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Two Charts That Show The Housing "Recovery" is a Farce

Since the start of Smaulgld.com we have been covering the housing recovery noting that it has been characterized by higher home prices but low sales, low new home construction, low inventory, low household formation and low participation by first time home buyers and millennials.

These two charts illustrate what a farce the housing "recovery" has been:

http://smaulgld.com/why-the-housing-recovery-is-a-farce-illu...




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Cyril's picture

Yup.

I can see it every day over here!

In La-La-Land.

LMAO.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

LMAO.

LMAO.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

we have recovered right into a recession

crazy how many people believe there is a "recovery"

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Cyril's picture

Proper verb

"Believe" is indeed the proper verb.

Clearly, they can't see.

They can't think, either.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

It still blows my mind how

It still blows my mind how people can expect housing prices to go up perpetually. Let me get this straight, you buy a home you cant afford so in the future you can hopefully sell it for more even though you raided the equity out of it, so you can buy another even more expensive home you cant afford.

I am 25 and can tell you my friends who have bought a home are happy it collapsed, some got a great deal. A home is for living and if you want to build equity then actually improve the property with landscaping, paint etc.

We all share this eternally evolving present moment- The past and future only exist as inconsequential mental fabrications.

Agree, a primary residence

Agree, a primary residence is an asset not an investment
http://smaulgld.com/gold-silver-and-real-estate/

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2.3% to 3.5% property taxes in Illinois

I've seen property taxes as high as 3.5% of the true value of the house on a lot.

That's as much as $7000 per year on a $200,000 house.

"Timid men prefer the calm of despotism to the tempestuous sea of liberty" TJ

Primary residence is a liability

If you're lucky it will appreciate.
In most cases it's just a liability.
Annual expenses, even without debt load, nowadays a typical house will cost $100,000 over twenty years just to support taxes, maintenance and upkeep. Then there are utilities perpetually increasing.

I like cash flow. Then it doesn't matter what the government bleeds out of me.
http://www.dailypaul.com/comment/3330268

Real Deal Right Here
“Give a man a gun, he can rob a bank. Give a man a central bank, and he can rob a country and the world.”
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the term homeownership..

...is a farce. We're all renters, period. We're forced into another gambling game with our savings known as equity which the banksters and government looters can wipe out as they please. The system is heads I win tails you lose and unless there's a REAL revolution(and yes, by 'real' I mean a literal overthrow of the entire corrupt mess) the Lords will continue to expect fealty from we the serfs. I don't know how much longer we are going to wait until the next shot is heard around the world but until then the plutocrats and their government minions are going to continue to party like it's 1599. I wish the Martians with giant brain skull faces would come and blow up congress already!

correct a home is a liability

that if you maintain it, you get to live there and will the mortgage interest rate deduction and normal repairs should hold its value and provide you with a better cost of shelter than renting.
BUT when you add in cheap money it becomes a speculative investment

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This phrase is CPA brainwashing

"mortgage interest rate deduction"
I'll take debt free and a friendly lein to protect the asset any day over paying some bank 150% interest over 20 or 30 years.
TIP: If the government/IRS comes up with an idea, it's a trap.

But yes, I'm not saying that we shouldn't spend money on our homes. I'm getting at the misconceptions people have about profiting on real estate.
It's gotten to the point for me that I take 'printed money' from traders, pay half in taxes and then put the rest into businesses that allow me to take deductions, showing small taxable income and getting a good or service that I want. And I help a small businessman whom I like.
I call it 'Angelo's Socialism'.
Anything to keep more money from going to D.C..

Real Deal Right Here
“Give a man a gun, he can rob a bank. Give a man a central bank, and he can rob a country and the world.”
www.dailypaul.com/donate

agree but that is one of the "benefits"

to taking out a mortgage

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