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said David Berenbaum "It is going to narrow the range of loans that lenders are willing to originate to the point that only consumers with the best credit scores -- meaning white and affluent consumers -- are going to get loans."
Wow that's a bit bold - couldn't have said mostly the frugal and affluent - I understand the disparities - but to say only and white in the same context - seems out of touch.
...probably wont come to that, but if it did, what would you do?
Quote:
Originally Posted by GeorgeBailey
You...you said...What'd you say just a minute ago?
...They had to wait and save their money before they even ought to think of a decent home.
Wait! Wait for what?
Until their children grow up and leave them?
Until they're so old and broken-down that they...
Do you know how long it takes a working man to save five thousand dollars?
Just remember this, Mr. Potter, that this rabble you're talking about...
they do most of the working and paying and living and dying in this community.
Well, is it too much to have them work and pay and live and die in a couple of decent rooms and a bath?
Anyway, my father didn't think so. People were human beings to him, but to you, a warped frustrated old man, they're cattle. Well, in my book he died a much richer man than you'll ever be!
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When the mortgage interest deduction gets back to something far closer to it's original intent...
and by that we again have "starter homes" of reasonable size...
built for and sold at prices people can afford...
and most of them actually stay put long enough to pay off that mortgage...
everyone will be better off.
Perhaps if you could ONLY buy a house with cash, there would be political pressure to allow the construction and sale of tiny homes that people could afford to buy with cash. I've been advocating the latter for years.
Perhaps if you could ONLY buy a house with cash, there would be political pressure to allow the construction and sale of tiny homes that people could afford to buy with cash.
Taking price and size and other more subjective aspects out of the equation...
limiting the interest deduction to ONE home purchase might be enough.
Repeatedly trading up into ever more expensive properties? No.
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Back to the Q:
I recently bought a modest home at a modest price...
and all in cash.
Taking price and size and other more subjective aspects out of the equation...
limiting the interest deduction to ONE home purchase might be enough.
Repeatedly trading up into ever more expensive properties? No.
Now that is a brilliant idea and the most commonsense way address the mortgage interest deduction issue.
Grandfather the eligibility of all existing mortgages, but make new mortgages deductible on one (a first purchase) home.
Taking price and size and other more subjective aspects out of the equation...
limiting the interest deduction to ONE home purchase might be enough. Repeatedly trading up into ever more expensive properties? No.
But isn't that the american dream? As you become more and more successful and are ABLE to afford more you spend more and get bigger and better stuff.
I do see what you're saying though. Give the break to the folks starting out when they can afford nada.
The only way we are going to get back to the "smaller and more affordable" housing is when people stop watching HGTV. According to this article(Increase in Housing Quality and its effect on Home Values: 1940-2010 — Visualizing Economics) in 1940 the average house price was $30,600 (actually got that from the census and had been adjusted to 2000 dollars). There were only roughly 34 million households compared to 112 million in 2000; 1000 sq. ft. homes vs 2135 sq. ft.; 3.7 average household size vs. 3.6; and roughly only 55% of the homes had indoor plumbing vs. 99% of homes in 2000.
I just don't see people willingly giving up some of these things to have "affordable housing".
Well yes of course. Under your theory, if mortgages were no longer an option the price of homes would be so cheap it would make sense to buy one. Of course, if things got to that point the I think living situations would be so bad there'd be a mass revolution anyway so it's probably moot.
Those of you talking about tiny affordable housing, there is more of it out there than there has been in very long time. Have you looked lately?
Very little of the tiny is very affordable...
but this discussion is about the not tiny... just modest.
Probably like the house your parents had when first married and starting their family.
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As you become more and more successful and are ABLE to afford more you spend more and get bigger and better stuff.
