2019 Apr 23, 10:02am
1,070 views 14 comments
This is insanity. Pure insanity.Want affordable housing? I said fucking HOUSING...not 'affordable' DEBT.Easy: Withdraw federal support for jumbo mortgages, require ALL mortgages to require AT LEAST 20% down and impose a 15% federal sales tax on the difference between $300k and the total sales price (not capital gain) of all houses sold nation wide. Oh, and the feds get their tax money FIRST when the escrow puke starts cutting the checks: on pain of 10 years in prison if said escrow puke does not do so.So: For a 2,700 square foot 5 bedroom house in Kansas that sells for $270k on a full acre lot land: no federal sales tax. If someone financed that purchase all via mortgage then they would have to cough up at least $54k for the down payment. For a postage-stamp sized lot 2 bedroom condo in San Mateo that sells for $650k: federal sales tax of $52,500 ($650,000 - $300,000 = $350,000 sales taxable amount; 15% of $350,000 = $52,500) and a down payment o...
Agree with most of this BUT the sales tax piece. What exactly does this help/pay for when going to the Feds? Why do we wish to make it MORE expensive to get into a house, sending money that is somewhere particularly UN-productive? As for the level of $300,000 exemption, why is that the number and what could adjust it up or down possibly by C.O.L.?
SunnyvaleCA saysA 15% tax would take about 5 YEARS of payments on a 30 year mortgage to recoup.Why on Earth would the sales tax be rolled into the mortgage? Current closing fees and taxes do not nor are property taxes?Especially since it will be paid for by the seller. Unless the buyer is totally stupid.
A 15% tax would take about 5 YEARS of payments on a 30 year mortgage to recoup.
If someone doesn't have a million free and clear for a downpayment, there is no reason to take them seriously as a homebuyer. much less a human being.
APOCALYPSEFUCKisShostikovitch saysIf someone doesn't have a million free and clear for a downpayment, there is no reason to take them seriously as a homebuyer. much less a human being.Hehehe... CASH OR FUCK YOU NATION!!!You guys know what would happen to home prices if you could only buy them in cash? A 3/2 in Palo Alto would be $475k
Since it will be paid for by the seller? The buyer WILL be the one paying the sales tax, as he/she will be the one providing the currency for the sale.... Really think the seller will sell below market 15% to cover the sales tax cost?
Seriously? So, what other forms of sales tax do you know of that aren't indirectly paid for as a pass on to the buyer?
You guys know what would happen to home prices if you could only buy them in cash? A 3/2 in Palo Alto would be $475k
BayArea saysYou guys know what would happen to home prices if you could only buy them in cash? A 3/2 in Palo Alto would be $475kThe MEDIAN house in Palo Alto is something like $3M. A 20% down payment on that loan would be $600k. So, a person buying in Palo Alto now could certainly pay out more than $475k in cash.You could say that everyone already DOES pay cash. I get a mortgage from a bank, the bank hands me a huge wad of cash, and I then pay for the house in cash. If you don't consider that "in cash" because a bank is involved, then loans would just go off the books. For example, I might consider loaning a friend $3M so they could buy a house "in cash."