Oh, this is going to end well.
When you sell the property or refinance the loan, they take up to 20% of the appreciation
Appreciation is actually currency devaluation. What Commiefornia wants to do is loan you 20% of your home's current value and then get it all back plus 20% of the total market value of the house.
This is a bet. Commiefornia is betting that there will be a continuing housing shortage, so prices will rise. This is also a hedge against inflation. Money not earning interest loses value. So they are, in effect taxing inflation.
Oh, this is going to end well.
>When you sell the property or refinance the loan, they take up to 20% of the appreciation
Appreciation is actually currency devaluation. What Commiefornia wants to do is loan you 20% of your home's current value and then get it all back plus 20% of the total market value of the house.
This is a bet. Commiefornia is betting that there will be a continuing housing shortage, so prices will rise. This is also a hedge against inflation. Money not earning interest loses value. So they are, in effect taxing inflation.
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