Get Housing Industry Out Of The Tax Code?

archives said:
I think the professor underestimates the equity gained while you own the property, "Let's say you time your local market correctly and home prices rise after you buy. If you decide to sell that home, you'll still need a place to live, and you're buying in that same market with expensive home prices unless you go back to renting." Sounds logical, but he doesn't account for the equity gained, your next house may cost more but your also selling your current home for a higher cost

Article seems to be written from the perspective of one thinking about flipping homes not using them as your residence
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It also ignores that all homes are owned by someone. Renting doesn't change the MID
 
Althea said:
I have the moron (Right) on ignore, but his argument is valid on all points. Your fluff piece was light on facts, and way too wordy. Nobody buys a home because they'll save a few buck on interest deductions.

And you never address the way education is funded in this nation which is directly tied to home ownership. The problem isn't encouraging people to borrow money. The problem is lending money to people who don't qualify, for properties that aren't worth the valuation.
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Fluff piece? Why because you disagree with it?

Do you think single family homes that are rented out have no owners and thus those homes don't pay property taxes?
 
Teflon Don said:
Agree with #1

#2 is bogus and not supported by data.

Agree with OP. Government should not be in housing business. That is how you get Fannie Mae and Freddie Mac and financial crisis.

Additionally owning a house has the negative economic effects of keeping people from moving to newer opportunities because of inability to sell.
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Upwardly mobile people tend to rent for that reason. Ignored in this discussion, is that the homeowner foots the bill for funding of local police/fire/school/services, etc. The property taxes are more than the MID in many cases.
 
cawacko said:
Fluff piece? Why because you disagree with it?

Do you think single family homes that are rented out have no owners and thus those homes don't pay property taxes?
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Which is exactly why it's a fluff piece. There is, contrary to his claim, 100% home ownership.

But let's expand on his concept of saving. What can you earn on savings, and what does that do for the economy?
 
Althea said:
Which is exactly why it's a fluff piece. There is, contrary to his claim, 100% home ownership.

But let's expand on his concept of saving. What can you earn on savings, and what does that do for the economy?
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So why are you constantly complaining about how schools are funded?
 
cawacko said:
So why are you constantly complaining about how schools are funded?
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Now it makes sense. You cited an ex Lehman futures trader, and you wonder why he's considered a buffoon? If you don't understand the correlation between school funding and property taxes, I don't know what to tell you. Or your imaginary Harvard friend.
 
cawacko said:
So why are you constantly complaining about how schools are funded?
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So? How much can you earn by saving? He suggests putting money into the market instead of buying a home. He incorrectly assumes that the majority of home purchases are for investment. He also ignores the real reason for the market crash....something he had a hand in creating.

So you invest in a mutual fund. But fewer people in his fantasy world are buying homes, so banks/construction/durable goods are all down. So much for investing.

Now you have inflated rents, because of a shortage of rentals. Something you love to harp on.


So tell my why this predator stimulates you so much?
 
Althea said:
Now it makes sense. You cited an ex Lehman futures trader, and you wonder why he's considered a buffoon? If you don't understand the correlation between school funding and property taxes, I don't know what to tell you. Or your imaginary Harvard friend.
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Wow. Reading is fundamental my man.
 
I don't know how to break it down, but I purchased in no small percentage based on the tax advantage. IOW, but for the tax advantage, I could not have bought at all. It would not have been a choice offered. So I scraped up
127 grand to beat the PMI, and enjoyed the big annual drop in the AGI when the loan was mostly interest. To assume that didn't enter into the decision process is wrong. Also considered was the American dream part,
part was that somehow the house was better than any place I had ever lived, part was the fact that I could do with it as I wished. If you rent you can't stuff out and make it like you want. And part was riding the supposed equity train.

But interest deduction definitely entered into the equation bigly. Even now it's like a 20 grand write off. And if I never bought the first I could never get the second.
Houses for rent can provide retirement income. So you need to own a rental property for that to happen.

Anyway breaking it out is difficult, but put it this way. Handing some other guy a couple grand every month with no deduction, no ownership, no equity, and no American dream got old old old.
 
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Micawber said:
I don't know how to break it down, but I purchased in no small percentage based on the tax advantage. IOW, but for the tax advantage, I could not have bought at all. It would not have been a choice offered. So I scraped up
127 grand to beat the PMI, and enjoyed the big annual drop in the AGI when the loan was mostly interest. To assume that didn't enter into the decision process is wrong. Also considered was the American dream part,
part was that somehow the house was better than any place I had ever lived, part was the fact that I could do with it as I wished. If you rent you can't stuff out and make it like you want. And part was riding the supposed equity train.

But interest deduction definitely entered into the equation bigly.
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So you purchased your home as an investment, as the OP suggests?


Edit...PMI is tax deductible too ;)
 
Althea said:
Indeed. Try it sometime. Now are you going to defend his investment suggestions or aren't you? We can wait for you to call 'Harvard' if you need to.
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Do you not have friends or do you not have friends that went to certain schools? Honest question? Do you not know anyone who went to an Ivy League school? I mean not everyone does. I don't know your background. Maybe people didn't go to college where you come from.
 
cawacko said:
Do you not have friends or do you not have friends that went to certain schools? Honest question? Do you not know anyone who went to an Ivy League school? I mean not everyone does. I don't know your background. Maybe people didn't go to college where you come from.
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My issue with 'Harvard' is that the comments he supposedly made were so clueless, and illustrated a gross lack of ability to comprehend such a simple yet common issue. So he either doesn't exist, or he wasn't a very good student. Just because your state education system suffers under prop 13 guidelines, that doesn't mean that the rest of the country has similar tax structure.

Someone who graduated Harvard wouldn't be so insular.


I guess your continued avoidance means you cannot defend the Lehman shill's claims.
 
Althea said:
My issue with 'Harvard' is that the comments he supposedly made were so clueless, and illustrated a gross lack of ability to comprehend such a simple yet common issue. So he either doesn't exist, or he wasn't a very good student. Just because your state education system suffers under prop 13 guidelines, that doesn't mean that the rest of the country has similar tax structure.

Someone who graduated Harvard wouldn't be so insular.


I guess your continued avoidance means you cannot defend the Lehman shill's claims.
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So your argument is still we need to inflate property values or else local services will suffer. That's brilliant

You notice I put a question mark in the subject line? It's a discussion board. Novel concept right
 
cawacko said:
So your argument is still we need to inflate property values or else local services will suffer. That's brilliant
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One of your stupidest comments. Who the fuck said anything about inflating values?

You notice I put a question mark in the subject line? It's a discussion board. Novel concept right
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I have to wonder why you always 'discuss' things that you aren't qualified to comment on?

You have no opinion of his idiotic suggestions?
 
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