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In that case everybody gets a share, but no more speculators who benefit from it. People with low income pay less tax, people with high income pay higher tax. Also tax does not increase the way house prices have been increasing in the past. The government can cut spending if they don't have that much money. The government never stop running. Also, property taxe funds local schools, not all government agencies are affected. When people spend less on housing, they have more money left to spend on other things, more sales tax revenue for the government. House isn't everything for people.
In that case everybody gets a share, but no more speculators who benefit from it. People with low income pay less tax, people with high income pay higher tax. Also tax does not increase the way house prices have been increasing in the past. The government can cut spending if they don't have that much money. The government never stop running. Also, property taxe funds local schools, not all government agencies are affected. When people spend less on housing, they have more money left to spend on other things, more sales tax revenue for the government. House isn't everything for people.
interesting theoryBut that's a political debate, and endless
also interesting ->House isn't everything for people.
Hmmm, What do those property taxes typically pay for? Let's see....
Many services including police, fire and ambulance emergency response, Parks and Recreation programs, street repair and road construction for residential streets and thoroughfares, code enforcement, building permitting and inspection services, special events, crime prevention programs, animal control, snow removal, restaurant inspections, cultural events, libraries, jails, and more.
Homes are a lot of things for a lot of folks who don't own homes.
interesting theoryBut that's a political debate, and endless
also interesting ->House isn't everything for people.
Hmmm, What do those property taxes typically pay for? Let's see....
Many services including police, fire and ambulance emergency response, Parks and Recreation programs, street repair and road construction for residential streets and thoroughfares, code enforcement, building permitting and inspection services, special events, crime prevention programs, animal control, snow removal, restaurant inspections, cultural events, libraries, jails, and more.
Homes are a lot of things for a lot of folks who don't own homes.
Do you mean these services did not exist back when property taxes were low.Property taxes will drop but the government will still get some. The government can cut other unnecessary spending to make up for the residential services, some government is getting too fat these days when property taxes are high. I think it will be the state workers who will suffer when government cuts budget. Also the property tax means a lot to people too, they will be very happy to pay less. On the other hand, if house price and property tax keep rising while wages don't go up as much and may even fall, people stop buying and building like right now, default on mortgage payment, go to foreclosure, you think government benefits from that.
Homes are a lot of things for a lot of people, yes, but the same reason made a lot of people heavily in debt today, and people learn from that lesson and warn their friends and relatives not to easily fall into that trap again. People are more cautious today in buying. When NAR keeps making inaccurate forecasts in the past, people stop believing in it, this is reality. I wonder if Lawrence Yun truly believes what he says himself.
There are many smart investors (speculators) who got out of this mess before the bubble popped, do you think they are going to buy right now at this high level. No, not if prices drop to a very low level, they may buy foreclosures.
The effect of the baby boomers may not come into full play years later, but it is starting up. When they do, they will also be putting their houses on the market for sale and moving to condos or apartment or nursing home. For sellers who plan to hold onto the houses until market gets better, i think you may need to keep this in mind, because things may get even worse before getting better.
Look at these consumer credit numbers:
Consumer Credit change
August: $12.2B
Consensus estimate: $9.0B
previous month: $7.5B
Wonder if people who have too much housing debt can't afford regular living expenses and are charging groceries and other necessities (maybe even paying bills with a credit card), or if they just can't let go of bad habits to overspend.
Here come the bankruptcies. People with a high debt load aren't doing fine. They are just kidding themselves.
I don't own a house now, it is not because i don't have enough money, we would put down 50% + down payment if we want. But we are simply waiting out for prices to fall further. I don't want to be the last fool to catch a falling knife and pay for others' credit card debt.
Last edited by midlander008; 10-17-2007 at 01:30 PM..
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I guess it was a self-fulfilling prophecy.
Doesn't affect whom?
But that's a political debate, and endless
