• Rivalarrival@lemmy.today
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    7 hours ago

    No, you’re not the problem there. The problem in your scenario is the landlords buying up all available real estate and leasing it back. Not you.

    That million dollar gain has no actual value to you. You can’t get that money out of the house, because you’ll need to spend it to acquire new housing.

    And in the meantime, your tax payments are going to increase: you’re a victim of corporate investment in the housing market, not a perpetrator.

    • BlameThePeacock@lemmy.ca
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      3 hours ago

      Why do people keep saying that I can’t get that money out of the house?

      • I can use the equity as an asset to borrow money at low interest rates compared to unsecured loans.
      • I can sell the property and move to a lower cost of living location, or even just a smaller home if I wanted.
      • I can rent part of the property out at a rate commensurate with it’s current value.

      And, to top off your stupid assumptions, you say my tax payments will increase. That’s not how property tax is calculated at all. People see “Taxes per 100k” and assume that if your house price goes up, so do the taxes. Instead, municipalities set a total budget, and just divide it by the total value of all the homes in the area to come up with something called the “Mill rate.” If the municipal budget doesn’t change year to year, and all the house prices go up evenly, the mill rate simply goes down.