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discntnt_irny_srcsm

(18,615 posts)
12. The simple fact is that our entire economy is based on debt
Thu Nov 3, 2016, 07:34 AM
Nov 2016

The government is working to keep it that way and expand it. Tax money could easily be used to build affordable housing but then there would be a drop in average housing prices due to the reduced demand and no mortgages to profit the bankers. The government secured loans backed by FHA (and other programs) generate revenue, government jobs and ensure that the mortgage market continues to grow.

In most states hotels/motels are taxed heavily often close to or at 15%. There is time period after which the facility is treated as a residence and the tax is no charged. In areas (large cities like Los Angeles county) where many are homeless or close to it there is also the problem that once you establish residence, the courts become involved in removing those who don't/won't/can't pay. Hotels and motels often won't let you stay to establish residence, at least not "officially". The time to establish residence is between 30 and 90 days. Often these places have rooms that are 400 - 600 sq. ft. and have 2 queen size beds. They're furnished, include utilities and have housekeeping service.

There ought to be a program finance these places followed by a transition to an even lower priced more residential place.

The American dream is a 3-4 bedroom 2+ bath house. Those that have them are paying dearly for them in both sales price and mortgage interest. Once housing become affordable, many folks with mortgages find themselves with homes worth less than they paid.

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