Hi wimminz, big fan of your blog. I don’t see a way to contact you privately so I’ll just post my question here:
Is Real Estate worth owning (I believe you mentioned you don’t own) or is it just another bullshit Disney belief imposed on society?
I own two properties, one that I rent out and one that I live in. My monthly costs for the one I live in is around $800-$900
The capital gain per year on this property is negligible, you lose a lot on real estate agent fees and lawyer fees (on top of yearly inflation rate), so I don’t even know if it’s worth owning. I could sell both properties and live with a room mate and only pay $500/month on living costs, that would put an extra $300-400/month ($3600-$4800/year) in my bank for me to use elsewhere.
I’m thinking of selling both this summer and moving to another city and traveling the world.
Some questions:
1) Is real estate worth owning?
2) What are better investments that give you a better monthly return? e.g. a dividend index?
3) What would you do with $200k in your bank?
Would appreciate if you wrote an article about this.
“Buildings” I’d personally say are worthless.
LAND is another thing entirely, but it all depends because the state can slap a tax on it and then a lieu on it, so it depends on the type of land innit…lol
Your final question, the only way I can see out of our monetary QE inflation spiral is the thing ALL countries have done in the past, devaluation / new currency, so your 200k of old money, for example takes a 30% haircut while IN the bank (see what already happened in Greece and laws pushed through to allow it here too) so you’re down to 140k, then they devalue the old buck into newbux at a rate of say 25:1, and suddenly you have 5,600 newbux, and every time that has happened prices changed too… here in the UK we went from old pounds shilling and pence to new pounds and pence, overnight, LITERALLY, a 1lb jar of Roses lime marmalade went from one and a half shillings, which was equivalent to 7.5 pence in “new money” to 9 pence in new money, a 17% markup, call it 20%, so your 5,600 newbux gets devalued by a further 20% to 4,480.
So my answer to your final question would be “take 175k of it out” (and lose it in a gust of wind)… and then buy something you can stash that cannot be carried away piecemeal, fuck guns and ammo, if you have secure enough storage for that I’d be buying shit that isn’t going to degrade for 20 years, but that you can sell piecemeal, like reels of armoured electrical wire, pallets of bricks, drums of grease and 140 weight, you get the idea, or blow it all on some relatively inaccessible and undesirable land, but land you could scrape a living off or park a trailer on.
I know I wasn´t asked, but it´s the internet, so there. 😉
1) depends on the real estate bubble you want to buy in – http://imgur.com/gallery/R0c7bJT
2) best investment is where you get the monies out of the ponzi-scheming banksters hands.
IMHO for us Jo Privates it´s owning and living in your own (unpretentious) flat or house.
Speaking from my own experience, it was the best couple of €K I ever spent.
Just the amount of useless rent I don´t have to pay beats every fucking banking-scam investment.
Biggest point against is, now you´re tied down to that piece of land & neighbors. That´s why I added the “unpretentious”(humble).
If in a worst case scenario you have to split, the loss isn´t that big.
3) see 2) and try to understand that the whole global central banking money system is a scam.
If you never heard of it then search for “money as debt” on the UTub.
There´s a good reason gold is getting sucked out of the general populace left and right, China is the biggest global hoarder and the desperate Indian authorities are probably a smidgen away from outlawing it to their populace.
I´m definitely not a goldbug, if anything I´m a pirate-money-bug. 😉
The whole crypto currency phenomena is pretty much the most curious thing I´ve ever seen and somehow I´m of the impression it scares the crap out of the central banksters just like MP3 did the Music-Mafia Bosses.
It´s odd how the dark side always shows up the fatter and older they get.
Comment by hans — January 6, 2014 @ 7:02 pm
Hi wimminz, big fan of your blog. I don’t see a way to contact you privately so I’ll just post my question here:
Is Real Estate worth owning (I believe you mentioned you don’t own) or is it just another bullshit Disney belief imposed on society?
I own two properties, one that I rent out and one that I live in. My monthly costs for the one I live in is around $800-$900
The capital gain per year on this property is negligible, you lose a lot on real estate agent fees and lawyer fees (on top of yearly inflation rate), so I don’t even know if it’s worth owning. I could sell both properties and live with a room mate and only pay $500/month on living costs, that would put an extra $300-400/month ($3600-$4800/year) in my bank for me to use elsewhere.
I’m thinking of selling both this summer and moving to another city and traveling the world.
Some questions:
1) Is real estate worth owning?
2) What are better investments that give you a better monthly return? e.g. a dividend index?
3) What would you do with $200k in your bank?
Would appreciate if you wrote an article about this.
Comment by Amarok — January 6, 2014 @ 8:09 pm
YMMV
“Buildings” I’d personally say are worthless.
LAND is another thing entirely, but it all depends because the state can slap a tax on it and then a lieu on it, so it depends on the type of land innit…lol
Your final question, the only way I can see out of our monetary QE inflation spiral is the thing ALL countries have done in the past, devaluation / new currency, so your 200k of old money, for example takes a 30% haircut while IN the bank (see what already happened in Greece and laws pushed through to allow it here too) so you’re down to 140k, then they devalue the old buck into newbux at a rate of say 25:1, and suddenly you have 5,600 newbux, and every time that has happened prices changed too… here in the UK we went from old pounds shilling and pence to new pounds and pence, overnight, LITERALLY, a 1lb jar of Roses lime marmalade went from one and a half shillings, which was equivalent to 7.5 pence in “new money” to 9 pence in new money, a 17% markup, call it 20%, so your 5,600 newbux gets devalued by a further 20% to 4,480.
So my answer to your final question would be “take 175k of it out” (and lose it in a gust of wind)… and then buy something you can stash that cannot be carried away piecemeal, fuck guns and ammo, if you have secure enough storage for that I’d be buying shit that isn’t going to degrade for 20 years, but that you can sell piecemeal, like reels of armoured electrical wire, pallets of bricks, drums of grease and 140 weight, you get the idea, or blow it all on some relatively inaccessible and undesirable land, but land you could scrape a living off or park a trailer on.
Comment by wimminz — January 6, 2014 @ 8:27 pm
I know I wasn´t asked, but it´s the internet, so there. 😉
1) depends on the real estate bubble you want to buy in – http://imgur.com/gallery/R0c7bJT
2) best investment is where you get the monies out of the ponzi-scheming banksters hands.
IMHO for us Jo Privates it´s owning and living in your own (unpretentious) flat or house.
Speaking from my own experience, it was the best couple of €K I ever spent.
Just the amount of useless rent I don´t have to pay beats every fucking banking-scam investment.
Biggest point against is, now you´re tied down to that piece of land & neighbors. That´s why I added the “unpretentious”(humble).
If in a worst case scenario you have to split, the loss isn´t that big.
3) see 2) and try to understand that the whole global central banking money system is a scam.
If you never heard of it then search for “money as debt” on the UTub.
There´s a good reason gold is getting sucked out of the general populace left and right, China is the biggest global hoarder and the desperate Indian authorities are probably a smidgen away from outlawing it to their populace.
I´m definitely not a goldbug, if anything I´m a pirate-money-bug. 😉
The whole crypto currency phenomena is pretty much the most curious thing I´ve ever seen and somehow I´m of the impression it scares the crap out of the central banksters just like MP3 did the Music-Mafia Bosses.
Comment by hans — January 7, 2014 @ 1:21 pm