Cali Wants To Raise Home Prices

[gatomontes99]

LOS ANGELES (KABC) -- A California proposal could make undocumented migrants eligible for up to $150,000 in state-supported home loans.

The measure, AB 1840, is expected to pass the state legislature this week. It would expand the state's California Dream for All Program to allow undocumented migrants living in the state to use it.

Liberals don't understand that supply/demand drive prices. So they don't understand that when you give $150k to buyers, the price goes up by $150k.

 

Edited August 28, 2024 by gatomontes99

[Hodad]

2 hours ago, gatomontes99 said:

LOS ANGELES (KABC) -- A California proposal could make undocumented migrants eligible for up to $150,000 in state-supported home loans.

The measure, AB 1840, is expected to pass the state legislature this week. It would expand the state's California Dream for All Program to allow undocumented migrants living in the state to use it.

Liberals don't understand that supply/demand drive prices. So they don't understand that when you give $150k to buyers, the price goes up by $150k.

 

The wisdom of this proposal aside, your "math" is off.

It's not a gift, it's a secondary loan for down payment assistance and closing costs for people who already qualify for a home loan (financially stable, tax-paying folks contributing to the economy). The loan is repaid to the state as well as a share of the increased value when the home is sold. 

And it could add a relatively small number of plausible buyers into the market (adding demand) to increase prices slightly, it's not even in the same galaxy as a 1:1 price increase. For reference, in a state of over 39 million people, 1,700 of these loans have been issued -- total count for the program, none to undocumented, of course. So adding undocumented folks who are already positioned to afford a home in California means we're talking a very tiny drop in the bucket. 

Edited August 28, 2024 by Hodad

[gatomontes99]

34 minutes ago, Hodad said:

The wisdom of this proposal aside, your "math" is off.

It's not a gift, it's a secondary loan for down payment assistance and closing costs for people who already qualify for a home loan (financially stable, tax-paying folks contributing to the economy). The loan is repaid to the state as well as a share of the increased value when the home is sold. 

And it could add a relatively small number of plausible buyers into the market (adding demand) to increase prices slightly, it's not even in the same galaxy as a 1:1 price increase. For reference, in a state of over 39 million people, 1,700 of these loans have been issued -- total count for the program, none to undocumented, of course. So adding undocumented folks who are already positioned to afford a home in California means we're talking a very tiny drop in the bucket. 

It isn't repaid to the state if the home is never sold.

[Rebound]

16 minutes ago, gatomontes99 said:

It isn't repaid to the state if the home is never sold.

As Hodad pointed out, this loan program is minuscule.  In California, there are undocumented immigrants who are 50 years old, who’ve lived in California since they were two years old, who have been working and paying taxes for decades.  They aren’t  plucking people out of the Rio Grande and handing them $150,000. 

Edited August 28, 2024 by Rebound

[Deluge]

3 hours ago, gatomontes99 said:

LOS ANGELES (KABC) -- A California proposal could make undocumented migrants eligible for up to $150,000 in state-supported home loans.

The measure, AB 1840, is expected to pass the state legislature this week. It would expand the state's California Dream for All Program to allow undocumented migrants living in the state to use it.

Liberals don't understand that supply/demand drive prices. So they don't understand that when you give $150k to buyers, the price goes up by $150k.

 

All liberals understand is Marxism. It really is the end goal for these psychopaths. 

[Hodad]

Just now, gatomontes99 said:

It isn't repaid to the state if the home is never sold.

Have you ever heard of a home that is never sold? 

[User]

 

1 hour ago, Hodad said:

It's not a gift, it's a secondary loan for down payment assistance and closing costs for people who already qualify for a home loan (financially stable, tax-paying folks contributing to the economy). The loan is repaid to the state as well as a share of the increased value when the home is sold. 

Do you even bother to think about what you write?

If you need downpayment assistance and help with a loan, you do not qualify for a home loan. If you qualify for a home loan, that means you already have those things. 

If you are a financially stable person, that means you are able to save money for a home loan and should have money to cover closing costs. 

I mean, what could go wrong with the state backing loans... it is almost like we learned nothing from 2007/2008. 

[robosmith]

2 hours ago, gatomontes99 said:

It isn't repaid to the state if the home is never sold.

Loan repayments are continual starting on day one. Where do you get your mortgage that they're not? LMAO

1 hour ago, Deluge said:

All liberals understand is Marxism. It really is the end goal for these psychopaths. 

All you "understand" is BULLSHIT.

[User]

8 minutes ago, robosmith said:

All you "understand" is BULLSHIT.

All you understand is running and hiding from someone who calls out your BS. 

[Deluge]

8 minutes ago, robosmith said:

All you "understand" is BULLSHIT.

No, that's you. 

But at least we both understand that you're a closet Marxist.  

[User]

1 hour ago, Hodad said:

Have you ever heard of a home that is never sold? 

Yes, have you never seen the neighborhoods in Detroit and other places that are completely abandoned?

Even then, it might sell... but at what price? When these people get evicted for failure to pay and they destroy the home on the way out, you think they will get back their investment or be able to sell it at what it used to be worth?

 

[gatomontes99]

3 hours ago, Hodad said:

Have you ever heard of a home that is never sold? 

It happens a lot in Cali. The taxes are frozen if the home isn't sold. So they either leave it to family when they die or they turn it into a rental when they move because it is a huge financial advantage to not sell.

[gatomontes99]

1 hour ago, robosmith said:

Loan repayments are continual starting on day one. Where do you get your mortgage that they're not? LMAO

All you "understand" is BULLSHIT.

Read the summary. They don't pay a dollar until they sell the home. Even then it is 0% interest.

[Hodad]

3 hours ago, gatomontes99 said:

It happens a lot in Cali. The taxes are frozen if the home isn't sold. So they either leave it to family when they die or they turn it into a rental when they move because it is a huge financial advantage to not sell.

Looks like it must also be repaid upon transfer-- along with 20%(or so) of the value increase. Which is interesting. Functionally this would prevent most cases of leaving it to a family member without big cash back to the state. In practical terms it would likely require refinancing, which again triggers the increased value repayment, which is then rolled into a new mortgage with an equity position to eliminate the need for cash.

At any rate, in a real estate market like California, recouping the loan value + 20% of the appreciation of a home held for any significant period of time would be a great deal for the state. Essentially self funding the program. 

 

I think one could make an argument that it should only be open to citizens. But there's also a compelling argument to be made that any taxpayer should be eligible. 

[User]

3 hours ago, Hodad said:

At any rate, in a real estate market like California, recouping the loan value + 20% of the appreciation of a home held for any significant period of time would be a great deal for the state. Essentially self funding the program. 

I always love these comical takes... if it were such a great deal, the private industry would be doing it.