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i always love the ideas people have for fixing things that always involve that idea kicking in after a point that does not effect them or something they don't partake in .
anytime a solution is given by an economist wanna be you know there is nothing that negatively impacts them much whether it is a tax ,a surcharge or a law
Of course that's always the case, just look at the latest tax overhaul proposal. I always thought that corporations were people to republicans, but why are they getting lower rates than people plus why are they legally able to offshore their tax liability when US citizens have to pay no matter where they work.
In terms of NYC real estate changes should be implement to make things more fair for NYC residents.
Of course that's always the case, just look at the latest tax overhaul proposal. I always thought that corporations were people to republicans, but why are they getting lower rates than people plus why are they legally able to offshore their tax liability when US citizens have to pay no matter where they work.
In terms of NYC real estate changes should be implement to make things more fair for NYC residents.
This is not Capitalism.
Quote:
Originally Posted by mathjak107
of course who decides what is fair . what is fair to one is quite unfair to another .
The Federal Reserve Board in DC, as well as the Federal Reserve Bank of New York, have maintained outrageously low interest rates for 15 years. This is defacto printing money, and it's causing record homelessness in coastal cities as the extreme decline in housing prices.
Raise interest rates enough to feel it, and that would be end of high housing prices in NYC. Some people would lose their jobs and not be able to pay their mortgages or rents, but it would shatter the housing market here.
Easy credit has artificially inflated the housing market prices much more than foreigners buying real estate here (many of them are taking advantage of the easy credit as well).
What if I tell you that housing prices in NYC aren't high at all when you adjust for the supply and median household income of those that produce the demand.
The FRB is to reactionary, which is a problem in itself. This has more to do with the spending habits of the Obama Administration, coastal greed, Dodd-Frank and Volcker. They are pumping money in, but made it too difficult to move it around. So it stays put with those reporting up into the FRBNY. They'll eventually have to raise rates under Trump, unless he only goes one term.
again , the fed has little effect on long term mortage rates by using their powers of adjusting short term rates . even when they dabble in buying bonds the dollars they commit in the scheme of things influences little .
remember when the fed ended QE and instead of rates on bonds and mortgages sky rocketing as the talking heads predicted they plunged .
just ask bill gross about his former thinking about the fed influencing long term rates when the worlds investors see things differently . he lost a lot of money betting on that being the case.
You speak with Forked tongue my friend.
First paragraph said Fed dropped short term interest rates to near zero but it would not have much of an effect on long term mortgage rates.
Next you said "Lo and behold mortgage rates didn't rise, they FELL."
So then the Fed lowering short term rates DID lower long term rates...just as expected.
Low crime has more to do with real estate prices in NYC than the Fed. Whatever the Fed does has national impact. NYC's real estate boom is a local issue.
I used to be that NYC was bipolar. People liked NYC for it's business, social, and cultural appeal, but were scared of the high crime rates. Giuliani squashed the latter. Bloomberg kept that going, and made NYC more business and development friendly. So lots of people moved here who previously wouldn't. Also, lots of people who married up and had kids, stayed. That used to very much not be the case. It used to be that parent's with kids moved to the 'burbs,. Now they want to stay, want big apartments for their families, and are willing to pay for them.
The oligarch investment market doesn't hurt either. But the feds have been turning the screw on that, if only slightly. That demand seems to be dropping off.
What if I tell you that housing prices in NYC aren't high at all when you adjust for the supply and median household income of those that produce the demand.
The problem is the supply.
Yes the problem for everyone who wants to live in NYC is lack of supply, no doubt. But that's not what this thread is
This thread is about the "extreme" real estate, as in the $25 million dollar apartments everywhere. Those prices are a direct result of international buyers parking or sheltering their money because they can't discreetly keep it in Swiss bank accounts anymore
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