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They are all paying below market rent and I rarely raise rent on them.
I also know my good fortune will run out soon one day given the trajectory of the country, so I am making "exit" plans which require capital. Obviously that statement was a bit of hyperbole. I'm not swimming in a vault full of gold coins like Scrooge McDuck.
So why are they having issues paying? Under-unemployed due to the pandemic? Or was their income never high enough for even your below-market rent? If the latter, then stop enabling people to live beyond their means. If the former, then you have it within your means to "give them a break".
where do those billioniares get their $$?
from us,so if you resent them,tear up your VISA,MC,AMEX,drink tap water,use landline phone,stop streaming movies,stay home and mown your lawn instead of short vacation to exotic islands,,use fan instead of A/C,turn off heater and wear heavy underwear,make your own meals and stop ordering fast food.
That's exactly what I've been doing. I refuse to buy a Tesla and have been limiting Amazon purchases, etc. I don't want to make these guys any more rich and powerful than they already are. I try to spread the wealth.
I am the prototypical American that has benefited greatly from capitalism.
My family was lower middle class growing up, but with hard work and some smarts and a lot of luck, I made something of myself.
I bought my first place in my mid 20's (not an easy feat for someone in the NE where real estate is very expensive) and continued to accumulate houses and wealth.
I now (in my 30s) have multiple properties, in addition to a very high paying day job, which affords me the ability to purchase even more wealth building assets.
I have stopped purchasing homes since covid, given the red hot, overpriced housing market (but did take advantage of low interest rates to refi a few), so I have more money than I know what to do with. It's a first world problem, but still a problem nonetheless, since I have very little faith in both the housing and stock markets ATM. Having it sit in a bank account where inflation is eating away at it kills me.
But focusing on real estate only... I have a few tenants that struggle to pay rent. Some are a few months behind and obviously are not doing well financially. Their chances of ever owning a home outright are slim to none.
My future children OTOH will inherit my wealth and properties and continue to benefit with a great headstart on life, and hopefully take full advantage of that and get ahead further on easy street.
Of course they could squander my wealth if I don't instill a strong work ethic in them, but compared to my tenants, they have a huge head start.
Fast forward a few generations and we have what is now the US - a huge divide between the rich and the poor, the haves and the have nots. We have what I'm doing with RE on a much grander scale (Blackrock). We have billionaires influencing politics to pass laws that benefit them even more. I am small potatoes compared to them, so I can't even begin to fathom what it's like to be them, but I can see how inherently destructive the system is.
What we have is rentier capitalism - we have a class of asset owners, and a lower class that rents from them, and it's getting increasingly hard to crossover as witnessed by a much lower percentage of millennials owning their homes when compared to their parents at the same age.
I see no other out other than a collapse caused by a revolution, an uprising, possibly a civil war.
How can you blame CAPITALISM? We no longer have capitalism in America. The FED is solely to blame for all this insanity and madness since 2001.
Let me say something about equality. There is no equality in nature. It never was and it never will be. The problem we have is the LEFT and that the LEFT tries to govern with a principle that does not exist in nature. The LEFT wants to destroy the idea of a hierarchy, but nature is based on hierarchical order.
Where is Nature without the hierarchy of the food chain???
We are in a BIG, FAT and UGLY BUBBLE and in order to deflate it we will need DEFLATION, GREAT DEPRESSION and a WAR maybe.
I assure you that the alternative (socialism) is worse.
And you know this how? Have you lived in a socialist country?
We retired to one, and love it. Our retirement is assured due to affordable health care ($80 a month for us both) and low property taxes ($45 a year). No homeless, no high taxes. Everyone will get SS someday.
But there are tons of small businesses, so there is still capitalism. Possible to have both.
And you know this how? Have you lived in a socialist country?
Just ask the Russian Americans who ran away from Soviet Russia. Or the Cuban Americans who fashion boats out of 50s trucks.
