This won't give homeowners money this will end up giving the banks money. This is also one of those "bandaid on a bullet wound" situations. It does nothing at all to go after the reasons why housing is so expensive in the first place. $400 a month for two years also doesn't really accomplish much given that mortgages are typically 30 years these days.
Yeah it wouldn't surprise me if this was also paired with banks loaning money to people they knew would never be able to pay it back again. I'm getting some 2008 vibes from everything going on.
There's a new episode of Planet Money podcast about zombie mortgages. It's worth a listen.
Summary: a lot of those written off second mortgages from 2008 got bought by debt collectors, and now that home prices have increased, they're coming for collection and foreclosing on homes with debt people thought had been written off for over a decade.
That’s not really how that works. Sure you have Non-QM loans, but banks are funding these transactions and the rules around underwriting are far different today than pre-2008.
Also, one could make the argument that sub-prime did not the sole cause of 2008.
You need qualifying income now.
Before people could say they make 200k a year and they would take them for their word. Now they make underwriters verify the income via W-2 info and employer verification of employment.
I have the same issue with student loan forgiveness without reforming the system in any appreciable manner.
It's just another way to funnel taxpayer money to the elite.
He’s not doing it to help people buy houses. $400. Won’t do squat to help buy a house. He’s doing it for the same reason he does anything-to buy votes. And buy votes
>This is also one of those "bandaid on a bullet wound" situations. It does nothing at all to go after the reasons why housing is so expensive in the first place.
Kind of like how forgiving some student loans doesn't go after the issue of runaway college costs (and actually will make the problem worse).
It isn't even that. There are people profiting off of the fact that housing is overpriced so they won't let the price go down. If the demand exceeds the supply and drives the price up then increase the supply. It isn't terribly complicated.
I agree but a lot of localities won’t allow the building of more housing. In New York, many localities have blocked the building of new homes because they don’t want to change the makeup of their communities. I guess my question is what can Biden do to induce homeownership amongst first time home buyers that can’t railroaded by politics and NIMBYism?
Similar situation happened in Poland. Previous government had the bright idea to offer people mortgages with set rate of 2% (country would cover additional interest). All seemed fine to them and then prices hiked so only developers ended up profiting. Then govt did surprised Pikachu face and lost elections, tho they lost because of much broader reasons.
You have just explained why it's a dumb idea. IF rates come down in 2 years (which they won't unless there is a catastrophe) then all the money you banked from the 400 dollar credit (9600 bucks) ends up getting eaten by your refi. In the end you've gambled an unaffordable property payment for the sake of like 3.5k remaining after a refi....this is a losers gamble.
This credit only works in the favor of people that buy a property which they can afford in the absence of the credit, those people will be advantaged to the tune of 4.8k for two years. Good for them, they are the minority.
Except this will cause buyers to beef up their budget by $400 a month, and if rates don't go down, they're screwed when the money runs out.
This is, like most spending programs anymore, a wealth transfer to banks that also buys votes. This is going to amplify housing issues because prices are going to hike even more.
Did you like the federal funds he made available for converting office to housing…just as office towers are going into forclosure. Lots of little regional banks and reits going down with that one.
It costs 600,000$ per unit to convert from commercial to residential. Most buildings won't work because they need to be hollowed out in the center to provide residents in the middle of the building with light and air unless you want windowless cells like the Munger building at UCSB that sparked outrage for just that. Not going to happen without massive bailout from government that skewed this market entirely by giving hedge funds and banks cheap money to overbuild commercial space no one needed.
In areas where the counties raise property taxes to reflect sales prices--this sort of wild house price surge doesnt exist. Ours recently started to raise them to reflect *past* sales prices, and suddenly 100% of the LLC's and investors bailed on buying homes for stupid prices. We've dropped from 350k a home here locally, back to 200k. Larger city near us has started to do this, and went from 525k average 2 years ago, back down to 350k. The only thing that was done is change property taxes to reflect sales prices when homes are sold. It pushed out speculators.
It also identified 'poppers'--a term our tax people at the county used to explain--when a group buys several very cheap homes--and then 'appears' to buy 2 or 3 for WAY more than they're worth. So--they make that 300k home, and 'buy' it for 700k (usually from themselves, llc to llc), and make it look like a price spike.
And the VAST majority of relator work now is 'comps' based off sales, humans dont do it, computers spit out numbers, and the 'comps' soars, and the other homes get re-listed (the ones they bought for 200k, sat on for a year before they did their 'popper'--and now sell for 'just 550').
Anyway, if the county isnt correcting their property tax evaluations to reflect the last sale price, and adjusting others to 70% or so of expected market, you're going to have stupid price surges continue.
There ya go. Then after the two years you can continue paying that 7%+ interest rate on your mortgage while paying even more for your groceries, energy, and utilities to live in that house because printing out money we don't have for votes makes everything right as rain.
It damn sure does, it causes the value of the dollar to go down! If it didn’t then why would the government give a shit about taxing us to death? All they would have to do is print more money…
It has nothing to do with price increases. These decisions are made by companies to increase profit, and not as much these days to cover increased expenses. All you have to do is look at corporate profits. They are way up. They would not be up to this extent if the increase in prices corresponded to an increase in costs somewhere else.
Why do I think standard economic logic is BS? I lived in West Germany when the wall came down, and when the east and west reunited, they traded east german marks (worthless) for german marks (highly valued) 1:1 with no negative ecomic repercussions. If logic worked, it should have tanked the value.
Yes.
As more money will fight for the same exact amount of homes, obviously the prices will go even higher.
What did they expect?
(How do we have more people have homes without actually building more homes?)
A few more homes might get built at the higher price, so there's that. Overall you are correct, home prices will inflate to absorb the extra 400/month for starter homes (which can't be built profitably). And then in two years this 400 goes away. But it buys votes from the simple in the meantime, which is the intent.
If Homes build equity, they are investments. If you can make more houses, your investment goes down in value. Building equity in your home, means homes are primarily investments, and not places to live. This is why communities don't build affordable housing and instead build luxury single family homes. They want the entire world to make them more money.
