Friday, July 13, 2012

10% House Tax

So with a realtor commission and the new sales tax courtesy of Obama, you're paying essentially a 10% sales tax on housing.

Just wanted to make sure we're clear on this and when housing prices never recover or you're "shocked" you had to pay this tax when you sold your home (because you voted for this idiot), there is no complaining.

You get the government you deserve.


CBMTTek said...

Sounds like a real incentive to keep my AGI well below $250K.

Talk about an incentive to avoid production.

Enjoy the decline. to the radio said...

Houses have always been too expensive.
It's a racket.
I rent and enjoy it.
When I got laid off last year I gave my landlord notice and was gone within a month.
Friends I worked with were not so lucky.
They are still in that shit hole town trying to find some way to work for the bank.
I moved back to my hometown, got a great job and rented a house.
With a wife and two kids, it ain't minimalism but it is mobility.
I can't see myself being shackled to a house unless I can buy it with cash.

Turling said...

Don't bring up damn realtor commissions. Sold our house six years ago and the Realtor got 6% (yea, but we split it with the other realtor...whatever), that was $38,340. House went on the market on a Monday. Sold Tuesday night. 16 hours of "work". That works out to $500,800 annually. And, no, of course I'm still not bitter.

Cogitans Iuvenis said...

Well I could see larger corporations working out some sort of loophole. But if the haven't this could have another unforeseen outcome. Having worked in commercial real estate development for a few years, commercial residential and office projects, I was surprised to find out that a lot of retirement and insurance funds invest in 'corporate' real estate.

For many of those companies commercial real estate investment is a viable option because of its returns while having a hard asset that can be held in case it goes under. I can certainly see how this tax could possibly result in less real estate investment by those funds, which could have unfortunate ramifications. Unfortunately the American polity never tries to see the tertiary after affects of any government action.