fools in line
in this morning's las vegas paper was a story about how many homes are up for sale here and how many of those were unoccupied since many of those were owned by "investors" who had bought the house expecting it's value to go up quickly but it did not. this is the end result of something i like to call, "the next fool in line" theory. here is how this little scam works: you go see a house at 1234 maple street and the seller says, "i want 150,000 dollars for this." you then say, "but it is not worth more than 100,000 dollars." and the seller says, "i know that but what you do is buy it and then sell it to a bigger fool than you for 200,000 and you will make a profit of $50,000 by overpaying $50,000 to me. you tell him to sell it for $250,000 and he will make a $50,000 profit." so you buy it and do exactly that. these investors here in vegas are what is called in this game, THE LAST FOOL IN LINE.
guess what kiddypoos, buy a house to live in for an extended period of time not to try to make money on it. to believe that house values will double every 4 years like they were doing for a short time here in vegas is unrealistic. if incomes are not doubling during that time how could house prices keep going up with no new buyers being created? a middle class family can only afford X amount of money for their housing. if you have 3 children, two cars and a mortgage you need a fair amount of money just to pay the bills for all of that. ask anyone who is doing it.
somewhere along the line people quit looking at their house as where they live and moreso as some kind of "investment." i have never bought a house that i did not intent to live in basically for the rest of my life based on what i knew at that time. the one i own now is the third i have ever owned and hopefully it will be my last. the other two, circumstances lead me to leave. shit happens.
7 out of ten republicans approve of george w. bush's handling of iraq and of our economy. that is not a joke. then again i guess it is.
guess what kiddypoos, buy a house to live in for an extended period of time not to try to make money on it. to believe that house values will double every 4 years like they were doing for a short time here in vegas is unrealistic. if incomes are not doubling during that time how could house prices keep going up with no new buyers being created? a middle class family can only afford X amount of money for their housing. if you have 3 children, two cars and a mortgage you need a fair amount of money just to pay the bills for all of that. ask anyone who is doing it.
somewhere along the line people quit looking at their house as where they live and moreso as some kind of "investment." i have never bought a house that i did not intent to live in basically for the rest of my life based on what i knew at that time. the one i own now is the third i have ever owned and hopefully it will be my last. the other two, circumstances lead me to leave. shit happens.
7 out of ten republicans approve of george w. bush's handling of iraq and of our economy. that is not a joke. then again i guess it is.
posted by Ron Shock | 12:21 PM
5 Comments:
Ron, looking forward to seeing your shows in Indianapolis next week. might have to come to more than one, in prder to introduce some friends and familty to the best act in comedy I have ever seen!! Peace!
Housing,
The push to home ownership is distorted. If people do not plan to live in a house for at least five years there is no advantage over renting. Payments in first five go to interest real estate fees and such not to principal so no equity. Tax deduction, no go how many middle class actually itemize? Figures show not the majority so no deduction. There is risk. If prices drop quite often there is an economic problem in broader community (think Detroit) renters are more able to relocate where there are jobs, home owner stuck. There is much more to this story.
you are exactly right! home ownership, like stock ownership, does indeed contain some risk. they sell homes, sometimes with very questionable financing, (think variable mortgages), as a sure fire way to make money and that is just not the case. rhonda and i bought this home in 03 and it supposedly has doubled in value, however since we plan on living here until we die and we also do not plan on "taking equity out" the value of our home means very little to us. the location of our home (close to the strip) and it's size and, of course, huge pool is what we like; not some madeup figure of how much it is worth.
Off subject but did you ever consider Albania? A country that in 1996 practically the entire population lost all their money in pyramid schemes and now in 2007 the issued commemorative stamps in honor of George Bush visiting. They do travel to the beat of a different drum.
i saw today that in albania they just loved george. maybe they can take him off our hands. he walked the streets there but would not get out of his car in america. hmmm.
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