Oddbean new post about login | logout You don’t actually own your house or your land, you are renting them from the government. If you don’t believe me, try not paying your property taxes. Unlike a house or land, #bitcoin in cold storage is a true bearer asset. It is decentralized and cryptographically-secure property rights for all of humanity.
Be that as it may I gotta live somewhere and I prefer it to be a house that I build equity in vs renting and building the landlorda equity.
That’s what I always say when people talk about a house being a bad investment. Bitcoin is obviously a way better store of value. But also, if you don’t pay your own mortgage and property taxes you are just going to be paying someone else’s and have nothing to show for it in the long run. You also aren’t going to be allowed to modify or improve it and have to get permission from a landlord to have pets, run a business out of it, or whatever else you might want to do in it.
Then there’s also the fact that rent will get raised on you every year or 2 since inflation never ends, whereas a fixed rate mortgage won’t change. 10 years from now renters will be paying twice as much and I’ll still be paying the same.
Fixed rate mortgage FTW, but the right analogy is taxes. In most states your home taxes will get reassest every year. They almost never go down. So that's similar to the rent raise. Home ownership in the USA is one of the few assets where a wealth tax is applied. It's still way better financially to own than to rent. Zero question about it.
We have 2 socialist parties who pit us against our fellow man. We have entered a time where power is coming back to the people. The Orange Man was the catalyst towards giving this transition terminal velocity. It’s inevitable. The questions that remain are: To what extent? At what cost? I very much hope that in this seasonal shift towards sovereignty we regain property rights. #Itisuptous
A lot of people are far too invested into RE, thinking that a house is always an asset. That can change very quickly, especially with the majority of people using leverage to “own” or purchase their homes. It’s a good way to get trapped or wiped out when economic/social/demographic factors turn against you.
If you are even one day late on your property tax payment, no matter how many years you paid on time, they immediately assign you a new debt (X delinquent fee) that grows MONTHLY at an artificial interest rate they determine (such as 18%). Its the fastest youll ever see govt move. If they have to force sell your home to recoup, they often sell for whatever they can get to cover their lien which is usually lower than fair market value, effectively stealing your equity and giving it away. Doesn't matter if your grandfather built that house with his two bare hands.
