Kadam303
Jedi Master
more like wishful thinking
Trump Re-elected: The True MAGA Era Begins, Now What?
- Thread starter JGeropoulas
- Start date
A case for keeping the IRS a bit longer. Follow the money, its the key for it all. Say what you will about Bessent, I like the man and the manner in which he presents himself.
Congress is such a joke, they're all paid off and useless.
Congress is such a joke, they're all paid off and useless.
To be fair, based on both tweets alone and what Trump actually said in them, what seems to be suggested is not true IMO.
Trump in the first video says (probably before getting elected), paraphrasing, that his objective is to bring the prices of building a new home/house 30-50 percent down.
In the second video Trump says, paraphrasing, that he wants to drive housing prices up, for quote, „people that own their homes“. Which the second tweeter conveniently left out of his transcript header.
Building a house and wanting to make that 30-50 cheaper is quite another thing than owning your already existing house and wanting to make the price of such a house go up.
At least that is what I got out of those two videos alone and it seems to contradict what is claimed quite a lot.
Cheap housing benefits young couples who want to build stable families. Expansive housing benefits renters and banks.
In other words, if you own a house for a living, whether its price is up or down doesn't matter. But if you own a house to rent and sell, higher prices benefit you. On the other hand, higher prices hurt young people already struggling financially. The pre-election promise was about making houses affordable, the post-election delivery is to make houses expensive. In other words, you'll own nothing and be "happy".
On a personal note, my son and his family are having a terrible time finding a affordable house rental. All over Colorado Blackrock has bought up single family homes and have jacked up the prices for rentals. $2500 mthly is the average price. Trump has said no more of this but the problem is already here. People in Denver are also looking at to high rentals and many are now living in RV's even though they are fully employed.
Yes, the problem has been here for years and Covid was the tipping point. Almost immediately housing prices doubled and so did rent. As best I can tell, as someone who is often seeking lower rent over the years, average rent has steadily increased, and supply has somehow diminished since then. I've easily paid $50,000+ more in rent since Covid than what I would have paid in the equivalent amount of years had rental rates remained the same. I mention this since this is fairly representative of what most younger folks are going through. We're $50,000+ short on purchasing a starter home that costs $100,000+ more. The over effect of this is that even those who are doing fairly well financially are barely making ends meet and have no real path to lower their cost of living. Housing affordability is the #1 political issue for young Americans.
I don't know if it's the case in Colorado but one of the bigger issues in the mountains is that people are putting their properties up for short-term AirBnB rentals instead of making them available to rent long-term. More money to be made. That's created a huge disparity in supply and demand which has led to rising costs for any rentals available since people are desperate.
The same has been happening here in Montana. The interesting Catch-22 is that wealthy landlords (by which I mean that they own many properties to rent or to AirBnB, according to their inclinations) and the rich who move here to get second or third vacation homes need people that are middle or lower class to be present in 'service jobs' in order to get what they want as far as retail, repair, landscaping, etc.
The catch is in the fact that the people in service jobs cannot afford to live in the towns or small cities anymore. Property taxes are crazy here (no sales tax because...tourists) and many home-grown Montanans are in danger of not being able to afford to live in houses they bought decades ago or people who cannot buy homes because of the inflated prices (e.g. I live in a two-bedroom with 1 and a half baths and its property tax value is nearly $600,000 - it's a SMALL home) cannot afford to rent places to live. Another example, a studio apartment in my large town is anywhere from $1100 a month and up. Sixty percent of the people who live here are landlords; like you said, money to be made.
One of the things happening with AirBnB places in Australia, according to an old banking colleague, is that so long as the residence is listed as being available on AirBnB, the landlord still gets tax deductions on the finance interest even if the place is not rented out. So people who have family and friends overseas or interstate who frequently visit are always guaranteed to have a place to stay. AirBnB renters or other people on holidays are discouraged from booking the property because the prices advertised are too high on purpose. As at a few years ago when I was last talking to him, there were over 600k AirBnB's listed in Australia and the average rental booking rates were less than 30 nights per year. He thought the situation would change very fast if the tax perks were changed for short term rentals.
This is part of the problem in Colorado as well. Pagosa Springs, a town not far from me, had a housing construction boom for AirBnB and also big homes for millionaires. Now all these places are empty because no one is coming or buying which are all very expensive, not for the locals. I understand the Airb&b market is crashing. The housing market is going to go through big changes because its all falling apart. There's also an issue of banks giving bogus mortgages on a country wide scale. The fraud is massive. The ski resort towns put a lot of money into the tourist trade and didn't consider the local people who lived there now those people can't afford being there and have moved out but where can they go? Plus tourism has dropped off, so a lot of money counting on a booming tourist trade that's falling flat. You'll own nothing and be happy also comes into the equation with Blackrock.
Trending content
-
Thread 'Coronavirus Pandemic: Apocalypse Now! Or exaggerated scare story?'
- wanderingthomas
Replies: 30K -
-
-
