How to restore home values, save the environment and cut taxes

Discussion in 'Economy' started by Toronado3800, Aug 2, 2011.

  1. Toronado3800
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    Toronado3800 VIP Member

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    The answer is to build fewer homes and yes this is good for the environment and will cut our taxes.

    I believe home prices are driven by a combination of supply, demand, and interest rates. Interest rates can not possibly get much lower so that is no help. Demand can only be increased by increasing the number of Americans which will slowly go up.

    -We can however help supply while lowering taxes by making conversion of low density "farming" lots to medium density residential more difficult. This will limit the supply of homes on the market thus raising prices.

    -How does this lower taxes? Well you will not be paying to build new roads, build new highways or build the other water, electric and sewage infrastructure. I know some of these are quasi-privately operated but tax breaks galore and other funding is given to these projects.

    The next point with lower taxes also should gain support of the environmentalists. Fewer neighborhoods will be erected in flood plains if we do not liberally continue to rezone the flood plains and provide public welfare for their construction in these environmentally sensitive areas.

    Coupled with lack of flood plain growth is lack of suburban sprawl in general. Urban heat islands contribute to man made global warming if the houses are occupied or unoccupied.

    -Also the pro-American military types should be happy with the plan because if the St Louis metropolitan area slows growth near its current sixty mile diameter our commutes will stop getting longer and we will drive up the price of Middle Eastern oil more slowly.

    Who should be against this?

    Farmers looking to retire by selling their land to developers may loose something. Oh well. Perhaps we should keep the farm land farm land in the event world population continues to grow.

    Will folks be forced to buy "out of date" houses? Perhaps to some extent. Eventually this is bound to happen anyway though as we run out of room. I am also not saying "no new houses". Just that I would like to slow the growth.

    Any ideas how to implement it? Guess Federal dollars will have to be withheld from states with xx% new housing growth to get the sunbelt in line. Do I feel sorry for developing states? Not really. This is for the benefit of America as a whole. When housing supply sinks building should increase. In my opinion it is big government welfare building roads and infrastructure for developers which makes new housing so attractive.

    What do you all think?
     
  2. ShackledNation
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    ShackledNation Libertarian

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    The prices of homes should never have been so high. The reason they were high was because of inflationary monetary policy. Newly created money flooded the housing market because it was the "next big investment." In reality it was an unsustainable market and it collapsed. Housing prices should not go up. You are correct that new homes should not be built, because many are vacant. And guess what? People aren't building a bunch of new homes. Home production has slowed dramatically, putting the construction industry in one of the worst spots of all sectors of the economy.

    Housing prices should never have been so high, and now they are returning to normal. We should not try to restore the unsustainable prices. The market price of a house will clear the housing market. Intervention made prices far too high. You are calling for more intervention to bring them back up to where they should never have gone, which is insane. You don't need government to do anything. When prices are low, that means there is greater supply, and producers will not see the need to produce as many homes.
     
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  3. asterism
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    asterism Congress != Progress

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    Converting low density farming lots to medium density residential will not save infrastructure costs. More people in any area require more utility provisions, more (and wider) roads, and more water.

    Your proposed solution is already being implemented due to market forces. It's cheaper to buy a vacant house than it is to build a new one in most areas.
     
  4. waltky
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    waltky Wise ol' monkey Supporting Member

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    Buyin' a house not such a good investment after all...
    :eusa_eh:
    Home prices take another dip
    August 10, 2011: Home prices slid 2.8% in the second quarter of 2011, according to the National Association of Realtors.
     
  5. signelect
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    signelect BANNED

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    I think that the key is to buy what you can afford not what your ego wants. People were allowed to finance homes that they did have a chance in Hell of paying for and Freddie and Fannie let them do it and then paid themselves bonuses to boot. The tax payer was worked over by congress. Elect a new President and a new Congress with term limits.
     
  6. uscitizen
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    uscitizen Senior Member

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    Why should we restore artificially inflated home "values"?
     
  7. Brutus
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    Brutus Senior Member

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    absurd since the supply is already enough to last for years! The best way to help the market is get all the forclosures over with tomorrow so the market quickly hits a stable bottom that will in turn produce stable supply, demand and price.
     
  8. Toronado3800
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    Toronado3800 VIP Member

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    Brutus, we agreed. I want to removal artificial government support for creating new, extra houses.

    You want to have big government force the banks to dump houses they now have in forclosure and take bigger losses on our bailout?

    I am amazed by the creativity of your liberal thinking. Banks do a poor job of selling houses. But we probably cant put an ebay like timer on them while demand is soooo low.
     
  9. Truthmatters
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    Truthmatters BANNED

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    So wealthy people should be made to give up their mansions?

    The reason people bought expensive houses is because all houses were expensive.


    People were told to buy now because it was going to just get worse.

    That is how people were talked into so many sub primes.

    they thought they could buy a house and in a couple of years sell it for more than they paid taking that money and putting a down on another house.

    To pretend that is not what the market was telling buyers is to lie.
     
    Last edited: Aug 12, 2011
  10. Oddball
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    Oddball BANNED Supporting Member

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    I think you'd make a good Commissar of Housing, tovarich. :cuckoo:
     

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