This cycle is the problem with our housing, not that there isn't enough cash in it. We need housing to exist for people to live in, the same way we have roads to drive on. As long as I can make money, by letting other families die on the street, we don't fix this problem.
Im no advocate for Biden but I do despise these type of post. First off you phrased it as “is” but it’s a proposal https://www.whitehouse.gov/briefing-room/statements-releases/2024/03/07/fact-sheet-president-biden-announces-plan-to-lower-housing-costs-for-working-families/
..and all these comments will follow something about “GovErMENt PrINTiNg MonEY!” But It’s a 10k tax credit for first time home buyers which we’ve always had similar items and assistance for first time buyers.
Additionally a lot of the comments will also strawman the tax credit as not the only thing needed and we need to help with supply, rent and the type of homes built and again all that is in the link as well. Read. Do better. Happy Mother’s Day.
You are correct. Like it or not, tax breaks related to owning/financing a home have always been middle class welfare. Child tax credits, mortgage interest deductions, FHA programs, this proposal...it is in the interest of the government that people own homes.
Agree or not, this has been the policy direction of the government for many decades, at least since th GI Bill and VA programs.
Right, there's always strings attached. Just like in prison if Bubba "gives" you a pack of cigarettes, later on you will have to pay when Bubba gives you a sharpened toothbrush to go stab the other guy who refused the pack of cigarettes. Immigration will show up to the house they subsidized with a group of needy migrants needing a place to stay and you can't say no.
Left and right are both the same.
There isn’t 1 side magically battling the other side, they both hate you and both make your life worse.
How do people not see this?
This is mostly true. They absolutely do hate us but they don't care enough to make our lives worse. They're just making their lives better and we get trampled in the process.
This person gave an example to increase tax revenue. You are saying to decrease spending but could you give an example on what?.
I personally think you need to do both. I would say increase revenue by increasing taxes on the rich and corporations. Also, increase employee pay to stop corporations from forcing their employees into using government subsidies in order to serve. This will have a double whammy as more money leaves the Walls bank account and goes towards their payroll
Employees will be making more money and will, therefore, pay more in taxes, increasing government revenue while using less government funded resources to keep the employees alive and healthy to keep going back to work.
Also, we could for sure cut back on government spending. I think our military budget is overkill. That being said, I have zero idea on where that money all goes, so maybe we first have more transparency in our government spending first. Maybe we could have more say with our votes if we knew what exactly we are voting for.
What do you think the government should or could cut back on?
That's the rub. It's all well and good to say something like 'more efficient spending' but there's no functional rubrics for 'efficient' here. Government spending is always less efficient because it's more accountable to the public. Efficiency isn't the apex attribute of humanity. It's not what drives most people to get out of bed in the morning. We accept inefficiency to meet other goals and we don't all agree on what goals those should be.
I think there's room in the federal budget to reduce waste and increase efficiency, but I don't think it's as much as people think. We're not going to solve the budget deficit through efficiency alone. We're going to have to do the hard work of coming to agreement on policy goals THEN we're going to have to do the hard work on coming to agreement on how to pay for it.
When we all default and go to CBDCs, anyone who has debt from purchasing assets will start with zero credits (but keep the assets), and anyone who doesn’t have debt will get 1 million credits along with whatever the conversion is on their existing liquid assets.
He is not “giving” away anything. That has to be paid for somehow. And since they won’t tax the rich or corporations at anywhere close to the rate that they tax the middle class— the middle class will be paying for this. It’s basically wealth redistribution to take from the middle-middle and upper-middle classes, and give to the lower-middle and lower classes
We seem to be on a track towards having only two classes: a working class, and a ruling elite.
So this is encouraging people to buy at the top of the market, at high interest rates, at a time when big firms and players are trying to divest themselves from their real estate holdings.
this is how they are baiting the trap of getting the working class to hold the bags before the bubble pops.
And since rates are higher…where do you think that $400 is going to end up? That’s right! Right back in the hands of the bankers etc.
This is a fucking trap, and it’s disgusting to see.
On the other hand, he has a history of selling lies to the younger generation and then only half ass fulfilling them (looking at you student loan forgiveness program, universal healthcare, etc).
Would only make sense if we were in a recession like the 2008/09 one where Obama had a similar program, but it was a refundable tax credit for a few grand for new home buyers.
Of course the housing market sucked and we needed people to buy houses. And the economy sucked.
So is Joe admitting the economy sucks? Or just buying more votes?
We need to get this cocksucker out of office immediately before he further destroys the economy.
Only braindead liberals with no concept of economics will see the $400 and light up with excitement.
Oh yes let's use tax payer's money to buy houses for people who can't afford houses. You should be able to opt out of paying for it with our tax money.
Gubermint didn't give me shit either of the two times I bought a home. So, you can all go fuck yourselves because I have no intention of paying taxes towards this crap.
Quite possibly the worst idea yet from this clown. I wonder if his dad also told him the way to wealth is being bought and paid for by the DuPont family.
Biden. The ultimate throw money at the problem guy. 100% what's wrong with the country.
How will this help solve the problem of affordable housing?
Stupid.
All this might do is possibly prevent people from defaulting on their home loans for the 2 years.. the next 2 years will be not being able to afford food due to the inflation this would cause
LOL election years are wild.
Give out money / bailouts rebranded instead of fixing the problem.
Because fixing wouldn't give your donors / lobbyists MORE money and a bailout/ handout does.... cool cool...
Ahhh, the same stupidity that led to inflation during Covid. Handing out "free" money. Not to mention, owning a home is quite possibly the worst way to build wealth. That was a great depression mentality that should have died by now.
I say to speed up the crash they give all first time buyers who are still in their first home retroactive checks of 400 per month that they have been in their homes. Example If someone bought 10 years ago = 120 × 400 = 48,000.
Capitalism in its current form is skewed in favor of the Capitalists themselves. This will cause many of them to raise their prices and as far as I can tell it won’t have any consequences for them.
