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Old 04-27-2017, 03:55 PM
Sugarfoot Sugarfoot is offline
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Default Priced out

https://www.youtube.com/watch?v=SBjXUBMkkE8

Watched this youtube video titled Million Dollar Shack. These folks are not homesteading but are experiencing something that I am familiar with and can relate to. Where you have wanted to maybe stay where you grew up but outsiders or market shifts have made it impossible to buy or even maintain what you already own. I think it is a valuable lesson in why we should not be selling US property to non-citizens and why people are sometimes not welcome moving to another part of the country. I feel really bad for this family.
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Old 04-27-2017, 07:18 PM
doc doc is offline
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At least that family was just renting and could move out any time. Worse is what happened in Chicago:

In the 60's, the near north & NW sides that had been home to German & Polish immigrants started to "run down." Those folks moved out to the suburbs and the homes were bought up by poor Puerto Rican immigrants at low prices. Values continued to deteriorate, but at least the owners could afford the mortgage and taxes.

But then starting in the 80s, the young professional suburban brats (yuppies) started buying up run-down homes for a song and restoring them: "gentifrication." With that, all RE values started rising ($40k properties became $600k properties) and that meant RE taxes went up accordingly. Those PR homeowners were now forced out of homes they had owned for 20+ yrs because they couldn't pay the RE taxes and then lost most of the profit on selling to capital gains tax.

And do we even have to mention how we all got screwed by the collapse in 2007? We all lost 25-50% of the RE value of our homes. They gave out mortgages to people who they knew couldn't pay them back. The govt then gave our tax money to the banks to make up the loss, PLUS the banks got the houses to sell and flood the market, forcing prices down.

Why didn't we give the tax money to the homeowners to stay current on the mortgages? The banks would have got their money, the homeowners wouldn't have forced out and the market wouldn't have been flooded.

But I'm not a brilliant economist or wise old politician, so what do I know?
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Old 04-27-2017, 09:57 PM
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Jjr Male Jjr is offline
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Quote:
Originally Posted by doc View Post
Why didn't we give the tax money to the homeowners to stay current on the mortgages? The banks would have got their money, the homeowners wouldn't have forced out and the market wouldn't have been flooded.

But I'm not a brilliant economist or wise old politician, so what do I know?
First off, that might have made too much sense as one colleague from the past was fond of saying.

Then secondly, it likely would have cut off too many siphonage pipelines designed to distribute that loot far beyond the original intended recipient.
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