What would happen if hood areas suddenly increased in home values?

[Klyk21]

Like I'm talking about a home worth 60-70k suddenly increasing in value to like 300k in over a period of a year or less...

Like, real world events, what would be the first thing to happen in your opinion? Looking now for a new place to live and I'm seeing all the black areas are much cheaper than the diverse/white areas of town (except for downtown atl)

 

[Kokoro]

Gentrification?

 

[Cynic]

Like I'm talking about a home worth 60-70k suddenly increasing in value to like 300k in over a period of a year or less...

Like, real world events, what would be the first thing to happen in your opinion? Looking now for a new place to live and I'm seeing all the black areas are much cheaper than the diverse/white areas of town (except for downtown atl)

You need to understand how real estate works... residential is based on market comps

So what event would suddenly have property values skyrocketting in one year ?
A new campus ? A manufacturing facility ? eitherway it will become rife with speculators
with more money than sense and inevitably....


Poor black people will get moved out when owners sell up and suffer from rental increases
to get meet landlord mortgage payments.

 

[tru_m.a.c]

Only way this happens is through a tremendous increase in worker pay.

Check the threads on San Francisco

 

[88m3]

Only way this happens is through a tremendous increase in worker pay.

Check the threads on San Francisco

qu and bk would like a kind word with you, sir

 

[Vandelay]

Like they are now, in multiple cities across the country?

Someone buys a gutted house in an up and coming neighborhood, goes to home depot grabs some sheet rock, sea foam colored interior paint, laminate flooring, and a couple skylights and suddenly the value of the house tripled despite doing nothing for the foundation.

 

[Klyk21]

Gentrification?

With black people STAYING in their areas..not being bought out or kicked out. Im talking like if compton cali homes just all skyrocketed up overnight....as well as all the hood areas around the nation. Hypothetical

 

[hashmander]

With black people STAYING in their areas..not being bought out or kicked out. Im talking like if compton cali homes just all skyrocketed up overnight....as well as all the hood areas around the nation. Hypothetical

the black owners would sell quickly and it would get gentrify that way to go along with landlords who will increase rents. most of them are only staying in their homes because it's paid off and selling it won't result in much money, so moving would be a financial burden. basically the "good" neighbors will be the first to go because they can't stand most of their other neighbors who don't have respect for the neighborhood and let it get run down. in most cases it's too many landlords in the neighborhood and not enough owner occupied.

there are all sorts of dynamics at play in neighborhoods. it's not simply about increasing home values and then suddenly the neighborhood will become better. if there are a majority of renters in a poor neighborhood the actual people who own the homes they live in will get disgusted because a renter doesn't have any incentive to keep the house and property in good shape and the landlord doesn't give a shyt either because as long as he can do the bare minimum to avoid code enforcement citations and the renters aren't destroying the inside of the house they're good. an owner occupied property is invested in it and doesn't want to see property values decline (or not increase at a similar rate as other neighborhoods in their city) because you're fukking with their money now.

 

[Scoop]

With black people STAYING in their areas..not being bought out or kicked out. Im talking like if compton cali homes just all skyrocketed up overnight....as well as all the hood areas around the nation. Hypothetical

Many times gentrification happens because property taxes get too high. Not because the old residents are kicked/bought out.

 

[hashmander]

property taxes rise with property value. so i want you to show me a property tax bill that's say $4k for a house that's valued at $100k. btw the property tax rate for los angeles county is 0.793%

so if you're in nyc and the value of your home went up so much that your property tax bill is way too high for you to afford then that's the market telling you to sell up and move somewhere else.

 

[SchrodingersStrapped!]

Gentrification, the people who live there won't be able to afford living there

 

[Brown_Pride]

You need to understand how real estate works... residential is based on market comps

So what event would suddenly have property values skyrocketting in one year ?
A new campus ? A manufacturing facility ? eitherway it will become rife with speculators
with more money than sense and inevitably....


Poor black people will get moved out when owners sell up and suffer from rental increases
to get meet landlord mortgage payments.

inflation lol

 

[wheywhey]

With black people STAYING in their areas..not being bought out or kicked out. Im talking like if compton cali homes just all skyrocketed up overnight....as well as all the hood areas around the nation. Hypothetical

Your hypothetical situation happened 10 years ago with the real estate bubble. Homes in black neighborhoods were overvalued. If you were breathing, you got a loan. Incomes weren't being verified and no down payments were required. The loans started off with low teaser rates or interest only for the first two years to keep the payments low. People thought they would be able to refinance or sell the house for a profit in two years but that didn't happen because too many people were getting foreclosed on and prices were quickly dropping.

FYI: Compton is no longer majority black, it is 65 percent Hispanic.

2008 video on Atlanta's foreclosure problem.

 

[Domingo Halliburton]

A bubble.

 

[Deutsche Bank]

By the time blacks catch on and begin to participate in the manipulation of a bubble, that shyt is about to burst. From flipping houses, to tech start-ups, the nikka is the true Black Swan economic indicator. And that's just pure economics.

The group with the lowest wealth is holding the lightest bag for a reason, so once credit is extended to the least financially qualified to engage in certain economic activity, that's a signal of a bubble getting it's last gasps of inflation.