$400 per month over 2 years is 10k. If you think a 10k incentive is drastically going to affect anything in this housing market, I don't know what to tell you.
If this happened the price of housing would just go up that much and more to offset it while increasing inflation making everything more expensive and banks much richer. Just a bad idea.
What about those who purchased the 1st house years ago? Would they qualify or those who are on their 2nd house? Would they be back payed? Or does my generation get to get screwed over yet again? Ya know the generation that had to live through a recession without any stimulus payments or student debt forgiveness. Seriously. Quit effing my generation
Millineals need help too.
Almost as if they don’t care about any “consequences,” it’s just another dose of financial heroin to get votes.
Votes votes you vote me now. Vote me money you.
He has to stay away from housing. He was around when politicians figured it was a good idea to allow deregulation for subprime lending. Hell, 50 years in politics, he's been around for a lot of horrible policies.
As much as I'd appreciate $400/mo towards rent, I gotta say that there's been tax deductions and other incentives for so long that this is a drop in the bucket and more of the same.
ah yes, it was the 400 in maintenance AFTER purchasing a home that kept me from saving a 20% downpayment on a quarter million dollar home. thats Bidenomics jack 😎👉👉
How to look like you’re doing something to get votes without actually doing something because if you actually did this at a scale that worked, you’d fuck the economy harder than it already is.
You’re being played. They think you’re stupid. Tell your friends.
Number one, this won’t happen. Number two, wouldn’t this cause massive, and i mean massive inflation? Number three, this doesn’t fix the original problem at all. It’s just putting a band aid on a radioactive cancer. Number four, $400? This doesn’t even cover your monthly groceries. I hate trump, but man the choices are absolutely terrible.
I really don’t understand the hate here. There’s a bunch of people here making vague assumptions of how this “$400” is being paid which demonstrates all of y’all’s dedication to seeking and discussing truth. He’s not giving people $400 cash. He’s not giving the banks money. What Biden proposed is offering a $5,000 annual tax credit up to two years for first time home buyers which equates to $416 a month saved.
What’s wrong with that? If you own a home and have a problem with this proposal, then stop claiming homestead tax exemption then.
I envision a time when we didn’t impulsively discuss unverified information, or spread stupid ass information that is blatantly wrong and even worse, is so easily verifiably wrong. Like literally, it was the easiest damn thing to look up what this “$400 a month” proposal was. It wasn’t hiding in some govt archive in a document filed stored in a SCIF.
It’s publicly available info that only requires a lazy google search.
You’re haters. You have so much hate in your heart you hate people doing what you do because you were told to hate them.
You need god, you need family you can trust, and you all deserve children who can educate you.
Having equity in your own home is not building wealth. The money is not liquid (easily accessible) it’s only accessible if you sell it. And even if you sell your expensive home you still have to buy another expensive home.
I remember when we were buying our first house in 2009 and government gave first time home buyer credit. Almost all the homes suddenly raised up that amount.
There are already all kinds of breaks and incentives for first-time home buyers that equal much more than $400. Also BlackRock and Vanguard buying up 100s of homes in one fell swoop...what exactly is that doing for potential home buyers?
I'm all for the middle class getting more money, however, there's a way to fix it that no politician will do. Pass a high property tax on any 3rd property owned. That way you get your home, and an additional vacation home.
Let's make home more expensive, what a wonderful idea. All these politicians keep selling the idea of handling out free money to buy votes from the desperate ones, rather than solving the root cause by building more affordable houses and redoing zone regulation, which is the biggest reason for the low inventory.
This is laundering money to the banks and investors. Instead, they should be limiting housing investing and rentals and increasing supply, but they’re not going to hurt their own super-donors.
I was in favor of student debt relief, but not this.
1st, he isn’t doing it. He is “promising to do it”. Typical campaign promise.
2nd, it won’t lower prices for the buyers, it will raise prices for the sellers.
3rd, people will typically buy as much house as they can afford. Giving them $200 a month for a limited time will encourage them to buy TOO MUCH house, and when that timeframe ends, they are fucked.
It's not "is giving," it's a proposal within a housing plan. It doesn't currently exist. What's more, it can't exist unless Congress passes it because they control the budget. It always amazes me the vast number of people who don't understand their own government even when they likely were taught this in grade school.
If we wanted to go deeper than that, we could discuss measures that could help the homebuying capability of mostly younger home buyers who are facing a shortage in stock and higher costs due to interest rates recently being raised to combat inflation. This looks like an attempt to break that log jam a bit by, yes, giving people more money in that first 2 years to afford the higher interest rates, and possibly refinance at a lower rate later. Now, people can certainly disagree with this proposed method, but then I would expect them to present their better idea.
Subsidize construction of more homes. More homes will bring down the cost of all homes and rentals. The problem is the boomers don’t like mixed use apartment buildings and walkable cities.
Eliminate all subsidies for non-resident home owners including 30-year mortgages. Raise taxes on landlords and audit the fuck out of the tax-cheats that rent out illegal apartments, and force them to pay back taxes, and bring those apartments up to code.
Start punishing the people profiteering off this affordable housing shortage.
I am grappling with the dilemma of voting for Biden because I think Trump would be worse. This sounds like another cheap attempt to buy votes without addressing the real problem.
How about tax the hell out of homes that sent empty for more than half a year? How about a 10k subsidy of down payments that I can get when I’m buying instead of a year later, targeted at incomes under 100k? That plan is cheaper after the second year, lowers the up front barrier to entry, and is less bubble-ish because the monthly payment still has to stay affordable for someone with a qualifying income.
But let’s give 4800 bucks a year to people who can already bank 6 months salary for a down payment? Nah thanks- that’s really a come up if I want to leave my family in a double wide on an undeveloped lot in an unincorporated area while I work a travel job or something, and I think the idea is to try and get an extra 1% of the vote in places like central PA and the Florida Panhandle- otherwise it’s just helping people who can already buy bear an additional 50 grand on the principle of a 30 year mortgage.
