Dollars and Dunces

Economics and Eh

Today's currency market says the value of the Canadian dollar and the US Dollar are equal. When "Eh Day", the Monday after Canadian Thanksgiving Day, arrives so will many many Canadians who love Maui and find it even more appealing now that their dollar will go so much further than in the past. We can't grouse as we have had the advantage--monetarily--for a long time! Eh? Welcome Back!



Dunces and Voodoo Economics

Op Ed piece in today's Maui News written by a realtor/appraiser about affordable housing. He claims affordable housing developers are building isn't affordable to most locals. (Who shall determine who is local?)



The irony of this op ed is that realtors on Maui have played a key role in running up the price of affordable housing. How you ask? By buying up any new housing to come on the market before it is even built and then running the prices up for resale. I've heard of one broker who literally purchased every house in a new subdivision. But he's stuck with them now in this down market.

To get affordable housing the author of the op ed says the county has two options: 1) Set aside land for housing under the county's power of eminent domain. Hmmmmmm-The Courts have determined that Eminent Domain is a "taking". When this happens the Courts then determine by appraisal , calculating worth of the seized land based on its "highest and best use". In essence, the County would be paying market prices for the land they "take". So, we the taxpayers would be paying for land which the County would not recover costs, to build affordable housing. A whole new class of subsidies. Not to mention the additional taxes needed to cover this purchase.



His second point 2) require developers of high end properties to give up some land in their projects for affordable homes built by the County of Maui or some other non profit. Really?

Pardon my skepticism...but when has government ever done anything cheaper than the private sector? Once again, this idea is absolutely fraught with voodoo economics that will end up costing the taxpayers(property owners)big bucks.



Affordable housing isn't a new issue. It's been around for generations. Best advice--do what people have done for generations. Work hard, skrimp, save, have a dream and someday it will all come together and you'll own your own moneypit, errr home!