Mac's fix for the Real Estate crisis

[iamwhatiseem]

The mortgage holders were bailed out 100 cents on the dollar, including profits - AND - they were also given the homes after the people living in the home were forced out.

No they weren't.

Yes they were

 

[MarathonMike]

Housing is the most important and largest cost for most Americans, and right now its expense is causing significant harm to the economy. If I were omnipotent, here's what I would do:

1. Private Equity/REIT Ownership of Individual Residential Properties
The biggest and least-known cause of this mess. I would disallow REITs, Private Equity companies and other corporations from owning and renting out single family homes. In order to both soften the blow to these companies and prevent a real estate collapse, I would allow a ten-year liquidation schedule and provide good large huge massive tax advantages along the way. The significant increase in homes would make them more affordable. We may even need to provide tax advantages to homeowners who see a certain percentage drop in their home value. But if there is an economic crisis in this country, it starts HERE.

2. Tiny Homes
There is a pretty positive movement in the area of small, eco-friendly, high tech homes, many for $40,000 and less. I would encourage, advocate for, and provide tax advantages for the creation of large-scale developments of these homes. All would be controlled by HOAs that insure proper exterior maintenance and quality. Tax advantages would be provided in the early years as the number of these developments increase.

Perfect? Nope. Could some problems exist here? Yep. And, like America used to be able to do, we'd identify them and intelligently address them.

Wow it finally happened! Mac posted something I agree with. Step 1 would be very tricky but I agree that institutional buying and renting of Single Family Homes is a big factor in the housing crisis.

 

[Toddsterpatriot]

Yes they were

Show me how banks were bailed out 100% for mortgages.

 

[petro]

Absolutely not true, with all due respects.

Plenty of cities have been able to keep the price of homes at a reasonable level, like the Tremendous City of East St. Louis which has many homes lower than 40k

https://www.homes.com/property/915-sycamore-st-east-saint-louis-il/vrm3yxq417mlj/

Lol.
That certainly isn't the bright new shiny houses that mac was showing. Just the sewer, electric and gas hookups would eat that 40K on a new lot before the foundation was even set.

 

[Woodznutz]

Housing is the most important and largest cost for most Americans, and right now its expense is causing significant harm to the economy. If I were omnipotent, here's what I would do:

1. Private Equity/REIT Ownership of Individual Residential Properties
The biggest and least-known cause of this mess. I would disallow REITs, Private Equity companies and other corporations from owning and renting out single family homes. In order to both soften the blow to these companies and prevent a real estate collapse, I would allow a ten-year liquidation schedule and provide good large huge massive tax advantages along the way. The significant increase in homes would make them more affordable. We may even need to provide tax advantages to homeowners who see a certain percentage drop in their home value. But if there is an economic crisis in this country, it starts HERE.

2. Tiny Homes
There is a pretty positive movement in the area of small, eco-friendly, high tech homes, many for $40,000 and less. I would encourage, advocate for, and provide tax advantages for the creation of large-scale developments of these homes. All would be controlled by HOAs that insure proper exterior maintenance and quality. Tax advantages would be provided in the early years as the number of these developments increase.

Perfect? Nope. Could some problems exist here? Yep. And, like America used to be able to do, we'd identify them and intelligently address them.

Sadly, we have chosen high density housing instead of 'sprawl'. Spawl is better for people. High density is better for the devil.

Sprawl gobbles up "valuable farmland". However, we export half of our grain production (not to mention the hogs that eat the grain and then are exported), millions of acres of corn are used for ethanol, and we eat twice as much as we should. Correct these and there is plenty of land for people to live on and enjoy.

 

[Toddsterpatriot]

Yes they were

Show me how banks were bailed out 100% for mortgages.

 

[HikerGuy83]

Housing is the most important and largest cost for most Americans, and right now its expense is causing significant harm to the economy. If I were omnipotent, here's what I would do:

1. Private Equity/REIT Ownership of Individual Residential Properties
The biggest and least-known cause of this mess. I would disallow REITs, Private Equity companies and other corporations from owning and renting out single family homes. In order to both soften the blow to these companies and prevent a real estate collapse, I would allow a ten-year liquidation schedule and provide good large huge massive tax advantages along the way. The significant increase in homes would make them more affordable. We may even need to provide tax advantages to homeowners who see a certain percentage drop in their home value. But if there is an economic crisis in this country, it starts HERE.

2. Tiny Homes
There is a pretty positive movement in the area of small, eco-friendly, high tech homes, many for $40,000 and less. I would encourage, advocate for, and provide tax advantages for the creation of large-scale developments of these homes. All would be controlled by HOAs that insure proper exterior maintenance and quality. Tax advantages would be provided in the early years as the number of these developments increase.

Perfect? Nope. Could some problems exist here? Yep. And, like America used to be able to do, we'd identify them and intelligently address the problem.