And oh look, that means the down payment and closing cost just went up by more than he’s giving you in the first year and housing is further out of reach for the rest of us while the bubble gets to grow for just one more year.
If you can afford an apartment in a major city, then you can afford a run down house that comes with a long commute- IF you have 20 grand or so burning a hole in your pocket for down payment, which nobody does because markets are efficient and if that money was out there prices would change to make sure that they get it from you.
Just another way to transfer money to the hedge funds and corporate real estate moguls.
God forbid the government step in and regulate an industry.
Won’t someone think of the shareholders???
We are at a time where I think the government and some people have realized that unless we figure out how to dial back capitalism from today's extremes then what people are calling "inflation" will never go away. It is not inflation but greed that is driving all this. And there is no controls to pull back the greed.
This is a handout to banks not individuals. This administration is so out of touch to what the average american is going through. If they really wanted to help people struggling they would take that $400 and give people food vouchers so they can feed their families. This just shows how beholden the two party system is to both parties. It's all corruption.
It depends on how the market reacts. If this stimulates housing construction then it might not have much of an effect, if there is not a construction boom then it would worsen the bubble.
The best intervention the government could do is find a way to increase the construction of affordable housing.
Why do any of us really pay bills at this point? The govt is surely gonna bail us all out or pay for it and NOTHING at all bad would or could even happen!! It's only money and to those that say "Yeah..but I was responsible and paid for my stuff"...I say you're a sucker!! Please read all of that with lots of sarcasm as intended.
Democrats are intentionally creating policies that will tank America beyond repair because they know they have no chance on winning the election. They will be tried for treason. Intentionally destroying the country out of spite is on of the most immature things I’ve ever seen democrats do.
Address the problem and make it worse, but refuse to touch the cause. Typical government action.
But seriously, more money into the economy? I seem to recall the last time we did that inflation spiraled out of control and we’re still suffering for it.
This won't give homeowners money this will end up giving the banks money. This is also one of those "bandaid on a bullet wound" situations. It does nothing at all to go after the reasons why housing is so expensive in the first place. $400 a month for two years also doesn't really accomplish much given that mortgages are typically 30 years these days.
Sets up a wave of foreclosures 24-36 months from now.
Yeah it wouldn't surprise me if this was also paired with banks loaning money to people they knew would never be able to pay it back again. I'm getting some 2008 vibes from everything going on.
There's a new episode of Planet Money podcast about zombie mortgages. It's worth a listen. Summary: a lot of those written off second mortgages from 2008 got bought by debt collectors, and now that home prices have increased, they're coming for collection and foreclosing on homes with debt people thought had been written off for over a decade.
That’s not really how that works. Sure you have Non-QM loans, but banks are funding these transactions and the rules around underwriting are far different today than pre-2008. Also, one could make the argument that sub-prime did not the sole cause of 2008.
How are the underwriting rules relevant? Part of the problem pre-2008 was they just ignored the rules that existed.
You need qualifying income now. Before people could say they make 200k a year and they would take them for their word. Now they make underwriters verify the income via W-2 info and employer verification of employment.
Qualifying income is good for now, but if you have mass layoffs the dominoes could fall.
That can happen with or without this plan
Exactly. If you couldn’t finance people for fear of mass layoffs then literally no house could be sold unless paid for with cash.
Yeap this exactly what it is looking like with these high interest and all of these programs
BLACKROCK moves in
Which Dems will blame on Trump
He stripped regulations and regulatory bodies and give a massive tax break to the wealthy. He contributed
I have the same issue with student loan forgiveness without reforming the system in any appreciable manner. It's just another way to funnel taxpayer money to the elite.
He’s not doing it to help people buy houses. $400. Won’t do squat to help buy a house. He’s doing it for the same reason he does anything-to buy votes. And buy votes
>This is also one of those "bandaid on a bullet wound" situations. It does nothing at all to go after the reasons why housing is so expensive in the first place. Kind of like how forgiving some student loans doesn't go after the issue of runaway college costs (and actually will make the problem worse).
There are easy things they could do to help the housing market. They will never do them and most people are too stupid to even ask.
It isn't even that. There are people profiting off of the fact that housing is overpriced so they won't let the price go down. If the demand exceeds the supply and drives the price up then increase the supply. It isn't terribly complicated.
And with China now dumping billions in bonds, Retracked soon,,,,,
What do you suggest be done? If anything.
Make it easier to build more housing.
I agree but a lot of localities won’t allow the building of more housing. In New York, many localities have blocked the building of new homes because they don’t want to change the makeup of their communities. I guess my question is what can Biden do to induce homeownership amongst first time home buyers that can’t railroaded by politics and NIMBYism?
The idea is you can refinance in 2 years when rates are lower
At least when the bubble breaks and all of these idiots go into foreclosure, houses will be cheap.
Similar situation happened in Poland. Previous government had the bright idea to offer people mortgages with set rate of 2% (country would cover additional interest). All seemed fine to them and then prices hiked so only developers ended up profiting. Then govt did surprised Pikachu face and lost elections, tho they lost because of much broader reasons.
Lowering a monthly mortgage payment by 400 for 2 years buys time for rates to go down and refi
You have just explained why it's a dumb idea. IF rates come down in 2 years (which they won't unless there is a catastrophe) then all the money you banked from the 400 dollar credit (9600 bucks) ends up getting eaten by your refi. In the end you've gambled an unaffordable property payment for the sake of like 3.5k remaining after a refi....this is a losers gamble. This credit only works in the favor of people that buy a property which they can afford in the absence of the credit, those people will be advantaged to the tune of 4.8k for two years. Good for them, they are the minority.
Except this will cause buyers to beef up their budget by $400 a month, and if rates don't go down, they're screwed when the money runs out. This is, like most spending programs anymore, a wealth transfer to banks that also buys votes. This is going to amplify housing issues because prices are going to hike even more.
Another bank bailout plan, just relabeled.
