Home Ownership

[hobart]

Originally Posted by maskedmelon [You must be logged in to view images. Log in or Register.]

Why not just stop pouring dollars into the system tho? The majority of the increase in price is due to the currency devaluation.

Originally Posted by maskedmelon [You must be logged in to view images. Log in or Register.]

Do you mean that you would make rental housing illegal? �� What about people who don’t want to live in an apartment, but lack the savings for a down payment, or do not qualify for a loan?

And you don’t care about currency devaluation or its impact on housing prices? I am just curious about this piece since it is relevant to your OP on the housing market.

"Currency devaluation" has little or nothing to do with the increase in the prices of investment real estate and, thusly, rents.

1031 exchanges combined with historically low capital gains, the ability to take accelerated depreciation, cost segregation, and increases in property taxes, continue to drive the demand for investment real estate and continue to encourage people to take gains 3-5 years into the ownership cycle. And now that you've sold, you can overpay up to 38% more than the market value on the property you're re-investing in and still come out ahead...