developer cartels, and corporations.
So you’re just reproducing the system we’re already in… That’s not a solution. That’s just reproducing the problem.