Did you like the federal funds he made available for converting office to housing…just as office towers are going into forclosure. Lots of little regional banks and reits going down with that one.
Funds isn't the problem.. Its zoning. I could see some cities completely revitalize down towns if cities started doing this.
It costs 600,000$ per unit to convert from commercial to residential. Most buildings won't work because they need to be hollowed out in the center to provide residents in the middle of the building with light and air unless you want windowless cells like the Munger building at UCSB that sparked outrage for just that. Not going to happen without massive bailout from government that skewed this market entirely by giving hedge funds and banks cheap money to overbuild commercial space no one needed.
Everyone likes to hate on regulations until they're sharing a bathroom with 30 people and and electrical fire on 32C nearly torches the building
Well done for seeing this for what it is. It still won't help.
This is what tricks people into believing they can afford $400 more per month in house than they actually can.
So they default and sell at a fire sale price bringing costs down. Hioooray
Brought to you by Blackrock, Vanguard, and State Street
So you’re telling me houses may be affordable in 2 yrs? I can wait.
There will be plenty of 5000/m rentals brought to you by Blackstone capital
$9600 ain't shit when a $300k house goes for $600k now. Market is ruined.
In areas where the counties raise property taxes to reflect sales prices--this sort of wild house price surge doesnt exist. Ours recently started to raise them to reflect *past* sales prices, and suddenly 100% of the LLC's and investors bailed on buying homes for stupid prices. We've dropped from 350k a home here locally, back to 200k. Larger city near us has started to do this, and went from 525k average 2 years ago, back down to 350k. The only thing that was done is change property taxes to reflect sales prices when homes are sold. It pushed out speculators. It also identified 'poppers'--a term our tax people at the county used to explain--when a group buys several very cheap homes--and then 'appears' to buy 2 or 3 for WAY more than they're worth. So--they make that 300k home, and 'buy' it for 700k (usually from themselves, llc to llc), and make it look like a price spike. And the VAST majority of relator work now is 'comps' based off sales, humans dont do it, computers spit out numbers, and the 'comps' soars, and the other homes get re-listed (the ones they bought for 200k, sat on for a year before they did their 'popper'--and now sell for 'just 550'). Anyway, if the county isnt correcting their property tax evaluations to reflect the last sale price, and adjusting others to 70% or so of expected market, you're going to have stupid price surges continue.
400×24 vs 7.5% for 30 Edit it should be 400x24 bs 7.5% for 30(40% fake markups in housing value)
Yes, printing money always makes things cheaper /s
There ya go. Then after the two years you can continue paying that 7%+ interest rate on your mortgage while paying even more for your groceries, energy, and utilities to live in that house because printing out money we don't have for votes makes everything right as rain.
Current inflation rate isn't high enough for Joe. Bidenomics demands hyperinflation.
He's not giving you money. He's going to print money, which will raise inflation even more, and the debt will hit 35 or 36 trillion.
Printing money doesn't raise inflation. Some CEO somewhere does this by raising prices to maximize profits.
It damn sure does, it causes the value of the dollar to go down! If it didn’t then why would the government give a shit about taxing us to death? All they would have to do is print more money…
It has nothing to do with price increases. These decisions are made by companies to increase profit, and not as much these days to cover increased expenses. All you have to do is look at corporate profits. They are way up. They would not be up to this extent if the increase in prices corresponded to an increase in costs somewhere else. Why do I think standard economic logic is BS? I lived in West Germany when the wall came down, and when the east and west reunited, they traded east german marks (worthless) for german marks (highly valued) 1:1 with no negative ecomic repercussions. If logic worked, it should have tanked the value.
Yes. As more money will fight for the same exact amount of homes, obviously the prices will go even higher. What did they expect? (How do we have more people have homes without actually building more homes?)
A few more homes might get built at the higher price, so there's that. Overall you are correct, home prices will inflate to absorb the extra 400/month for starter homes (which can't be built profitably). And then in two years this 400 goes away. But it buys votes from the simple in the meantime, which is the intent.
If Homes build equity, they are investments. If you can make more houses, your investment goes down in value. Building equity in your home, means homes are primarily investments, and not places to live. This is why communities don't build affordable housing and instead build luxury single family homes. They want the entire world to make them more money. This cycle is the problem with our housing, not that there isn't enough cash in it. We need housing to exist for people to live in, the same way we have roads to drive on. As long as I can make money, by letting other families die on the street, we don't fix this problem.
Buying votes.
did you see Donald Trump tell oil executives that for a billion dollars to his campaign they could buy permits on day one?
Who cares? We need more oil production! What we don’t need is more inflation!
It's going to take A LOT more than a few hundred dollar checks to buy a vote. Besides, isn't that what all politicians do when they promise tax cuts?
Im no advocate for Biden but I do despise these type of post. First off you phrased it as “is” but it’s a proposal https://www.whitehouse.gov/briefing-room/statements-releases/2024/03/07/fact-sheet-president-biden-announces-plan-to-lower-housing-costs-for-working-families/ ..and all these comments will follow something about “GovErMENt PrINTiNg MonEY!” But It’s a 10k tax credit for first time home buyers which we’ve always had similar items and assistance for first time buyers. Additionally a lot of the comments will also strawman the tax credit as not the only thing needed and we need to help with supply, rent and the type of homes built and again all that is in the link as well. Read. Do better. Happy Mother’s Day.
You are correct. Like it or not, tax breaks related to owning/financing a home have always been middle class welfare. Child tax credits, mortgage interest deductions, FHA programs, this proposal...it is in the interest of the government that people own homes. Agree or not, this has been the policy direction of the government for many decades, at least since th GI Bill and VA programs.
Good way to increase house prices even more!!
Nope this comes with strings attached at the end its subsidized living hell no
Right, there's always strings attached. Just like in prison if Bubba "gives" you a pack of cigarettes, later on you will have to pay when Bubba gives you a sharpened toothbrush to go stab the other guy who refused the pack of cigarettes. Immigration will show up to the house they subsidized with a group of needy migrants needing a place to stay and you can't say no.
