Housing market

[jonnyfrank]

So, does anyone want to weigh in on the residential housing market? I live in north Texas where the market is red hot and I know my house is not worth what it is currently worth. What do you all think of houses as a hedge against inflation considering the supply chain issues?

[LoriPrecisely]

So, does anyone want to weigh in on the residential housing market? I live in north Texas where the market is red hot and I know my house is not worth what it is currently worth. What do you all think of houses as a hedge against inflation considering the supply chain issues?

I have always done well with real estate. People will always need a place to live. Texas has seen an influx of people from the north and the west and the south. Forbes lists Texas as the number one state people are moving to. https://www.forbes.com/home-improvement ... e-to-from/
If you look at Fundrise website, they are financing housing developments all over, including Texas, of entire neighborhoods that will be for rentals only, not purchases.

[harryg]

I can only speak about the UK which has a peculiar housing market and and a very dense population compared with North America.

Residential houses are a very good hedge against inflation, certainly as good as any other. Plus you can live in it.

Anyone in the UK who didn't buy a house 40/30/20/10 years ago because it was too expensive will find it very difficult if not impossible to catch up.

[Yodean]

I can only speak about the UK which has a peculiar housing market and and a very dense population compared with North America.

Residential houses are a very good hedge against inflation, certainly as good as any other. Plus you can live in it.

Anyone in the UK who didn't buy a house 40/30/20/10 years ago because it was too expensive will find it very difficult if not impossible to catch up.

Hmmm, this got me thinking a bit ... what's the average property tax, in percentage terms, of residential real estate in the UK?

[harryg]

When you purchase you pay Stamp Duty. This is a big earner for the govt especially since they upped it for non-residents & second homes.
https://www.gov.uk/stamp-duty-land-tax/ ... erty-rates

Annually you pay Council Tax. Range about 1000-4000 depending on the price the property was in the past and on the location (municipality).
https://www.gov.uk/council-tax

To answer your question specifically, you would divide that by the price paid. Maybe 0.5% ish ? Proportionally less for expensive properties. The tax is not directly linked to the current price/value of the property, but it does of course go up every year

They don't like people purchasing properties as investments and leaving them empty, so they increase Council Tax quite a lot if you do that.

[SOL]

[Yodean]

https://twitter.com/i/status/1494416491604701195