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I’m confused by how you got that from what I said. I’m saying that housing should become a bad investment so that people can live in it. If the price of a house doesn’t appreciate year over year, it’s not profitable to leave it empty — either it will be rented or it will be sold; either way someone will be housed.
Good point though, thanks for giving me a chance to clarify.
So if the house cost $x in 1960, it should cost the same in 2023 adjusted for inflation (which can still leave you large paper gains that the IRS will tax you on if it goes over exclusions).
The value of my house is immaterial to me since I need a place to live and since I bought it my run costs are basically stable and less than renting.
Will I be able to resell it in 10/20/30 years? Probably. But it would still be worthwhile compared to rental outflows.
Total structural loss immediately after purchase would have been sad, just like a crash after buying a new car. But insurance exists for that.
The 30 year fixed-rate mortgage is an unnatural financial instrument.
Housing turns money into living. Don't expect a financial return on things you buy to keep you alive
Houses should depreciate in value as they age. Most buyers looking something that fits their _living_ needs rather than their financial plans.
And I can't see how land won't appreciate if you have a growing population, some level of immigration, and some portion of commercial investment in the sector. You can argue against the last item, but good luck getting that over the line at an election. I think we'd have absolute lawlessness first. The frog is being slowly boiled first, unfortunately.
Which is why Land Value Taxes (LVT) are an important piece of the strategy. Heavily or entirely taxing the value of the land but not the buildings allows you to discourage speculation and recoups the value that is generated by the society while not burdening new development.
That said, AFAIK, Japan has been able to foment a market where houses do depreciate, even in Tokyo which has grown considerably. I don't think they have LVTs but the ability to just keep building and their willingness to tear down old (>30 yr) buildings helps a lot.
We've recently added a land tax here in South Australia, but your first property is excluded. The tax was very unpopular with property developers who lobbied aggressively, which could be one sign it's the right direction! It had to factor in ownership of land through shell companies because sometimes developers create an entity per venture.
But I doubt the tax is aggressive enough to really help young aspiring home owners. House prices are still brutal and still growing.
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Texans may postpone paying current and delinquent property taxes on their homes by signing a tax deferral affidavit at the (NAME) County Appraisal District office if they are:
• age 65 or older;
• disabled as defined by law
• qualified disabled veterans, their unmarried surviving spouses, or their unmarried children under age 18, if no surviving spouse; or
• unmarried surviving spouses of U.S. armed service members killed on active duty and their unmarried children under age 18.
Once the affidavit is on file, taxes are deferred — but not cancelled — as long as the owner continues to own and live in the home. Taxes accumulate with 5 percent interest per year. The law extends the tax deferral to the surviving spouse of the person who deferred taxes on the homestead if the surviving spouse was at least 55 years old when the deceased spouse died.
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[0] https://comptroller.texas.gov/taxes/property-tax/docs/deferr...
With cheaper and cheaper housing, more and more people will be able to afford it.