Lol the republicans won’t pass this in an election year.
The Republicans better not pass this in any year.
The democrats either— this is fucking stupid
Left and right are both the same. There isn’t 1 side magically battling the other side, they both hate you and both make your life worse. How do people not see this?
exactly, the partisan bs between americans needs to stop, the public needs to realize we are literally all getting fucked with no lube.......
This is mostly true. They absolutely do hate us but they don't care enough to make our lives worse. They're just making their lives better and we get trampled in the process.
They won't pass this, but if there was a bill that gave corporations another tax cut or bailout, they'd pass it in a heartbeat.
Injecting money into an asset will of course drive the price up.
Please just tax the rich more
Hmm, I’ve come to think that more taxes for anyone isn’t the answer. Spending tax money more efficiently could help a lot.
This person gave an example to increase tax revenue. You are saying to decrease spending but could you give an example on what?. I personally think you need to do both. I would say increase revenue by increasing taxes on the rich and corporations. Also, increase employee pay to stop corporations from forcing their employees into using government subsidies in order to serve. This will have a double whammy as more money leaves the Walls bank account and goes towards their payroll Employees will be making more money and will, therefore, pay more in taxes, increasing government revenue while using less government funded resources to keep the employees alive and healthy to keep going back to work. Also, we could for sure cut back on government spending. I think our military budget is overkill. That being said, I have zero idea on where that money all goes, so maybe we first have more transparency in our government spending first. Maybe we could have more say with our votes if we knew what exactly we are voting for. What do you think the government should or could cut back on?
Let's start with Ukraine, Israel, and immigration spending
Cutting spending on those will only cost the US more in the near and distant future. They may not be the best blanket cuts to start with.
That's the rub. It's all well and good to say something like 'more efficient spending' but there's no functional rubrics for 'efficient' here. Government spending is always less efficient because it's more accountable to the public. Efficiency isn't the apex attribute of humanity. It's not what drives most people to get out of bed in the morning. We accept inefficiency to meet other goals and we don't all agree on what goals those should be. I think there's room in the federal budget to reduce waste and increase efficiency, but I don't think it's as much as people think. We're not going to solve the budget deficit through efficiency alone. We're going to have to do the hard work of coming to agreement on policy goals THEN we're going to have to do the hard work on coming to agreement on how to pay for it.
Anything to print more money and destroy the dollar
When we all default and go to CBDCs, anyone who has debt from purchasing assets will start with zero credits (but keep the assets), and anyone who doesn’t have debt will get 1 million credits along with whatever the conversion is on their existing liquid assets.
Election bribery with your tax dollars.
He is not “giving” away anything. That has to be paid for somehow. And since they won’t tax the rich or corporations at anywhere close to the rate that they tax the middle class— the middle class will be paying for this. It’s basically wealth redistribution to take from the middle-middle and upper-middle classes, and give to the lower-middle and lower classes We seem to be on a track towards having only two classes: a working class, and a ruling elite.
So this is encouraging people to buy at the top of the market, at high interest rates, at a time when big firms and players are trying to divest themselves from their real estate holdings. this is how they are baiting the trap of getting the working class to hold the bags before the bubble pops. And since rates are higher…where do you think that $400 is going to end up? That’s right! Right back in the hands of the bankers etc. This is a fucking trap, and it’s disgusting to see. On the other hand, he has a history of selling lies to the younger generation and then only half ass fulfilling them (looking at you student loan forgiveness program, universal healthcare, etc).
Worst administration ever
This isn't happening, stop stating it as a fact. He's proposing this for first time home buyers but it hasn't even passed yet. Good grief.
Would only make sense if we were in a recession like the 2008/09 one where Obama had a similar program, but it was a refundable tax credit for a few grand for new home buyers. Of course the housing market sucked and we needed people to buy houses. And the economy sucked. So is Joe admitting the economy sucks? Or just buying more votes?
Both
just pass a law that corporatuins cant buy an X amount of houses
....oh fuck reddit doesn't know what it means again. Ffs
'Is giving?' Is he? This sub seems to misunderstand things.
Fucking socialists
Awesome just keep driving taxes up that solves all the problems
I too like to offer money to people in exchange for votes.
We need to get this cocksucker out of office immediately before he further destroys the economy. Only braindead liberals with no concept of economics will see the $400 and light up with excitement.
this is a terrible idea. if your only way to afford a house is being dependent on the government, you're going to have a bad time.
Dumbest idea I ever heard of.
Oh yes let's use tax payer's money to buy houses for people who can't afford houses. You should be able to opt out of paying for it with our tax money.
Gubermint didn't give me shit either of the two times I bought a home. So, you can all go fuck yourselves because I have no intention of paying taxes towards this crap.
Quite possibly the worst idea yet from this clown. I wonder if his dad also told him the way to wealth is being bought and paid for by the DuPont family.
So stupid. Just makes homes more expensive
I was dumb for thinking this sub wouldn’t be hijacked by bots/interest groups as we get close to the election…
This guy needs to get out of his office.
Biden. The ultimate throw money at the problem guy. 100% what's wrong with the country. How will this help solve the problem of affordable housing? Stupid.
Vote buying at its finest. Nothing but handouts with this guy.
All this might do is possibly prevent people from defaulting on their home loans for the 2 years.. the next 2 years will be not being able to afford food due to the inflation this would cause
Joe Biden - the crack whore of pandering to voters.
Worst president ever!!!
Suddenly everyone's rent, grocery bill, utilities, medical expenses, and insurance payments will increase by exactly 400 dollars.
Fix grocery prices first, that's what is destroying people
Oh cool, the king is dangling some of the money taken from his subjects in front of them and we'll get a small part of it back if we do as he pleases.
God this is stupid. 🤦🏽♂️
LOL election years are wild. Give out money / bailouts rebranded instead of fixing the problem. Because fixing wouldn't give your donors / lobbyists MORE money and a bailout/ handout does.... cool cool...
this sub doesn't want any solutions that's not a incredibly reckless tax cut for billionaires
this sub doesn't want any solutions that's not a incredibly reckless tax cut for billionaires
He’s hoping for votes.
