tag:blogger.com,1999:blog-1592992209402300549.post2174420700640323254..comments2024-03-28T08:06:43.198-04:00Comments on The Silicon Graybeard: Will Private Property Disappear in Our Lifetimes?SiGraybeardhttp://www.blogger.com/profile/00280583031339062059noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-1592992209402300549.post-78265464493064185712017-02-16T03:54:39.804-05:002017-02-16T03:54:39.804-05:00I shared a 12 y.o. house that the original owner (...I shared a 12 y.o. house that the original owner (ww2 vet) bought in 1965, for $13,500 in Sunnyvale, CA. It was a cheap copy of an Eichler design. Stylish POS. <br />At the same time, he bought a Marantz console stereo system (Rolls Royce speakers!), for $1500. <br /><br />In '85, he sold the house for $550,000. Two years later, an identical house a few doors down sold for $750k. Bear in mind, this was the middle of Silicon Valley, which didn't exist in '65.<br /><br />Traditionally, houses increased in cost due to growth of the community, which made the location more desirable. The second reason is due to inflation.<br /> <br />Your stated reasons are not big factors in driving costs. "better building standards"-HAH! You have obviously never looked at the construction of homes prior to WW2. Since the end of that war, housing has been as cheaply built as they can be. It gets worse all the time. Nowadays, illegal Mexicans are the major labor for them, and it doesn't come any cheaper than that. Talk about junk.Willhttps://www.blogger.com/profile/00722792638246578812noreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-81926563723948392422017-02-13T11:03:33.801-05:002017-02-13T11:03:33.801-05:00Well that is simply not accurate. The problem you...Well that is simply not accurate. The problem you have encountered is I am old enough to have bought a home in 1965 and the cost was more then three times $6500 and it was a "cheap" or low cost starter home. My father bought a "cheap" home in 1943 and it cost him $8500. <br /><br />Your point though is that the cost of homes has risen faster than wages and that is true. But there are many reasons for this, better building standards, bureaucratic red tape, more value/profit in high end homes, etc. The same thing could be said for cars but both cars and new homes are selling well and people want them. I fail to see how the increases in price has really hurt anyone. People who can afford homes are happy with them. I myself have bought and sold many homes and made a nice profit on each of them. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-45709870678868000492017-02-13T06:40:48.024-05:002017-02-13T06:40:48.024-05:00You forget about supply and demand. The reason why...You forget about supply and demand. The reason why houses can only be paid with mortgages is exactly because mortgages exist. The same for college loans and college education.<br /><br />There is a lot of money chasing a few resources. In 1965, the average annual wage was $6500, and the average cost of a new home was $13,500. About two years' wages. In 1975, a new home cost 4 years' wages. By 2015, a new home cost 5 and a half years' wages.Divemedichttps://www.blogger.com/profile/14583007051962299381noreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-80504524799717820682017-02-12T19:00:58.826-05:002017-02-12T19:00:58.826-05:00There isn't a perfect system. Many folks want...There isn't a perfect system. Many folks want to go back to a gold standard but there isn't that much gold around to do it. I worked when our population was under 50 million people and we didn't trade much with other nations. It won't work now. <br />Owning a home for most people is only possible because of mortgages. The fact that you "rent" it from the bank seems like a small price to pay for the benefit you get. Who would prefer the alternative of saving for 30 years before you could own a home?<br />Property taxes can potentially be a problem but it is a good news/bad news problem. Typically high property taxes mean high home value and you always have the option to sell it and move to a lower cost of living area. My major complaint with property taxes is simply that some property gets to avoid it and some don't. IMHO everyone/every property should pay the same tax.<br /><br />As for the interest rates that is a problem. Not because your CD doesn't make you any money but because it is a huge red flag. The reason we have close to zero interest rate now and have had for 8 years is because we are in deep shit and essentially bankrupt. But technically you aren't bankrupt until you admit it or someone else forces it. That's where our country stands today. We are bankrupt waiting for the crash. If you don't have PMs buy them now. If you do have PMs keep your powder dry it's coming... Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-16312336014625741202017-02-12T10:13:21.335-05:002017-02-12T10:13:21.335-05:00It's awful. I did a piece a while back on wha...It's awful. I did a piece a while back on what's called Yield Purchasing Power - the purchasing power of the interest on your savings. Basically, in 1979 if someone wanted to earn 2/3 of the national median income in retirement, they had to save $100,000. That climbed to $100,000,000 in 2014. <br /><br />In 35 years, the YPP of a 3-month CD fell more than 1,000-fold.<br />SiGraybeardhttps://www.blogger.com/profile/00280583031339062059noreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-23281692816253943092017-02-12T02:43:14.959-05:002017-02-12T02:43:14.959-05:00Even if you think you have money they get you.
If ...Even if you think you have money they get you.<br />If you had invested $20,000 last year in a one year Certificate of Deposit at one of the major banks, you would have earned $15 in interest.<br />For an entire year.<br />On Twenty Thousand dollars.<br />I kid you not.Philhttps://www.blogger.com/profile/15695733883033137146noreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-76564503899576287062017-02-11T23:25:07.139-05:002017-02-11T23:25:07.139-05:00Reminds me of the real estate agent (actually a ve...Reminds me of the real estate agent (actually a very nice guy) who tried to get me to buy something I could afford free and clear. He said that it was safer, considering all that happened during the 2008 debacle. I reminded him that it was a simple matter for the state to take your "fully owned" property any time they wished by either raising taxes beyond what you could afford (as happened to many elderly fixed income homeowners in Seattle when Microsoft (etc.) caused property values - and subsequent taxes - to skyrocket., or through asset forfeiture, simply because some crime took place on your property, even if you were not involved in the crime.<br /><br />The folks in Seattle had to sell, because they couldn't afford the taxes, but values were high enough they were able to buy elsewhere (although they were forced to move out of the area, because of those same high prices). If a taxing agency decided to acquire your property, they could increase taxes beyond your ability (or willingness) to pay. You might be able to fight it in court, but the Deep State owns the judicial system these days (or so it appears), so you might get short shrift there.<br /><br />Finally, there is the whole "eminent domain" situation, where your property can be taken simply because the local governing agency can generate more money from selling that property to Pfizer or some other entity. You _might_ get "fair market value". Maybe. But it obviously isn't your property if it can be taken from you like that.Reg Thttps://www.blogger.com/profile/14099612693763932005noreply@blogger.com