A developer has to make up that money and it removes a portion of the available real estate from the free market and more deserving buyers. It drives up the price for everyone thus forcing other buyers out of an open market position to buy with a system that can never react as efficiently and accurately as the open market all to ensure someone is guaranteed a position in a community which they didn't earn for no good economic or societal benefit.
Home buying thread
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Asshat wormie
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Why are you assuming the developer is losing money that he than has to "make up"? Are you saying that the developer cant estimate how many houses they can sell in a given area and then design the project to build just enough to be able to sell most (if not all) houses + the affordable housing shit?. Also, since the developer doesnt lose any money on the affordable housing as the county must pay them at least the cost of the development of each affordable unit, what loses is he passing onto the other consumers? Furthermore, "driving up prices"notion. Prices are set at levels that the market can bear, not at some arbitrary point the seller randomly decides to set them to and if you believe that the prices arent already near or at the ceiling of what the market can bear, i have a few bridges to sell you.
As far as societal benefits, how about increase in purchasing power of the people receiving these houses from the increased disposable income?
Having said all this, I just want to reiterate that my original point was an argument against people claiming that these are 400k properties being sold at 180k and I am really glad you arent traveling down that retarded road.
The societal benefit of inceased purchasing power by a single lower income tenant as opposed to that lost by all open market buyers who got in a bidding war? You seem to think this program is magic.
Asshat wormie
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Why are you assuming there is a housing shortage that leads people to get into a bidding war ?
It's only saving grace may be when the income disparity is so large the upkeep and improvement of the subsidized tenant will make the area less desirable, the people with money move somewhere else, and all units become affordable. Rinse repeat until the end of time with added fraud, paperwork, and of course wasted man hours of however many people it takes to handle it.
If there's not, then why can a developer sell something that costs 1 year to build for 3 times his original investment and why aren't the Beverly fucking hillbillies you're trying to shoehorn already housed?
Asshat wormie
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You are making a mistake similar to khane here in assuming that the affordable houses and the regular houses are the same. Just because the affordable houses are averaging 150-160k, doesnt mean the regular houses there cost the same amount ot build and thus the builder is selling them for 3x the costs.
Khane
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Wormie, the cost of housing in that area is proof positive there is a housing shortage in that area. The fact they need to subsidize the property value so people who otherwise wouldn't be able to can afford to own a home also is. You seem to think there isn't a subsidization occurring here. As if these builders are donating housing for the cost of materials out of the goodness of their hearts.
They are built for less because the cost of building them is subsidized. Subsidized materials, tax incentives, whatever it may be, that money is coming from somewhere.
They are built for less because the cost of building them is subsidized. Subsidized materials, tax incentives, whatever it may be, that money is coming from somewhere.
Asshat wormie
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They are not mandating that these units are shitty but do you really think that the builders build nice houses that they can't sell for any profit?
Asshat wormie
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The cost is not subsidized. The county controls the costs and then buys the houses from builders for that cost. Read the damn law.
Khane
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Asshat wormie
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Of course there is. Are you saying hiring a number of officials to oversee that builders comply with the laws is a housing subsidy?
Asshat wormie
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I have been trying to get financials on that but all i found are their operating expenses for 2012/2013:
$336,808
https://va-loudouncounty.civicplus.c...1424554943.pdf
$336,808
https://va-loudouncounty.civicplus.c...1424554943.pdf
Asshat wormie
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LiquidDeath
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This part:
Stating that only people in financial duress own single family homes to rent out is asinine. It is even more asinine to state that they almost never pay off. If it never paid off, no one would own rent houses. I own a rent house that is a great investment, as do quite a few other people I know.
Khane
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Most property investors literally do not purchase single family homes as rental properties. They are not as lucrative as multi-unit homes and multi-unit homes are more insulated from external market factors. There is also a much smaller market of people looking to rent single family homes in the majority of the continental US. The exception to this being in places that got killed during the housing crisis. Phoenix, Las Vegas, Florida, etc. When you see a single family home up for rent a large majority of the time it will be because of the two factors I mentioned.
Please note I never said "only people in financial duress". I said "most real estate investors aren't buying single family homes as an investment property for renting." Which means most investors who buy single family homes do so to flip for a profit.
We can play the causation = correlation anecdotal evidence game all day though since I own a duplex.
Please note I never said "only people in financial duress". I said "most real estate investors aren't buying single family homes as an investment property for renting." Which means most investors who buy single family homes do so to flip for a profit.
We can play the causation = correlation anecdotal evidence game all day though since I own a duplex.