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Started by Mobius, March 08, 2019, 10:06:44 AM
Quote from: Young And The Invested on March 09, 2019, 03:51:09 AMI saw that yesterday and wondered if this would still be the case after tax reform. Home ownership in high-tax/high cost-of-living areas has only gotten more expensive since the tax code changes. I wonder how much of the new IPO money coming out will be put into real estate in the crowded SF market or if people will take their millions and run.I did research in graduate school on Pennsylvania dairy farmers who received millions of dollars in oil and gas royalties for allowing companies to drill on their farm land. While there's a clear environmental component to this research, we found once farmers earned a certain amount of money from their bonus payments, many opted to sell their land and get out of the area. They didn't choose to buy more farm land or reinvest in their businesses.Our conclusion was that millionaires don't milk cows. It will be interesting to see how these newly-minted millionaires react with their windfalls. I know I'm keenly following that market.
Quote from: Money Ronin on March 10, 2019, 09:53:11 PM If anything, of the variables I mentioned, higher mortgage interest rates would have a greater impact on the housing market.