Taxachusetts

[BabyBoomer50s]

If home mortgage rates hovering around 8% aren’t scary enough for Halloween home buyers, the governor of Massachusetts is rolling out another goblin. She’s released a proposal that would let local communities impose a 0.5 to 2 percent fee on property sale proceeds over $1 million, or the county’s median home sales price, whichever is greater. Instead of going into a general fund, the revenue would be set aside to support housing that the state deems affordable.


https://commonwealthmagazine.org/housing/healey-wades-in-on-real-estate-transfer-fee-2/

 

[Fuzzy1975]

If home mortgage rates hovering around 8% aren’t scary enough for Halloween home buyers, the governor of Massachusetts is rolling out another goblin. She’s released a proposal that would let local communities impose a 0.5 to 2 percent fee on property sale proceeds over $1 million, or the county’s median home sales price, whichever is greater. Instead of going into a general fund, the revenue would be set aside to support housing that the state deems affordable.


https://commonwealthmagazine.org/housing/healey-wades-in-on-real-estate-transfer-fee-2/

The 1981 home mortgage rate was 19.2% on variable and 18.13% on 5 year fixed. 8% isn't really that high....

 

[phrodeau]

Oh, they’re taxing rich people? How terrible.

 

[RoryN]

Some serious barrel-scraping with this thread...slow Deplorable news day.

 

[ll74]

Properly using taxes to help expand the economy.

How horrible.

 

[BabyBoomer50s]

The 1981 home mortgage rate was 19.2% on variable and 18.13% on 5 year fixed. 8% isn't really that high....

I paid double digit rates in the 80s. It sucked. 8% sucks less, but try explaining that to a young family trying to buy a decent house today.

 

[Sean Renaud]

I paid double digit rates in the 80s. It sucked. 8% sucks less, but try explaining that to a young family trying to buy a decent house today.

What you need to explain to us/them is why you let so much power concentrate in the hands of so few that prices are like this. Fuck the interest rates.

 

[RoryN]

try explaining that to a young family trying to buy a decent house today.

"Young family trying to buy a house" is so 2006.

Dude, Gen Z isn't even trying.

 

[Sean Renaud]

Most of us millennials know if we aren't inheriting from our parents that shit ain't happening.

 

[BabyBoomer50s]

"Young family trying to buy a house" is so 2006.

Dude, Gen Z isn't even trying.

Can’t blame them. It’s cheaper to rent than own these days. Someone trying to buy a decent median priced house in places like the Bay Area is looking at monthly mortgage payments of well over $5K. That doesn’t even include the property tax bill which would be at least $1,200 per month on the low end.

 

[ll74]

The great thing about owning a house is that you aren't throwing money into the void with rent.

The good thing about being a millionaire is having multiple houses and deciding which one to live in while spending money traveling the world.

 

[Rotadom]

It’s cheaper to rent than own these days.

No, it's not.

 

[BabyBoomer50s]

The great thing about owning a house is that you aren't throwing money into the void with rent.

The good thing about being a millionaire is having multiple houses and deciding which one to live in while spending money traveling the world.

Very true. Especially millionaires with no mortgages or who locked in when rates were around 2.75%.

 

[ll74]

Very true. Especially millionaires with no mortgages or who locked in when rates were around 2.75%.

I locked in at 2.5%

 

[BabyBoomer50s]

No, it's not.

There’s variability among different markets within the US but where most people live, its much cheaper to rent. Lots of Gen Z and millennials with dreams of buying a house have come to that realization.

“It now costs 52% more to buy a home compared with renting an apartment, according to CBRE data emailed to CBS MoneyWatch, which analyzed the monthly cost of a new home purchase versus a new lease from 1996 through the third quarter of 2023.

“On a dollar basis, that means new homeowners today face monthly costs of $3,322, versus $2,184 for people who sign new leases.“

https://www.cbsnews.com/news/home-buying-renting-52-percent-more-expensive-to-buy-cbre/

 

[Rotadom]

There’s variability among different markets within the US

Right, your ignorant blanket statement was wrong. The biggest problem is lenders wanting what young prospective homeowners don't have.

 

[RoryN]

Can’t blame them. It’s cheaper to rent than own these days. Someone trying to buy a decent median priced house in places like the Bay Area is looking at monthly mortgage payments of well over $5K. That doesn’t even include the property tax bill which would be at least $1,200 per month on the low end.

Thanks for taking the time and care to respond with accurate information...that the rest of us have known for at least a decade.

 

[Rotadom]

Thanks for taking the time and care to respond with accurate information...that the rest of us have known for at least a decade.

Hush, you! He said something.

 

[__Nathan1968]

So this proposal would impose a fee of between $900 and $3,600 for sales of homes that are double the current median price of $590k. Seems reasonable to me.

Actually, the fact that they suggest applying the higher value of $1 mil or the county’s median value seems unreasonable. Rich people who live near other rich people get a lower assessment.

 

[Sean Renaud]

You guys mean multimillionaires. In any real city if you own you're home you're at least halfway to being a millionaire right there. Being a millionaire doesn't mean you make that much a year, it means you're worth that much. Which is why Bezos and Musk used to bounce back and forth cus it really came down to how well one stock did this year or someone opened a luxury motel near a city where they owned yadda yadda.

 

[Fuzzy1975]

I paid double digit rates in the 80s. It sucked. 8% sucks less, but try explaining that to a young family trying to buy a decent house today.

So what do you expect for a mortgage rate? 0%? Don't use a mortgage rate as a disincentive towards taxation. Which is what you're trying to show with your link.

 

[BabyBoomer50s]

Right, your ignorant blanket statement was wrong. The biggest problem is lenders wanting what young prospective homeowners don't have.

The blanket statement was published by CBRE and it is accurate. Mortgage rates are high.

 

[HisArpy]

There’s variability among different markets within the US but where most people live, its much cheaper to rent. Lots of Gen Z and millennials with dreams of buying a house have come to that realization.

“It now costs 52% more to buy a home compared with renting an apartment, according to CBRE data emailed to CBS MoneyWatch, which analyzed the monthly cost of a new home purchase versus a new lease from 1996 through the third quarter of 2023.

“On a dollar basis, that means new homeowners today face monthly costs of $3,322, versus $2,184 for people who sign new leases.“

https://www.cbsnews.com/news/home-buying-renting-52-percent-more-expensive-to-buy-cbre/

Rents will be increasing to change this.

Renting almost always costs more than buying. The difference is whether you have the price of admission to home ownership or not. If you don't, and choose to spend your money on dumb stuff instead of saving it for a down pmt, that's on you and not your landlord or the rest of society which can manage to do it.

 

[BabyBoomer50s]

Thanks for taking the time and care to respond with accurate information...that the rest of us have known for at least a decade.

Actually at least one board member didn’t know that and you’re welcome.

 

[BabyBoomer50s]

So what do you expect for a mortgage rate? 0%? Don't use a mortgage rate as a disincentive towards taxation. Which is what you're trying to show with your link.

Fortunately I’m not shopping for a mortgage but if I was I’d prefer as low a rate as possible. Monthly mortgage payments of $5K or more would tough for any homeowner, especially Gen Zers just starting out.