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Economy stimulation idea

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posted on May, 4 2014 @ 06:50 AM
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I have been thinking of the things that seemed to crumble right in front of me when the economy collapsed. Real estate was the very first thing that came to mind. You can still see many more houses for sale than buyers.

What if:

The government took Capital gains taxes away for 6 months on all real estate transactions? Sure all the rich folks would snap up any and all available property, But once the surplus is gone, building could get back to where it should be, (not necessarily where it was) And the trickle down effect of all the jobs associated with the building industry would perk up a large sector of the middle class that is pissing in the wind at the moment.

What do you think?




posted on May, 4 2014 @ 07:19 AM
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a reply to: network dude

I thought capital gains tax was paid by a seller? Or are things different there?

Providing a six month window for the lucky few to flood the market with expensive properties wouldn't help me thinks, and even if your idea was put into practice, the government would squeeze their loss from something else....something that everyday people would have to subsidise probably.

Must be a better way, like teaching people how to live within their means.



posted on May, 4 2014 @ 07:22 AM
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a reply to: network dude

It won't work. We are living in the result of a broken economy that was being carried for nearly a decade on the housing market. You have to address our trade imbalances and get corporate reinvestment into the economy done first or you will just recreate the conditions that caused the crash to begin with. Building more houses that we don't actually need and that most people can't afford isn't going to fix the economy.
edit on 4-5-2014 by KeliOnyx because: (no reason given)



posted on May, 4 2014 @ 08:24 AM
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a reply to: network dude

Why does the solution have to include yet another windfall for those who are already wealthy?

What if.... instead of giving the rich another tax break to the tune of 20% just to get them to buy something they don't need and doing nothing to improve accessibility or increase the demand for housing, we just offer those houses to military vets and active duty personnel with interest free loans?

Not only is it the least we could do for our vets, it would actually put families into those homes and increase demand. From a taxpayer point of view, I'll bet it would be cheaper too.



posted on May, 4 2014 @ 02:02 PM
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originally posted by: Flatfish
What if.... instead of giving the rich another tax break to the tune of 20% just to get them to buy something they don't need and doing nothing to improve accessibility or increase the demand for housing, we just offer those houses to military vets and active duty personnel with interest free loans?


While I am all for taking care of our veterans the reason the housing market is stagnant is because the interest rates are so low. When they start to climb real estate becomes a much more valuable commodity and the raising rates compels people to get in before they think they missed their shot. There is too much cheap money going around because of how the Federal Reserve has been purposely holding down interest rates.




edit on 4-5-2014 by AugustusMasonicus because: networkdude has no beer



posted on May, 9 2014 @ 06:43 PM
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a reply to: AugustusMasonicus
I disagree. I think the reason it is so stagnant, is because rent to the government, AKA property taxes is way too high. I am speaking from a NY perspective, but if you did the math, property taxes there was higher than the mortgage was, no joke. And that was in the country, I imagine it is much worse in the concrete jungles. I didn't have a mcmansion or anything, just a regular old raised ranch house. Property wasn't huge either, less than what I have now, and I paid more per month back in NY, than I do per year here.



posted on May, 10 2014 @ 12:17 PM
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originally posted by: TKDRL
I disagree. I think the reason it is so stagnant, is because rent to the government, AKA property taxes is way too high. I am speaking from a NY perspective...


That may be true in you circumstance (and mine as well) but a good portion of the country has lower rates than us and the market is still stagnant. Easy money cause the housing market to create a surplus, once rates begin to climb steadily people will get into the market because the rationale is they do not want to be on the outside looking in.

It is simple supply and demand. The money supply is high and therefore there is no demand. Tighten up currency and people move to real estate.




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