Well, America doesn't do that anymore.

Great. 2 ideas that both involve government regulation.

What a great idea.

 

[Admiral Rockwell Tory]

Absolutely not true, with all due respects.

Plenty of cities have been able to keep the price of homes at a reasonable level, like the Tremendous City of East St. Louis which has many homes lower than 40k

https://www.homes.com/property/915-sycamore-st-east-saint-louis-il/vrm3yxq417mlj/

That's great except the life expectancy of the owners would be measured in hours, especially if they were the wrong color.

 

[MarathonMike]

Housing is the most important and largest cost for most Americans, and right now its expense is causing significant harm to the economy. If I were omnipotent, here's what I would do:

1. Private Equity/REIT Ownership of Individual Residential Properties
The biggest and least-known cause of this mess. I would disallow REITs, Private Equity companies and other corporations from owning and renting out single family homes. In order to both soften the blow to these companies and prevent a real estate collapse, I would allow a ten-year liquidation schedule and provide good large huge massive tax advantages along the way. The significant increase in homes would make them more affordable. We may even need to provide tax advantages to homeowners who see a certain percentage drop in their home value. But if there is an economic crisis in this country, it starts HERE.

2. Tiny Homes
There is a pretty positive movement in the area of small, eco-friendly, high tech homes, many for $40,000 and less. I would encourage, advocate for, and provide tax advantages for the creation of large-scale developments of these homes. All would be controlled by HOAs that insure proper exterior maintenance and quality. Tax advantages would be provided in the early years as the number of these developments increase.

Perfect? Nope. Could some problems exist here? Yep. And, like America used to be able to do, we'd identify them and intelligently address them.

I agree with you that tiny homes and especially planned tiny home developments are part of the housing crisis solution. The devil is always in the details, but it is clear that a 2000 sq ft house is already out of reach for most young buyers.

 

[petro]

"All would be controlled by HOAs that insure proper exterior maintenance and quality."

^^^^
That part is a big **** no for me.
I would never live in a HOA community.
Just another expensive cost with little return except for the Karen's running it.

 

[Polishprince]

That's great except the life expectancy of the owners would be measured in hours, especially if they were the wrong color.

You may have a point there, the vast majority of homicide victims in East St. Louis are of the African American persuasion.

 

[HikerGuy83]

I agree with you that tiny homes and especially planned tiny home developments are part of the housing crisis solution. The devil is always in the details, but it is clear that a 2000 sq ft house is already out of reach for most young buyers.

Who the hell needs 2000 sq ft?

In the 60's and 70's people raised large families with 1,200 sq ft.

We've gotten way to entitled.

Another thing is basements. Cheap living space. Why are they not done anymore or in some locations.

I hear things like....to costly. Bullshit.

 

[petro]

Who the hell needs 2000 sq ft?

In the 60's and 70's people raised large families with 1,200 sq ft.

We've gotten way to entitled.

Another thing is basements. Cheap living space. Why are they not done anymore or in some locations.

I hear things like....to costly. Bullshit.

Depends on soil conditions and water table in many areas.

 

[Admiral Rockwell Tory]

Depends on soil conditions and water table in many areas.

Yeah, not too many basements in Florida.

 

[petro]

Yeah, not too many basements in Florida.

Even in MN some areas are not appropriate.
Our house is only a lookout basement that's three feet deep.
About a block from a huge swamp with a high water table. Not a single house in neighborhood with a full basement. A few miles away they do.

 

[Admiral Rockwell Tory]

Even in MN some areas are not appropriate.
Our house is only a lookout basement that's three feet deep.
About a block from a huge swamp with a high water table. Not a single house in neighborhood with a full basement. A few miles away they do.

There are lots of areas in Kentucky where I grew up where the bedrock is so close to the surface, you would have to blast out a basement.

 

[petro]

There are lots of areas in Kentucky where I grew up where the bedrock is so close to the surface, you would have to blast out a basement.

Northern MN is the same issue. Solid granite just under a thin layer of soil.

 

[HikerGuy83]

Depends on soil conditions and water table in many areas.

That impacts costs. If you can double your floor space, it's pretty cheap all the way around. And you are pouring the foundation one way or the other.

 

[HikerGuy83]

There are lots of areas in Kentucky where I grew up where the bedrock is so close to the surface, you would have to blast out a basement.

Hard to believe we can put men on the moon, put in artificial hearts, but can't economically dig a basement. Even a daylight basement work (only 4 ft underground).

I ask that question in phoenix and get told....too expensive. I say bullshyte.

 

[HikerGuy83]

Northern MN is the same issue. Solid granite just under a thin layer of soil.

We are not talking huge area or volume for a "tiny house". 900 sq ft is 30x30.

But it's not a point I am going to argue. I've seen it done. I can't speak to costs.

In the midwest, Kansas City area, just about all homes had basements. It's just to simple and inexpensive to not do.