(06-02-2021 09:21 AM)MerseyOwl Wrote:  

(06-01-2021 04:45 PM)OptimisticOwl Wrote:  

(06-01-2021 04:21 PM)tanqtonic Wrote:  Apparently there is deep seated racism and discrimination in the appraisal process. Interesting.

Maybe it is that deep seated discrimination and racism in the appraisal process than is at the root in the crash of real estate in central Minneapolis.

If the purpose is to raise of the value and sale price of a house in a predominately black neighborhood, I wonder what kind of buyer is going to be willing to pay the higher price. I see some possible outcomes, none of which are good for the black community - lower volume of sales, so the homeowner has value on paper (wealth) but no buyers, and/or a dearth of white buyers, making the neighborhood even more segregated.

OTOH, my plan of giving tax breaks to anybody buying a house in a neighbor in which they are a 30% or less minority (includes white buyers in black/hispanic neighborhoods) would seem to encourage mixing of the races.

Well I'm just as confused as I can be....

At some point in the past the gentrification of older (minority) neighborhoods was viewed as a problem. Part of that problem, if I remember correctly, was to push up house prices. That in turn pushes up real estate taxes. And that pushes the incumbent residents out of homes that may have been in a family for generations.

Here in the UK real estate taxes are relatively low (but all other taxes are extremely high). In fact the lowest real estate taxes are to be found in London at around 1% and capped last year at £2098.88. Yes you can have a multimillion £ home and pay ridiculously low tax. Unfortunately I live in the extreme suburbs of London, about 250 miles out, and my home doesn't reach seven figures.

Back when I lived Stateside housing considerations were generally twofold: how safe is the neighborhood; and what is the quality of (public) education. So it seems if one were to implement broken windows theory and expand school choice then there would be a natural increase in real estate valuations?

What's missing from this equation is that although it can push up taxes and force people on fixed incomes out, it BY DEFINITION pushes up home valuations, which allows them to take equity out to:
- build generational wealth allowing them to stay
- Start a business allowing them to stay
- Create a second source of income that could fund the tax increases, allowing them to stay
- simply substitute property value for tax payments through a HELOC.... Where your home value goes up by 100,000 and the taxes by 8,000... so you borrow an additional 9k to fund it (and the increased payment) and stay in your home, and are still net 91k ahead.
etc etc etc
- although they could be 'forced out of their homes', they have equity to buy a home in another, quality neighborhood (just with different qualities)

The problem with this for politicians is that they don't like it when their constituents move out of their districts. IMO, it creates the same sort of segregation that the Civil Rights Act was designed to eliminate.

(06-02-2021 09:23 AM)OptimisticOwl Wrote:  Do you see this as helping the black community? That is what Biden is selling.

I see it as helping politicians.... likely at the expense of the black community, but with the ability to somehow blame Republicans