There is so much wrong here in US…when a 20 y.o. figures this out in 3 minutes why is it taking our leaders years to even hear us? This makes me sick. Biden’s plan is stupid…5k tax deduction for 2 years and $25k for first generation buyers…WTF….?? why is my kid less important than an emigrant?
I see nothing in there that will help anything…and as with most government intervention it will make things worse…this smells suspiciously like the plan they had to take over the college tuition funding under Obama…all that did was inflate everything and “make it worse”. It’s pretty simple …. Stop the inflation…everything else follows.
Unfortunately, RFK, Jr., appears to have little or no knowledge of real economic reform. He should take a look at Congr. Massey's proposal to abolish the Fed as a place to start.
Interventions in the market like this often have undesirable consequences. They sound good but the devil is always in the details. How do the “Treasury-backed bonds” work?
"firms such as Blackrock, Vanguard and State Street operate. “They can outbid you and they can outbid your children,” said Kennedy. “Our families are not competing against these companies, which are trying to buy every single family home.”" Bingo. Massive corporate ownership of family residences needs to be stopped and reversed.
The main reason home ownership is so vitally important is because it is the biggest driver to wealth accumulation for (almost) everyone that participates. And over a lifetime, this wealth accumulation from home ownership is mostly tax-free and definitely tax-advantaged. It should be taken advantage of by everyone that can participate.
Starting with a plan to stop the ownership of single family homes by Institutional investors like Blackrock, Vanguard and Street, would make a huge difference. I believe there was a bill introduced last year which would require these investors to stop buying and to divest of all their single family homes over a 10 year period at 10% per year. That Alone would go a long way to bringing prices back in line and helping young families to buy homes.
I am a 40 year mortgage professional and investor. The 3% is a great dream, but the reality is that the bonds have to be sold, and investors have to buy them. Treasuries are Federal tax free, where Mortgage backed securities are fully taxable. If the bonds were federal tax free that would make them more attractive to investors. Loans have to be serviced and typically there is also a portion that is imbedded in case loans go into default to create a pool to cover that loss (Although, after 2007, the Federal government put that fee 1/4% fee into the general income pool). The fee for servicing a loan is 1/4%, so that would leave 2.5% net for an investor.
A 5 year treasury is 4.53% today. If an investor were buying a 2.5% bond the discount would be 45%. Meaning the government would be picking up $45,000 on a
$100,000 bond in the discount required for an investor to have same yield as on a treasury rate today.
I believe Bobby has a great thought, but there are probably better ways to accomplish his goals. I am in agreement and very upset that the Institutional investors are being allowed to buy up our housing stock making it almost impossible for our young people to buy homes. If Bobby would like to talk about it, he could find us by talking with either Mary, or Pierre.
To slow or stop Backrock etc from owning so many houses use a land tax solution. If anyone owns a total value of housing land over a certain amount then you are subject to an annual land value tax. All land is already professionally valued for local council rates, and the rates are based on the value of the land you own, or at least it is in Australia. To stop the biggest companies, simply make the tax progressive ie below $1 million no tax, $1 million pays 1/4%, $15 million pays 2 %, $200 million pays 4%. Put in a % that makes a difference.
How can one get through to RFK Jr to get him to voice his opinion on the approved class action settlement involving the East Palestine, Ohio train derailment? He says he’s involved (or his firm?) and is representing 1000 clients.
It's not just Gen Z that can't afford housing.
There is so much wrong here in US…when a 20 y.o. figures this out in 3 minutes why is it taking our leaders years to even hear us? This makes me sick. Biden’s plan is stupid…5k tax deduction for 2 years and $25k for first generation buyers…WTF….?? why is my kid less important than an emigrant?
Your child is less important because your kid is not a guaranteed vote for the democrat party.
Pathetic, I know, but corrupt politicians have no limits as to what they’ll do to stay in power.
I see nothing in there that will help anything…and as with most government intervention it will make things worse…this smells suspiciously like the plan they had to take over the college tuition funding under Obama…all that did was inflate everything and “make it worse”. It’s pretty simple …. Stop the inflation…everything else follows.
Unfortunately, RFK, Jr., appears to have little or no knowledge of real economic reform. He should take a look at Congr. Massey's proposal to abolish the Fed as a place to start.
Also see: https://rickycook21.substack.com/publish/home
How is the 4% difference between the 7% and the 3% made up with the banks?
Interventions in the market like this often have undesirable consequences. They sound good but the devil is always in the details. How do the “Treasury-backed bonds” work?
"firms such as Blackrock, Vanguard and State Street operate. “They can outbid you and they can outbid your children,” said Kennedy. “Our families are not competing against these companies, which are trying to buy every single family home.”" Bingo. Massive corporate ownership of family residences needs to be stopped and reversed.
The main reason home ownership is so vitally important is because it is the biggest driver to wealth accumulation for (almost) everyone that participates. And over a lifetime, this wealth accumulation from home ownership is mostly tax-free and definitely tax-advantaged. It should be taken advantage of by everyone that can participate.
Starting with a plan to stop the ownership of single family homes by Institutional investors like Blackrock, Vanguard and Street, would make a huge difference. I believe there was a bill introduced last year which would require these investors to stop buying and to divest of all their single family homes over a 10 year period at 10% per year. That Alone would go a long way to bringing prices back in line and helping young families to buy homes.
I am a 40 year mortgage professional and investor. The 3% is a great dream, but the reality is that the bonds have to be sold, and investors have to buy them. Treasuries are Federal tax free, where Mortgage backed securities are fully taxable. If the bonds were federal tax free that would make them more attractive to investors. Loans have to be serviced and typically there is also a portion that is imbedded in case loans go into default to create a pool to cover that loss (Although, after 2007, the Federal government put that fee 1/4% fee into the general income pool). The fee for servicing a loan is 1/4%, so that would leave 2.5% net for an investor.
A 5 year treasury is 4.53% today. If an investor were buying a 2.5% bond the discount would be 45%. Meaning the government would be picking up $45,000 on a
$100,000 bond in the discount required for an investor to have same yield as on a treasury rate today.
I believe Bobby has a great thought, but there are probably better ways to accomplish his goals. I am in agreement and very upset that the Institutional investors are being allowed to buy up our housing stock making it almost impossible for our young people to buy homes. If Bobby would like to talk about it, he could find us by talking with either Mary, or Pierre.
To slow or stop Backrock etc from owning so many houses use a land tax solution. If anyone owns a total value of housing land over a certain amount then you are subject to an annual land value tax. All land is already professionally valued for local council rates, and the rates are based on the value of the land you own, or at least it is in Australia. To stop the biggest companies, simply make the tax progressive ie below $1 million no tax, $1 million pays 1/4%, $15 million pays 2 %, $200 million pays 4%. Put in a % that makes a difference.
Miles and Beaconites,
How exactly is RFK going to help the Gen Z ers?
He is down with paying reparations, which is a Demtard idea
pandering to a specific demographic.
So Miles thinks its uber important to bypass the huge isses and talk about the hypothetical way
we are going to make home ownership possible for Gen Z. Brilliant Miles.
No need to dis-assemble this. Really is this the best that the Beacon can do??
Realize RFK needs to attract votes but come on??
"How a President RFK Jr. Would Help Gen-Z Buy Their First Homes"
I know! With unconditional support for Israel!
How can one get through to RFK Jr to get him to voice his opinion on the approved class action settlement involving the East Palestine, Ohio train derailment? He says he’s involved (or his firm?) and is representing 1000 clients.
They sure are trying to push this through fast!