A Shelter For Your Family Should Not Be Purchased As An Investment. Nor Should An Investment Property Be Purchased As A Family Dwelling.
Home values before 1986 we’re reasonably priced. They rose with inflation which had some what of a gradual predictable climb. You could take care of your family and live in one home for life and expect your taxes to stay near the same year after year. Than in 1986 some genius on Wall Street thought better of that model and decided to detach it from the safety of reasonability and to bundle mortgages together and sell them on the open market. Skyrocketing the value of homes year over year still to this day. But who does this really benefit? What’s really happening to these homes to cause such an increase in value? It wasn’t like these homes were improved upon so much so to warrant such assessed values.
In actuality, banks and the government dictate these values and they are the ones to benefit from it. The more the value increases the more taxes you pay. The more you think your home has increased in price, the more you’re inclined to sell and again you pay more taxes in the form of capitol gains tax. With that higher value the more you will have to pay to your mortgage lender monthly. As well as having to put a larger amount of money down. Money that is loaned to you for home your purchase. Is money your lender gets to create out of nearly nothing with the help of fractional reserve banking. Which gives the bank power to loan money it doesn’t actually have. All the while you essentially rent your home from your bank, hoping to eventually own it. Paying double the value over the life of the mortgage. Here’s the kicker, when its finally paid off and you “own” your home, you still don’t own jack. You continue to lease your property from the government for life or long as you “own” your property. Miss a tax payment and they can confiscate that land and house you “own” at anytime. This is all if you can even pay it off in 30 years without refinancing. If you go the refinancing route, guess what? You get to start that 30 year mortgage all over again. To cap it off all the money you pay into this global mortgage fund gets placed back into the market by the banks, for the banks to profit off your hard earned income. Meanwhile when your house poor and can barely afford the groceries. Banks use your mortgage money to inflate the cost of other goods, all the while continuing to make the collector that much wealthier.
I’m not against investing I’m against pricing people out of reasonably priced shelter. The fictitious market called wall street supported by investment banking should not be able to dictate how much our shelter should cost. If there must be incursions from investors on the value of homes we should create new classifications of homes. Make investment grade homes for the investors playing in the market to invest in and hope to gain returns. And make a classification of life dwellings for those who just want to live in the home for life. Lifelong classified homes should than be removed from market speculation. And the home, as long as maintenance is maintained, should very slightly increase in value over the lifetime. No more than two percent a year.
Thank you very much for taking the time to read our post. If you like what you read, or even if you don’t, we would love to hear from you. Please join our email list here. Or if you want to comment on this article, or write your own in our Forum. Please sign in here and if you are new to the site you can register here. This website is not intended to be a blog. We want it to be a place to help others grow and learn from mistakes and the Forum is where that begins. Please tell us your stories.