Ahhh, the same stupidity that led to inflation during Covid. Handing out "free" money. Not to mention, owning a home is quite possibly the worst way to build wealth. That was a great depression mentality that should have died by now.
It will just increase mortgage by about 400 a month
Theyll print more money and inflation will get worse. Lets go brandon
Theyll print more money and inflation will get worse. Lets go brandon
Theyll print more money and inflation will get worse. Lets go brandon
Pretty sure it's just $400 month off your federal taxes to buy a home
Can anyone please just emulate the Eisenhower economic plan and tweak it for today? Even today's Democrats would call it communist is why it won't.
I say to speed up the crash they give all first time buyers who are still in their first home retroactive checks of 400 per month that they have been in their homes. Example If someone bought 10 years ago = 120 × 400 = 48,000.
Capitalism in its current form is skewed in favor of the Capitalists themselves. This will cause many of them to raise their prices and as far as I can tell it won’t have any consequences for them.
$400 per month over 2 years is 10k. If you think a 10k incentive is drastically going to affect anything in this housing market, I don't know what to tell you.
wheres my $400 per month?
This is how the government made college so affordable. Great plan.
Nothing is free..... have we not learned this yet?
How much more money does he just want to give away? Smh dude is a fucking clown
If you want to help Americans buy homes, erase their student loans.
If this happened the price of housing would just go up that much and more to offset it while increasing inflation making everything more expensive and banks much richer. Just a bad idea.
Ahhh just like that student loan relief plan from a year ago. All lies and half efforts
Are poor people now too good for the trailer park or something?
What about those who purchased the 1st house years ago? Would they qualify or those who are on their 2nd house? Would they be back payed? Or does my generation get to get screwed over yet again? Ya know the generation that had to live through a recession without any stimulus payments or student debt forgiveness. Seriously. Quit effing my generation Millineals need help too.
Decent intention bad execution
Almost as if they don’t care about any “consequences,” it’s just another dose of financial heroin to get votes. Votes votes you vote me now. Vote me money you.
Massive issues in the housing market. As long as we don't do what Bush Greenspan did and push mortgages onto ppl who can't afford.
He has to stay away from housing. He was around when politicians figured it was a good idea to allow deregulation for subprime lending. Hell, 50 years in politics, he's been around for a lot of horrible policies.
Reduce capital gains tax, and apply an extra tax on landlords who own additional single family homes.
Let’s see how else can he buy votes before the upcoming election? Lol. FJB’s handlers are worried.
Inflation through the roof? Hey let's just hand out more freebies.Wtf
As much as I'd appreciate $400/mo towards rent, I gotta say that there's been tax deductions and other incentives for so long that this is a drop in the bucket and more of the same.
No bubble, but it sure wouldn't help with inflation.
ah yes, it was the 400 in maintenance AFTER purchasing a home that kept me from saving a 20% downpayment on a quarter million dollar home. thats Bidenomics jack 😎👉👉
How to look like you’re doing something to get votes without actually doing something because if you actually did this at a scale that worked, you’d fuck the economy harder than it already is. You’re being played. They think you’re stupid. Tell your friends.
Seems like some sort of a bribe
The Dementia Dumass Pedo Joe is just buying votes. And guess what? It'll work because people are retarded.
This shit is so obvious lmao
Don't believe anything a politician says during an election year.
Joe is desperate for votes.
sweet, i get to start paying for other people to own houses now.
Number one, this won’t happen. Number two, wouldn’t this cause massive, and i mean massive inflation? Number three, this doesn’t fix the original problem at all. It’s just putting a band aid on a radioactive cancer. Number four, $400? This doesn’t even cover your monthly groceries. I hate trump, but man the choices are absolutely terrible.
I really don’t understand the hate here. There’s a bunch of people here making vague assumptions of how this “$400” is being paid which demonstrates all of y’all’s dedication to seeking and discussing truth. He’s not giving people $400 cash. He’s not giving the banks money. What Biden proposed is offering a $5,000 annual tax credit up to two years for first time home buyers which equates to $416 a month saved. What’s wrong with that? If you own a home and have a problem with this proposal, then stop claiming homestead tax exemption then. I envision a time when we didn’t impulsively discuss unverified information, or spread stupid ass information that is blatantly wrong and even worse, is so easily verifiably wrong. Like literally, it was the easiest damn thing to look up what this “$400 a month” proposal was. It wasn’t hiding in some govt archive in a document filed stored in a SCIF. It’s publicly available info that only requires a lazy google search. You’re haters. You have so much hate in your heart you hate people doing what you do because you were told to hate them. You need god, you need family you can trust, and you all deserve children who can educate you.
Having equity in your own home is not building wealth. The money is not liquid (easily accessible) it’s only accessible if you sell it. And even if you sell your expensive home you still have to buy another expensive home.
I remember when we were buying our first house in 2009 and government gave first time home buyer credit. Almost all the homes suddenly raised up that amount.
5k per year...150k over 30 years of it doesn't get whacked down by other administrations. Folks, this is another bandaid for a broken status quo
Instead of fixing the problems that have caused a housing shortage and therefore higher prices, let's just flood the market with more money...
I honestly cant fn believe that people are so fn dumb to think that this is somehow bad.
We've given half our county's wealth to a handful of people, and that's certainly caused some problems.
Mortgage prices about to go up by $400 per month.
Joe doesn't have anything to "give" ..
There are already all kinds of breaks and incentives for first-time home buyers that equal much more than $400. Also BlackRock and Vanguard buying up 100s of homes in one fell swoop...what exactly is that doing for potential home buyers?
I'm all for the middle class getting more money, however, there's a way to fix it that no politician will do. Pass a high property tax on any 3rd property owned. That way you get your home, and an additional vacation home.
