Economics Thread

thethe said:
Its a fantastic option for people to use their saving as they see fit without egregious penalities.
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It’s great for people that already own homes and people like Tapate who are better at real estate investing than 401k investing.

Your description is an oversimplification. 401k are tax advantaged accounts. It’s government stimulus subsidies with an extra step.
 
chop2chip said:
It’s great for people that already own homes and people like Tapate who are better at real estate investing than 401k investing.

Your description is an oversimplification. 401k are tax advantaged accounts. It’s government stimulus subsidies with an extra step.
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Its not an oversimplification - We tell people to invest and own assets. All this does it a conversion of assets with the original tax benefit savings. Not enough people have the ability to save for retirement and a home. We should force them to choose but have the liquidity to address both.
 
Its such a joke to believe a study that shows nearly full pass through whcih would mean in many cases prices increasing by 20-30%.

This is like people who think things like the PS5 packs go more expensive because a CEO said it but never came true.
 
thethe said:
Its such a joke to believe a study that shows nearly full pass through whcih would mean in many cases prices increasing by 20-30%.

This is like people who think things like the PS5 packs go more expensive because a CEO said it but never came true.
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Well you can go on Amazon and look at the price history and see the launch price of $499 and now is $549.
 
thethe said:
Its not an oversimplification - We tell people to invest and own assets. All this does it a conversion of assets with the original tax benefit savings. Not enough people have the ability to save for retirement and a home. We should force them to choose but have the liquidity to address both.
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In your estimation, what type of housing problem do we have in this country?

Demand or supply?
 
Tapate50 said:
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I’ve done this and would do again.

Literally buying a house has earned me 4x the return than my 401k has over the same period. And enabled us to land in a bigger home twice.

Most of the time the house we are buying is available before ours can sell so the equity is locked up until ours would have sold.

This is a positive
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Yeah this was a weird one to me. I assumed everyone used their 401k that way. Why would I pay a bank interest instead of myself?
 
Tapate50 said:
Various funds provided by John Hancock, but I made 125k on my last home sale in less than 6 years.

In addition to about 14% returns. One year was nuts at like 28%.
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Nice.

Real estate is fantastic if you are already in. The problem is new home owners trying to buy in a market that allowed you to quadruple your investment in a short period of time (i.e. housing inflation isn’t a good thang)
 
chop2chip said:
Nice.

Real estate is fantastic if you are already in. The problem is new home owners trying to buy in a market that allowed you to quadruple your investment (i.e. housing inflation isn’t a good thang)
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Yeah and they are addressing that.

Ours wasn’t really due to inflation as much as a market correction. We have been undervalued for a loooong time.

Really couldn’t have played it any better though as we have forever home and acreage with water views locked in at like 3.65%
 
mqt said:
Your contention is there’s less demand for housing than supply?
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No my contention has always been that the demand side has spiked way more than the market can handle and under the previous regimes policy we could have 10X our home production and it wouldn't have been enough.

When 5-10M people are deported the equation will fine an equilibrium that will result in a price point for entry much more suitable for the next generation.
 
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