Counties in Utah hit especially hard
Your home is merely a box to keep your stuff in.Whoever convinced
people that their house was an "investment", something to be flipped
over and over in a mad scheme to get rich quickly, did a disservice to the
United States of America and our economy.Stay in your house. Keep
paying for it. You signed the loan. Isn't it personal
Reasonable, I think you are missing the mark. If a person can sell their house,
cash in, and move up, that's not the problem. The problem was the
predatory lending and unsafe mortgage practices of the banks. THEY are the ones
that have done the nation a disservice. Also, there is consensus building
(among economists....bankers and politicians won't TOUCH this idea) that
the mortgage interest tax deduction distorts the housing market and elicits some
of the problematic behavior you are trying to identify in your comment. That
deduction also is very regressive, greatly favoring the wealthy home buyers who
are buying mansions. Many economists advocate eliminating that deduction, which
will correct the market distortions, resulting in lower home prices across the
board. For more details on this thinking, do a search about mortgage interest
tax on NPR's website.
2008 is not a good point to use as a benchmark. That was at the end of a several
year period of increasing value that was based on a great deal of market
manipulation, including extremely low interest rates, waivers of impact fees,
and general encouragement of construction at rates not justified by actual
population growth, fueling home construction as an investment bubble. Try
comparing the current housing market to 2002 instead, and you'll get a much
better indication of whether the market has rebounded to its normal condition.
We don't need it returning to an unsustainable frenzy.
Agreed. I have always thought of a home as a place to live, not an investment.
The upshot of this thinking is you don't care terribly much if your home
falls in value, it still provides the same value to you whether or not the
market values it as much! The only concern is if you have to sell to relocate,
then it can become a problem if the home has lost value. My wife and
I bought our first home last year, and we bought what we could comfortably
afford then, on the salary I made then. All sorts of people tried to give me
advice, bad advice mind you. People told me that I HAD to have a 3 car garage,
that I wouldn't be able to function with less than 3000 square feet, and
that I should buy the absolute most that I could afford; that I would "grow
into it" as my salary increased over the years. I told them unless they were
willing to sign a legal document guaranteeing that my salary would increase for
the next 10 years I thought that was a stupid idea.
Love it AndyJaggy! Would that we were all as wise, and not just when it comes