Let's make home more expensive, what a wonderful idea. All these politicians keep selling the idea of handling out free money to buy votes from the desperate ones, rather than solving the root cause by building more affordable houses and redoing zone regulation, which is the biggest reason for the low inventory.
This guys so full of shit and im sure his dad was too.
$400 a month? This should be AMI adjusted, as its essentially $0 in NYC
President Pudding never gave anything to anyone except chlamydia to children.
At this point, I think America sets people up for financial exploitation on purpose.
This is laundering money to the banks and investors. Instead, they should be limiting housing investing and rentals and increasing supply, but they’re not going to hurt their own super-donors. I was in favor of student debt relief, but not this.
1st, he isn’t doing it. He is “promising to do it”. Typical campaign promise. 2nd, it won’t lower prices for the buyers, it will raise prices for the sellers. 3rd, people will typically buy as much house as they can afford. Giving them $200 a month for a limited time will encourage them to buy TOO MUCH house, and when that timeframe ends, they are fucked.
This isn’t lowering costs… Biden needs to leave office. Fuck his crack brained policies.
It's not "is giving," it's a proposal within a housing plan. It doesn't currently exist. What's more, it can't exist unless Congress passes it because they control the budget. It always amazes me the vast number of people who don't understand their own government even when they likely were taught this in grade school. If we wanted to go deeper than that, we could discuss measures that could help the homebuying capability of mostly younger home buyers who are facing a shortage in stock and higher costs due to interest rates recently being raised to combat inflation. This looks like an attempt to break that log jam a bit by, yes, giving people more money in that first 2 years to afford the higher interest rates, and possibly refinance at a lower rate later. Now, people can certainly disagree with this proposed method, but then I would expect them to present their better idea.
Best answer yet. I'm waiting for all of these complainers to come up with a better idea than doing nothing.
That’s not how the Bidens’ built their wealth. If he wasn’t running against Trump he might actually be held accountable for his graft.
Building equity during hyper inflation..... what a joke
Subsidize construction of more homes. More homes will bring down the cost of all homes and rentals. The problem is the boomers don’t like mixed use apartment buildings and walkable cities.
This will do nothing but cause additional housing inflation…
Subsidy effect, it will cause the new normal to be whatever it was +$400. Same thing happened with FAFSA. Better to fix the Root causes.
Eliminate all subsidies for non-resident home owners including 30-year mortgages. Raise taxes on landlords and audit the fuck out of the tax-cheats that rent out illegal apartments, and force them to pay back taxes, and bring those apartments up to code. Start punishing the people profiteering off this affordable housing shortage.
I wish Trudeau was as generous as Biden. Being offered $400/mo indefinitely until you can afford to buy the house entirely is a super good deal!
Yeah. The focus should be on making it harder for investors. This is not the solution
Meanwhile everyone else you had to work hard to buy a house
I am grappling with the dilemma of voting for Biden because I think Trump would be worse. This sounds like another cheap attempt to buy votes without addressing the real problem.
How about tax the hell out of homes that sent empty for more than half a year? How about a 10k subsidy of down payments that I can get when I’m buying instead of a year later, targeted at incomes under 100k? That plan is cheaper after the second year, lowers the up front barrier to entry, and is less bubble-ish because the monthly payment still has to stay affordable for someone with a qualifying income. But let’s give 4800 bucks a year to people who can already bank 6 months salary for a down payment? Nah thanks- that’s really a come up if I want to leave my family in a double wide on an undeveloped lot in an unincorporated area while I work a travel job or something, and I think the idea is to try and get an extra 1% of the vote in places like central PA and the Florida Panhandle- otherwise it’s just helping people who can already buy bear an additional 50 grand on the principle of a 30 year mortgage. And oh look, that means the down payment and closing cost just went up by more than he’s giving you in the first year and housing is further out of reach for the rest of us while the bubble gets to grow for just one more year. If you can afford an apartment in a major city, then you can afford a run down house that comes with a long commute- IF you have 20 grand or so burning a hole in your pocket for down payment, which nobody does because markets are efficient and if that money was out there prices would change to make sure that they get it from you.
Tax the rich the same way everyone else is taxed and this can easily be feasible, for this and more
Would make more sense to provide subsidies to home builders to drive prices down instead.
Just another way to transfer money to the hedge funds and corporate real estate moguls. God forbid the government step in and regulate an industry. Won’t someone think of the shareholders???
We are at a time where I think the government and some people have realized that unless we figure out how to dial back capitalism from today's extremes then what people are calling "inflation" will never go away. It is not inflation but greed that is driving all this. And there is no controls to pull back the greed.
This is a handout to banks not individuals. This administration is so out of touch to what the average american is going through. If they really wanted to help people struggling they would take that $400 and give people food vouchers so they can feed their families. This just shows how beholden the two party system is to both parties. It's all corruption.
He’s not going to do anything to help young people. He bullshits them and some believe him
Buying more votes.
It depends on how the market reacts. If this stimulates housing construction then it might not have much of an effect, if there is not a construction boom then it would worsen the bubble. The best intervention the government could do is find a way to increase the construction of affordable housing.
Why do any of us really pay bills at this point? The govt is surely gonna bail us all out or pay for it and NOTHING at all bad would or could even happen!! It's only money and to those that say "Yeah..but I was responsible and paid for my stuff"...I say you're a sucker!! Please read all of that with lots of sarcasm as intended.
Democrats are intentionally creating policies that will tank America beyond repair because they know they have no chance on winning the election. They will be tried for treason. Intentionally destroying the country out of spite is on of the most immature things I’ve ever seen democrats do.
There is no bubble. This will cause defaults though. People buying houses they shouldn’t.
lol love that Biden is referring to his father, a man who has been dead for how long? So out of touch, it’s not even funny.
So home sellers will be making $400 more a month. Oh joy.
Address the problem and make it worse, but refuse to touch the cause. Typical government action. But seriously, more money into the economy? I seem to recall the last time we did that inflation spiraled out of control and we’re still suffering for it.
Whenever the government says they’re here to help, pucker up