More Evidence of Housing Speculation
"The National Association of Realtors, a trade organization that represents real estate brokers, said in a study being released on Tuesday that the percentage of homes bought for investment might be as high as one-quarter of the 7.7 million sold last year."
My take is the numbers in these reports are grossly underestimating the number of loans taken out for flipping purposes. People claim owner occupied to get lower rates and points. There is no way to track this activity.
Like I've said before, we should implement a 75% capital gains tax on the sale of property prior to 2 or 3 years of ownership (without hardship). That would discourage these fatcats and greedy speculators from screwing it up for the rest of us.
See full text at: Calculated Risk
My take is the numbers in these reports are grossly underestimating the number of loans taken out for flipping purposes. People claim owner occupied to get lower rates and points. There is no way to track this activity.
Like I've said before, we should implement a 75% capital gains tax on the sale of property prior to 2 or 3 years of ownership (without hardship). That would discourage these fatcats and greedy speculators from screwing it up for the rest of us.
See full text at: Calculated Risk
Comments
Risk of loss is the best incentive not to speculate in a house. Home prices have been stable to higher so the crowd views the leverage in home loans as a positive. That will not always be the case.