I know this is mostly a board for shilling crypto ponzis but I was hoping we could have a genuine discussion on finance, specifically real estate.
Why does the US government tax incentivize investment in real estate so heavily? It seems so bizarre and backwards to me. Higher and higher real estate prices means more and more US consumer dollars being locked away in illiquid housing equity. Higher prices means bigger mortgage payments, which means greater prices for renters as well, who must spend half their monthly income on rent, money that would likely have otherwise gone to stimulating the economy in some way. Instead, that money goes to a landlord, who is likely going to use it to further invest in real estate, typing up even more money into decaying buildings and driving prices higher. With less incentives to rent, that's less people living near city centers, less people stimulating local bar/restaurant/activity economies, more cars and congestion in and out of cities, causing greater pollution, congestion, and fuel consumption.
Is there something I'm missing here? How does real estate stand to benefit the overall populace and economy outside of the narrow populace of real estate investors?
>How does real estate stand to benefit the overall populace
They don't give a shit about anyone but home-owning Boomers.
Gabriel Martinez
Real estate employees a lot of people, plumbers, carpenters, masons, and so on. Inflating the real estate market create jobs, not a lot of other investments does that.
Blake Perez
Imagine paying $6600 leafbuxs a year in property tax for that shitbox.
That sounds nonsensical. If I own a pizzeria and need repairs on the bathroom or an extension built, I am not paying for that based on the equity I have locked away in my mortgage for the pizzeria itself (that's even to suggest I am not renting it in the first place). Those repairs/renovations are paid for by the business being done inside the building itself.
Logan Flores
>Why does the US government tax incentivize investment in real estate so heavily? They know that most Americans are broke as fuck, so they need foreign money coming in to buy up the homes and keep the bubble going.
Josiah Ramirez
The better the real estate market performs, the more houses are being constructed, and following that the more people are employed. likewise, the better the real estate market perform, the more people are gonna "flip a house" and repair a house in order to raise its market value.
Christian Davis
Oh great a real thread gets no replies but pajeet shilling a shitcoin gets 100 in 10 mins.
Fuck this board.
Nathan Sullivan
Hope all fellow Leafs are going to shill O'Toole HARD. He is an actual conservative and has a very real shot at winning a majority if and when an election is called. Here is his China policy.
Of course foreign ownership of real estate is only one aspect of skyrocketing house prices, but one that can more easily be dealt with than a rapidly depreciating dollar.
Julian Lewis
Sold my dumpy condo, buyers were Chinese. Pretty sure RE is just a way for mainland money to flee the mainland before the collapse.
Evan Gonzalez
This is called money laundering if you haven't figured it out yet.
Nathaniel White
>How does real estate stand to benefit the overall populace and economy outside of the narrow populace of real estate investors? it doesn't really. One normie argument can be that "oh well people always need a place to live, so the government wants to make sure there's always incentive to get people homes" but that doesn't seem right to me.
The reality is that in central bankism where we're raped by inflation and deflation, and that god damn money printer, they don't care about the overall populace. You can see that with the 2008 financial crises when the central banks purposely sold people subprime mortgages and CDO's they knew were shit and would crash, because it made them money. They knew there would be a bailout and millions would lose jobs and homes, but that didn't matter.
A more recent example? Look no further than the stimulus checks and financial relief packages, where people only got maybe 800B out of a 2.2T dollar package, most of the small business money went to large corporations, etc etc...
They don't give a shit about you, me, or anything else besides making money. Use that to your advantage
Caleb Green
Idk but all my high school acquaintances do real estate now and make it look like they make a lot of money on social media.
Jackson Cook
What is happening in Toronto to be that expensive?
Carter Roberts
I think I understand what you're saying, but it still feels self-fulfilling anyway. If the economy is doing well, that should drive growth, both in people needing real estate for personal and business reasons, and thus more construction to meet that demand. As it stands, banks are keeping millions of homes empty to artificially restrict supply and keep prices artificially growing. This has to pop eventually. Even if it somehow never did, is a speculative bubble that provides jobs to an increasingly small amount of blue collar US workers worth locking all other Americans out of home ownership and reasonable rent rates?
Cooper Lopez
>real estate >US consumer dollars being involved even remotely lmao
Jaxon Torres
inflation is only 1.5% a year ;) -jpoow
David Hall
Unless you are homeless or inherited a home and reside in the United States, you are either locking money into a mortgage or pissing it away on rent. I understand a lot of real estate money is foreign investment, and that's certainly a large part of the problem, but it has huge ramifications and ripple effects on the local economies surrounding these housing bubbles.
Ethan Lee
if houseprices went down then the government gets voted out. people feel more confident to spend on other things when their wealth goes up. It's called the wealth effect.
(((Erin))) (((0’toole))) has a Jewish mother from (((London))) and there’s no mention what ethnicity she is. He’s a clear Jew and is pro Israel, Zionist lackey and Rothschild operative. Why are the cons electing another Jew as their leader? Canada is failed state, i want off this cucked ride.
Dylan Smith
Nice diatribe fucko.
Christian Parker
Thanks for sharing
Brody Taylor
You could rent it for $72000 leafbux per year. Or say that you could rent it for $90000 leafbux per year, use that as income to borrow money and borrow enough to pay that property tax in perpetuity. We have turned this scam into an art. Literally too big to fail at this point.
Gabriel Baker
He is going to push for unlimited RRSP tapping without paying taxes, so long as it's spent on your primary residence. This is going to pump the fuck out of the low end of the market. I'll personally be funneling my avoided income and capital gains taxes straight into real estate.
He has my vote.
Hunter Nelson
user it was the same thing in 2008. EVERYONE was doing real estate back then.
Then the market hit a downturn and they all went bankrupt. My cousin's ex-husband lost his real estate office, his $500k home and 2 cars. He went from wannabe real estate mogul to working in a hotel kitchen when the recession hit.
Caleb Ramirez
>pallete cucksheds in söyronto go for more than a million dollars >you can buy a fucking stone castle in beautiful rural france for 800k euros
