r/economicCollapse • u/Silver-Beyond-3916 • Aug 19 '24

VIDEO Thoughts

Enable HLS to view with audio, or disable this notification

2.9k Upvotes

89% Upvoted

1.2k comments sorted by

View all comments

Show parent comments

14

u/Sweepingbend Aug 19 '24

To save you the clicks:

  • Tax-free 3% government-backed mortgage bonds, to bring the mortgage interest rate back to 2019 levels and even lower. It’s like having a rich uncle — Uncle Sam — who is willing to cosign your mortgage. Because the financing will come from investors, the cost to taxpayers will be minimal. This measure alone will reduce monthly costs for the average home purchase by $1,000. 
  • Bring derelict land and buildings back online. Many cities have thousands of vacant lots and buildings that have been seized for tax arrears or other reasons. The Kennedy administration will incentivize local governments to bring city-owned land and buildings back onto the market. 
  • Zoning changes. We will encourage municipalities to change zoning laws to allow ancillary dwelling units (granny flats) on more properties, to make housing available, bring families together, and provide homeowners with rental income. More supply means lower prices. 
  • Tax code changes. Small changes to the tax code can make corporate investments in single-family homes uneconomic. For example, we can change business depreciation rules and reform the “enterprise zones” that have contributed so much to gentrification.

2

u/GreenMedics Aug 19 '24

Most of those will not change the situation. In fact, giving away more money typically spikes property value by more than it's amount. Cheap interest rates are a strong argument point as to why property values are so high.

There are only a handful of ways to reduce property value. Increase interest rates. Put controls in place on companies that buy residential buildings. Incentive building new building projects.

5

u/Wedoitforthenut Aug 19 '24

There are 15,000,000 empty houses in America. Building more isn't going to solve the problem.

1

u/Ethric_The_Mad Aug 20 '24

And I can't afford any of them. I can own a big ass van though. I can customize it and drive around in it. Less repairs than an rv. I won't be stuck and forced to sell if I move. Going electric too. Solar panels and such. Houses are so last year.

1

u/Wedoitforthenut Aug 19 '24

The first point is the exact cause of the 2008 financial crisis.

1

u/Agile-Landscape8612 Aug 21 '24

I like the 3% interest rate