MrRodgers
Posts: 10542
Joined: 7/30/2005 Status: offline
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quote:
ORIGINAL: servantforuse Developers will only build houses that people want to buy. Nothing is greedy about that. Not to mention the thousands of people that were employed building these properties. There are many men and women in the 'trades' that can't wait for thins to turn around and start building again. First. govt. puts in sewer/water/roads. The dev. puts up a few thousand per lot. built into price. The hook up is charged to the buyer. (normally) Second, local govts. wanted retail and industrial over residential, but for retail, the rooftops must come first. Once that is given the greatest density normally including towns and apts. means all of that county expense to help support the retail where our prices are directly effected by the 'retail rent and taxes they have to pay. There was support for these expensive homes because of their tax value. They had to add as much additional density as practical all for more support and they are as expensive to operate, more to insure by the foot and with rising taxes...yet they sold and counties became flush. Speculation in price land owners and builders drove tax receipts even higher. What developers build are an agreement in a mix of densities and the affordability is subject to the same mortgage qualifying and govt. mortgage buying ratios. So when the fed enterprises continued to raise the FHA, VA insurance and mortgage warehousing buys them up, then are both working outside the market to inflate the price of the houses along with mortgage buying and insurance. As it stands no, the FHA has no business insuring anything like a $700,000+ mortgage. I wonder why they do that ? Got any ideas ? Think maybe the plutocracy found any better ticket to making millions ? Blame the whole culture, the land speculators, the rising tax receipts, rising govt. insurance all for rising profits. That's what happens when housing is essentially removed from the free market and most convincingly...NOT in the hands of just the buyers. Even the condos were $300,000 + when there simply was no market except who...speculators.
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