Comments on: Just How Regressive is America’s Federal Housing Policy? http://la.streetsblog.org/2009/11/20/just-how-regressive-is-america%e2%80%99s-federal-housing-policy/ Covering Los Angeles's livable streets movement Tue, 07 Feb 2012 14:06:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: calwatch http://la.streetsblog.org/2009/11/20/just-how-regressive-is-america%e2%80%99s-federal-housing-policy/comment-page-1/#comment-51701 calwatch Wed, 25 Nov 2009 07:18:06 +0000 http://la.streetsblog.org/?p=21791#comment-51701 However, homeownership also is the biggest source of inheritance that most families have. When done PROPERLY (with 20% down and a 15 or 30 year fixed mortgage with payment no more than 33% of your gross monthly income) it can be a great store of wealth. My folks are subsisting off a meager Social Security check, but they have no house payment, and thanks to Proposition 13, their property taxes are predictable and manageable. The backyard can be used for raising vegetables, chickens, etc. Overall they are living a sustainable lifestyle, that could not be done if they remained renters the rest of their life. However, homeownership also is the biggest source of inheritance that most families have. When done PROPERLY (with 20% down and a 15 or 30 year fixed mortgage with payment no more than 33% of your gross monthly income) it can be a great store of wealth. My folks are subsisting off a meager Social Security check, but they have no house payment, and thanks to Proposition 13, their property taxes are predictable and manageable. The backyard can be used for raising vegetables, chickens, etc. Overall they are living a sustainable lifestyle, that could not be done if they remained renters the rest of their life.

]]> By: Dave9 http://la.streetsblog.org/2009/11/20/just-how-regressive-is-america%e2%80%99s-federal-housing-policy/comment-page-1/#comment-51061 Dave9 Sun, 22 Nov 2009 21:04:16 +0000 http://la.streetsblog.org/?p=21791#comment-51061 One problem generally is that home ownership is a way to make the rich even richer. Think about it, how does a person with money make more money; by lending it with interest to people with less money. The biggest loan a typical person takes out is their home mortgage. Everyone, from the federal government on down, stands to make money if you buy a house: It's American consumerism with the biggest stakes... One problem generally is that home ownership is a way to make the rich even richer. Think about it, how does a person with money make more money; by lending it with interest to people with less money. The biggest loan a typical person takes out is their home mortgage. Everyone, from the federal government on down, stands to make money if you buy a house: It’s American consumerism with the biggest stakes…

]]> By: ubrayj02 http://la.streetsblog.org/2009/11/20/just-how-regressive-is-america%e2%80%99s-federal-housing-policy/comment-page-1/#comment-50981 ubrayj02 Sat, 21 Nov 2009 19:01:34 +0000 http://la.streetsblog.org/?p=21791#comment-50981 The problem that politicians have is that most of their constituents wouldn't live where they lived without the intricate web of government handouts that keep people buying homes. Take away those home ownership handouts and even the Teabaggers will be up in arms whining about how their give-away went away. Politically, it is tough to fight against the cluelessness of the entitled The problem that politicians have is that most of their constituents wouldn’t live where they lived without the intricate web of government handouts that keep people buying homes.

Take away those home ownership handouts and even the Teabaggers will be up in arms whining about how their give-away went away.

Politically, it is tough to fight against the cluelessness of the entitled

]]> By: cfh http://la.streetsblog.org/2009/11/20/just-how-regressive-is-america%e2%80%99s-federal-housing-policy/comment-page-1/#comment-50831 cfh Sat, 21 Nov 2009 00:46:00 +0000 http://la.streetsblog.org/?p=21791#comment-50831 "That spending on homeowners included $80 billion for the tax deduction for mortgage interest, $16 billion for the state and local property-tax deduction and $16 billion for the capital-gains exclusion." I don't agree that these items are subsidies for home ownership vs. renters. Landlords can deduct mortgage interest and property taxes as business expenses, and also benefit from capital gains treatment of property sale proceeds. All these provisions are factored in to rental rates. On the contrary, if this kind of favored tax treatment were not available individual home owners, they would face substantial penalties vs. rental owners. These provisions simply even thing up. “That spending on homeowners included $80 billion for the tax deduction for mortgage interest, $16 billion for the state and local property-tax deduction and $16 billion for the capital-gains exclusion.”

I don’t agree that these items are subsidies for home ownership vs. renters.

Landlords can deduct mortgage interest and property taxes as business expenses, and also benefit from capital gains treatment of property sale proceeds. All these provisions are factored in to rental rates.

On the contrary, if this kind of favored tax treatment were not available individual home owners, they would face substantial penalties vs. rental owners.

These provisions simply even thing up.

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