Quote:
Originally Posted by redpoint5
The thing is, if someone could afford to float the money for a year anyhow, then they didn't need the credit to make the purchase in the first place..
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Any poor slob can get $100,000+ of loans making your point somewhat obtuse
Years ago I Was a poor slob myself , and could easily afford most anything, it’s just that I lived frugally and saved up so I could make large purchases.
The real issue lies with banking and loans enabling sellers to overcharge and buyers to overpay, where I grew up housing has gained value EXTREMELY slowly and houses sell for the same price today that they did 20 years ago, which is how housing values should work matching income and inflation, 100 miles away where I live now little 100 year old dives with no yard or driveway are selling for $100000+, 3 years ago their sales value was about $20-$40k, 8 years before that they were $80k, 3 years before that they sold for about $25,000
30 minutes away I can buy a mansion of a farmstead with 2 acres, a gazebo and a shop is $165,000 in excellent shape, but the same money here buys me a very small 3 bedroom, 1 car garage and ubout a 1/10th acre .
The only thing that has changed over the years is the transient employment levels. Whereas my home town has steady but not well paying jobs.
The real value of these local homes has always probably been $0-$40,000 and hasn’t changed but because of loans and predatory practices you get a completely unnecessary boom bust cycle aggrevated even more by piss poor community management practices trying to demolish the poor people’s homes (during a lack of housing crisis) creating vacant lots that can’t be rebuilt due to ever changing laws on lot and house sizes.
The town also favors tax sales to the 2 slum lords who own about 1/3 of houses jacking up rent while creating more blight.
One would think keeping the poor people as home owners paying taxes would be better than 2 slum lords that can negotiate property taxes. Further allowing people to legally rebuild vacant city lots without blowing a cool million would help things too.
I view the automotive side of loans the same as homes enabling bad decisions, the tax subsidy could help the poor if structured properly but it would be unpopular, just as unpopular as low home values
(even though high ones help no one for long, save the bank and the local tax collector)