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It is only going to cause prices to skyrocket,
HunterTits saysIt is only going to cause prices to skyrocket,
That seems obvious. If the government slashes a home price of 1 million down to 600k, then people will bid up the price again far past the original price “to be competitive” with other home buyers. So the 1 million dollar house will be bid up to 1.4 million so they wind up paying that 1 million price anyway, but in this scenario the state owns 40% of the home.
So not good.
A major issue like this should go through ballet measure.
I keep seeing more and more pieces to the new democrat strategy of causing asset inflation, so they can tax it.
This is going to be a monster payday for rich dems they are probably loading up before this goes through.
And then the legacy owners would see their real estate go up in price to new ridiculous levels. They will love that.
If you already own a house and looking to exit this beautiful state of ours - it's perfect. Instant 45% upside!
Until they get their property tax bills
Eric Holder saysIf you already own a house and looking to exit this beautiful state of ours - it's perfect. Instant 45% upside!
Except the capital gains tax rate just went to 45% in Biden's tax proposal, and applies retroactively!
Well 65% of 45% is still shitload of free dough.
Eric Holder saysWell 65% of 45% is still shitload of free dough.
The residential seller (not a hedge fund or portfolio owner) would still need to buy a place to live after paying the capital gain tax, regardless to where they move.
More reasons to leave the state.
This is fucking insane!
It is only going to cause prices to skyrocket, thus forcing almost all would be homeowners to have to participate. Just like double-income couples out bid single income couples and NINJA mortgagees outbid those with more traditional financing.
And once in place, it cannot be unwound without devastating house prices, exactly the same as with Fannie/Freddie guaranteed loans.
Those loans just made housing more expensive, completely negating the benefit of the loan, but now those loans are there, they have to continue to be there or housing will crash and all mortgage lenders will be bankrupt (unless they packaged and sold off their mortgages again, in which case the bond buyers will get screwed).
So where is the state of California going to get the trillions of dollars to buy the 45% of residential homes that are sold?
So where is the state of California going to get the trillions of dollars to buy the 45% of residential homes that are sold?
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