We tried this in Oz. House prices immediately go up 5k.
Government effectively funding the housing bubble.
Some part of me thinks that many of the backers of this idea want exactly that.
I suspect that the goal with this program is to advantage first time home buyers over their competitors, such as REITs and hedge funds that have been indiscriminately buying up housing across the country. Obviously the devil is in the details but there’s a way to implement this that makes sense and isn’t insane, but we’ll have to wait until the bill passes to see if that’s the path we take.
That’s not what happened the last time they did this in the states.
The housing crisis won’t end until (among other things) corporations cannot freely own limitless numbers of single family homes. We will see perpetual renting because it’s effectively passive income for the corporations, and they have deeper pockets than 99.9% of individuals.
As companies own more and more, but don’t sell, supply dwindles, and the bubble never bursts.
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I recently read that a place in MD (montgomery county, I think?) Is taking advantage of the high interest rates, which effectively block private housing development projects, to fund low-income public housing projects with developers who would normally only go with private clients. Building more multi-unit housing and making the supply publicly owned is just about the only way I see the housing crisis improving at this point
It won’t end until we have significant growth in the supply of housing units in the places people want to live relative to the number of people we have. Anything else is just window dressing.
We’ve been chronically underbuilding for decades, while population continued to grow. What would you expect to happen?
Biden throwing Americans the smallest bone possible with this tax credit. The ruling class has no interest in offering anything meaningful unless forced.
Trolls seem to be saying nothing is better than something. Didn’t he just lower the credit card penalties? Didn’t he lower the cost of insulin?
Add 2 zeroes
You’ve gotta be fucking kidding me. We just bought our first home last year and found out then that the tax credits I grew up hearing about ended several years ago and now it’s back now that I’m no longer qualified :|
You own a home, why are you disappointed about this?
Humans are fucking weird, man.
Uhhh because it’s not fair? Humans are kind of obsessed with that concept
The only reason we should we looking into other people’s bowls is to make sure they have enough.
How is this ‘not fair’? You’re so obsessed with perceived loss of personal gain that you lose sight of the greater good.
It’s crab mentality.
It’s good that other people get a subsidy. It’s also disappointing that you don’t. Both can be true.
Nothing is “fair”. Stfu
No need to be rude. You can make your point easily without it.
That’s great and all, but 5 grand won’t even make a dent in the money you’d need to put as a down payment to get a mortgage that you can actually afford to pay.
Build more houses, please. Especially more low and middle income complexes. The government is the only entity that has the ability to do so, because the private sector can’t make money off of low income sales.
This is just paying lip service to the problem, not solving it.
LOWER THE COST OF GROCERIES !!!
FUCK
Wow, 2-4* whole months of payments on a 30 year mortgage, what an incentive! /s
(*Depending on location)
You don’t get it obviously.
This helps people right on the cusp of being able to close on a house. 5k can make the difference in so many cases.
Keep being stupid, stupid.
Great for all 1-2 thousand of them. For the rest of us it means fuck all to take 5K off the top of a deposit on a 500K house, nor does it make it make sense for a landlord special “remodel” from a house flipper to cost as much as much as it does.
Housing as an investment model is bullshit.
This is the best summary I could come up with:
Biden will also call on Congress to provide a one-year credit of up to $10,000 for families who sell their starter homes, so long as their houses are below the median price in their county.
The idea is to free up a part of the market that has been effectively frozen, as thousands of homeowners cling to low mortgages of 2 or 3 percent and avoid buying a new home with a much higher rate.
Meanwhile, some housing experts raise concerns that new credits could inject even more demand into the market while supply is still catching up — possibly pushing prices even higher.
And Biden will unveil a new $20 billion competitive grant fund as part of his budget, expected next week, which would support the construction of affordable multifamily rental units and remove barriers to housing development.
Those include steps taken to reduce closing costs for home buyers, which the White House stresses can add thousands of dollars to a purchase and put it out of reach.
“President Biden is absolutely right to lay out his plans to make housing more affordable,” said Lindsay Owens, executive director of the Groundwork Collaborative, a left-leaning think tank.
The original article contains 978 words, the summary contains 197 words. Saved 80%. I’m a bot and I’m open source!
I will keep my 2.2% thx
Instead of funding the creation of rentals, which will only lock Americans into renting forever, why don’t we fund low cost condos? Literally the same buildings as apartments but with individual ownership.
A tax credit of $5k for a house that is overvalued by $300k-$500k with like 7% baseline mortgage interest?
Fun stuff.
Great. Now Biden’s supporters are gonna act like housing is solved forever.
