Posted on 09/15/2022 6:59:04 AM PDT by Oldeconomybuyer
AP adding to their story yesterday about “too much cunsumin going on” causing inflation.
Good ol Senator Foghorn Leghorn.
” best thing I ever did was get out of and STAY out of debt.”
You’re pretty darn smart, in my book.
I’m not sure how you equate gasoline excise taxes with property taxes. For one thing, fuel tax revenues are ostensibly earmarked for roadway projects and maintenance. Secondly, the tax is added during a sales transaction. If my home is paid off, there is no sales transaction to tax. The government just charges you whatever variable percentage they want, based upon an assessment they calculate, and then collect that money under threat of taking your property for failure to pay.
I had 10 mortgages, paid them off and retired by the age of 60, debt free. Bought the house I’m in now with cash. A few were actually development loans, but they were secured by the property so they were mortgages too.
Few people understand the power of leverage.
Avoid debt on depreciating assets.
Debt leverage can used to great advantage on appreciating assets.
“I had 10 mortgages, paid them off and retired by the age of 60, debt free. Bought the house I’m in now with cash. A few were actually development loans, but they were secured by the property so they were mortgages too.”
Buy smart, sell high. Be disciplined. Be patient.
I was always thinking of that from decades ago but my job took all I had so put money into stocks.
I moved out of one house in 1982 and rented it for five years. Second renter made an offer.
I agree with your post as a practical matter.
The theoretical issue is that the power to tax is the power to destroy, so in theory a hateful government could raise property taxes to the point that the home-owner would become “house poor” and could not afford to continue to live there.
Currently there are a variety of exemptions and exceptions that keep this from happening for most people, but there is no guarantee this will continue indefinitely.
That said—in the real world owning is much better than renting for quality of life reasons (imho)—particularly if you avoid fascist home-owner associations.
“Avoid debt on depreciating assets.”
Not always. My car loan is 1%. Money freed up by that debt is invested in appreciating assets paying 3% dividends.
“That said—in the real world owning is much better than renting for quality of life reasons (imho)—particularly if you avoid fascist home-owner associations.”
HOA’s are run by homeowners. How is that fascism?
I live in an HOA and benefit from the great neighborhood, benefits and home values.
Eventually the Karens will take over—some lessons are best learned the hard way.
“The government just charges you whatever variable percentage they want, based upon an assessment they calculate, and then collect that money under threat of taking your property for failure to pay.”
Not arbitrary. Calculations are done to support the proposed budget.
Done by elected officials. Don’t like them, kick them out.
“so in theory a hateful government could raise property taxes to the point that the home-owner would become “house poor” and could not afford to continue to live there.”
In theory, the homeowners can kick the government’s rear by voting them out.
“Eventually the Karens will take over—some lessons are best learned the hard way.”
Not in my neighborhood.
So I would lay the product away, cash my paycheck a week or so later and bring cash to pay off the item.
Why would I bother doing this instead of just waiting to have the cash in hand? Well if the item was on sale, you would lock in the sale price if you didn't have the cash today. Also, if the item was out of stock later, it might be weeks or never before that particular item was restocked.
I barely remember it, but yes I do think there was an illusion of running out or ‘pay less now or more later’ going on.
I’m glad that scam is long gone.
Thanks, FRiend!
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