Quote:
Originally Posted by Sand&Salt
We retired to one, and love it. Our retirement is assured due to affordable health care ($80 a month for us both) and low property taxes ($45 a year). No homeless, no high taxes. Everyone will get SS someday.
But there are tons of small businesses, so there is still capitalism. Possible to have both.
It's great for you because you took your US dollars, that you earned in a capitalist economy, to that country.
This is where I disagree.
While I don't agree everything in life is a zero sum game, certain resources definitely are.
Land (short of landfill) isn't being produced anymore. Prime real estate are all accounted for.
Everything close to desirable jobs (i.e. city centers) are extremely expensive.
We are in different times than my parents where a single parent could earn enough to raise a family, and actually it was around that time where both parents working full time jobs became a necessity.
Sure, one could be renters their whole life, but the key to building wealth is owning assets.
Real estate isn’t a zero sum game.
That you own property and your renters don’t does not a zero sum game make. A zero sum game is transactional and requires a winner and a loser. In real estate transactions, as in all other market transactions, both parties win. If they didn’t, they wouldn’t engage in the transaction.
This is where I disagree.
While I don't agree everything in life is a zero sum game, certain resources definitely are.
Land (short of landfill) isn't being produced anymore. Prime real estate are all accounted for.
Everything close to desirable jobs (i.e. city centers) are extremely expensive.
We are in different times than my parents where a single parent could earn enough to raise a family, and actually it was around that time where both parents working full time jobs became a necessity.
Sure, one could be renters their whole life, but the key to building wealth is owning assets.
Wealth is the sum total of assets, both real and financial. Many of us accumulate wealth through financial assets.
I acquired the bulk of my assets by working for major corporations, being promoted, and saving money since childhood. A judicial balance of risk and opportunities creates wealth. And you have to love that compound interest.
My real estate assets (basically personal real estate) are but a small portion of my total net worth.
I am the prototypical American that has benefited greatly from
capitalism.......
Fast forward a few generations and we have what is now the US - a huge divide between the rich and the poor, the haves and the have nots. We have what I'm doing with RE on a much grander scale (Blackrock). We have billionaires influencing politics to pass laws that benefit them even more. I am small potatoes compared to them, so I can't even begin to fathom what it's like to be them, but I can see how inherently destructive the system is.
What we have is rentier capitalism - we have a class of asset owners, and a lower class that rents from them, and it's getting increasingly hard to crossover as witnessed by a much lower percentage of millennials owning their homes when compared to their parents at the same age.
I see no other out other than a collapse caused by a revolution, an uprising, possibly a civil war.
So, who do you think the revolutionaries will be? And who will be the counter-revolutionaries? Whose banners will fly over the battlefields of this possible civil war?
You haven't benefitted from capitalism. "Capitalism" is a mythological boogey-man that symbolizes everything anti-freedom ideologies don't like about freedom, whether it relates to economics or not. The world economy runs on one basic reality, and how each state regulates economics determines how WELL markets can function in a given state. For the many or for the few. All the "isms" aside... there's only ONE human economic system. North Korea, Canada, Switzerland, Brunei, etc.... Everywhere. The only difference is HOW MUCH freedom markets operate under.
What you have benefitted from is FREEDOM. And your initiative to use that freedom benefitted you to the greatest possible extent. Now..... you've got "more money than you know what to do with"... so, you've reached your Peter Principle moment I guess. You were competent at making money and you made so much of it, you discovered your incompetence comes into play trying to figure out what to do with it. Unless you didn't really mean that.
Start a school where kids can learn about succeeding in free markets. Teach all the necessary skills to turn them into real entrepreneurs who can maximize opportunities and make the world a better place by stewarding those opportunities wisely. Unselfishly. Not for personal aggrandizement and lowbrow hedonism. Make it free for the poor. Hire entrepreneurs to teach. You can figure out some model.
With a hundred schools like that, no revolution is needed. They would be THE REVOLUTION.
Because that's the one and only revolution this planet has NEVER seen. The revolution where ordinary people are pointedly and deliberately taught to not think like sheep.
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