Comment on This boomer couple would be hit with $700,000 tax bill if they sold their mansion
Soup@lemmy.world 2 weeks agoAnd how much have wages gone up? $500k is still very expensive, sounds like maybe it should be a little more but it sounds more like a consequence of letting housing prices run away for a few decades.
Delphia@lemmy.world 2 weeks ago
Either you shouldnt be paying any capital gains on a primary residence full stop or it should be on a sliding rate over time. (20% for first year -1% per year after)
Buying a house (even a mcmansion) and living in it for 30 years isnt a hustle or an investment strategy… its just living.
deathbird@mander.xyz 2 weeks ago
That’s… actually an interesting way to slow down flippers.
Soup@lemmy.world 2 weeks ago
Plenty of folks are relying on the sale of their homes to pay for retirement, this couple in question is even an example of that. The big issue there is that it requires home prices to just climb and climb because they have to outpace each other(a sale of a home for this purpose will also need to buy the next home). The value of the home goes up with inflation but it also gets an additional increase because now it’s expected to help pay for 15-30 years of retirement, and the cheaper houses see the price range vacuum and seek to fill it not only because of greed but also because its sale will probably be used to buy the bigger, now even more expensive home. It’s shelter and we treat it like a luxury good.
Every time the price is referenced it’s used as excuse to raise prices elsewhere. It’s a feedback loop of greed fueled by the lack of a safety net and a lack of protections for both homeowners and renters. In Canada and the US things are extra bad because the demand in good cities is high but a lot of the existing housing, and even the new stuff, is production homes in “neighbourhoods” that are isolated, car-centric deserts and it’s still expensive.