Backyard Aquaponics
A place to discuss aquaponics

Timmy

If everyone believes that I despair for future generations. You are a sheep and are regularly shorn.
BTW a house is somewhere you live, not a bloody asset, thats a *sigh* word.

timmy- an asset is something that returns an income and allows a deduction- neither of these apply to a house you live in.

A house you live in, costs you to: buy + interest, maintain, and live in.
It delivers NO return and NO deductions- It is a liability,
nothing less, but it MAY give you capital growth or a loss.

Live in the cheapest house you can find,
...and buy the most expensive one you can to rent out!
Offset your loans for tax benifit and then you start passive
income

In most cases, capital gains from the house you live in are negligible, as when you sell, and gain this profit, you use it to buy either a new, better, bigger or better located house, or any combination of the above. Therefore, the house you live in may increase in value, but that value is never realised, because you live in it.
downsizing in old age is about the only time anybody gains from the house they live in. Even then though, the downsize does not always mean cheaper.
In conclusion the house you live in is not an asset but a lifestyle choice.



However your house, whilst mortgaged is an asset to the bank, which is what I think Timmy was trying to say.

" In conclusion the house you live in is not an asset but a lifestyle choice".
And I suppose the displaced and homeless have made an unusual lifestyle choice; demorgaged perhaps or unasseted?

No, not an unusual lifestyle choice. Unfortunately an all too common one. They attempt to live beyond their means. Whether this is because of lack of education, brainwashing or simply stupidity is not for me to say.
A house is for your lifestyle. It needs to be something you can afford, as it is an expense, and not an asset. I had thought we were in agreement in this.

the banks love you for thinking this

The only rumoured example of this in history was a bloke called "Robin Hood" .... any other examples were either feudal landlords, loan sharks or straight out usurers...


The very rich may invest money, usually short term, in the banks... at rates and conditions that we can only dream off... and often without the fees and restrictions that the rest of us mere mortals have imposed on us...

Any money "invested" then allows the banks to create xxx% of credit to loan to other people... as per the videos posted...



Sorry Timmy, but I think you totally misuderstand the mechanisms and causes of the "debt creation", derivitive creation, inflationary issuance of artifical "credit" that has driven the "consumer" impetus of the worlds economies over the last few decades...

The financial system is no longer based upon "real" assets or upon the value of physical production... it has, by issuance of plastic credit cards, been the same as the reserve banks actually printing money.... inflationary....

Everyone involved has "skimmed" their profits of the top of every "virtual" transaction in the chain....

And through the creation of the "derivatives" market onsold the risk.... over and over again ... to the point that nobody knows who....

Actually "owns" the risk.... who has/is actually underwritting the risk... to the point that everyone in the financial world basically had to shut up shop in the credit market.... because if anyone had put a call on their money... the entire system, and everyone involved would have been unable to pay...

There just isn't enough money in the system... "physical" or "virtual" to actually pay for everyone on the merry go round...

In order to bail out their arses.... they require truckloads of real money..... printed, gauranted paper money....

Either from the Federal Reserve (our tax money) or from our back pockets (our pay packets)....

And Timmy... other than some "paper losses".... I doubt that any of the "very rich" have lost a cent... they may have to wait a little while to realise it... but they'll get interest on it all...

And I don't see too many trading in their Porches, Ferraris etc... taking a 50% salary hit... or declining their annual performance bonuses....

Frankly.... I think there's a large number of the people in the financial sector that should either be "hung, drawn or quartered" .... or at least jailed for twenty years for fraud, embezzlement, misrepresentation of funds, corporate irresponsibility....etc etc...

The concept that "money", "wealth" can be created without a basis of physical production is a deliberate lie and misrepresentation... and the failure of the modern decree of "greed"... and some would say the ultimate extension and inherent failure of "modern capitalism"...

A philosophical definition as far removed as that so often touted as "socialism" these days...

We have been conned.... and no more so than those of your generation Timmy... who have grown up surrounded by the "spuikkers" of the global credit market.... the concept that you can "have what you want, when you want it.... and pay for it later" ...

Someone has to pay in the end.... and believe me... it's you and I.... not the rich... and most certainly not the "very" rich....

Or we could open our own bank with this made up money. Then consolidate all of our debt there and then shut the doors. Not before getting paid one of those big bonus that we heard about.

Duff

When you take a 'profit' from any unproductive enterprise you end up *frack* someone else. I know you were joking but that is exactly what is happening.
KP
Try the word necessity rather than an expense or an asset or a lifestyle choice . Engineers end up on the streets too

There is only one way to "wealth" left us. Get free of all debt. And then self-sufficiency in terms of food, fuel, clothing and housing. A simple local barter system would be healthy too for specialised services. No taxation. No debt. Off the grid in every way. A pioneering agrarian lifestyle again...... Seeds and skills will be of premium value.

Fractionalised Reserve (should be called No-Reserve!) Banking Money System will fail. The rumblings have started. I wonder how many of us will take note and then actually do something about it before it is too late..........

It will fail before everyone can get out of debt anyway because it feeds on debt. Wise are those who do not wait.

Yeah I see your point. A house is a necessity. One has to live somewhere. The type of house, or the amount of house that is above bare necessity, this is what I was meaning as an expense or lifestyle choice. After all, I know a guy who sleeps in an old tin dairy (massivly hot and cold by turns) with his dog and a horse. He recently went out and bout a Brand new Hilux and paid in cash! :-) Turns out he's not poor, just chosen the bare necessity in accommodations.
Suggesting that somewhere to live was a lifestyle choice or expense, is not what I intended, reading over my posts, I sound a touch pompous and arrogant. For this I apologise.
What really annoys me is the ppl who think they place they live in is an asset, so it's ok to buy something a better, cos it'll increase in value more, and it's ok to spend $100k on an extension to a $200k house, because then it will be 'worth more' without realising that they're just spending money, and it's doing nothing for them but to better their living conditions.

Was told once that when you retire the biggest difference on being able to enjoy it was if you owned your house or not. 2 years ago we sold one business and a house and got debt free and have stayed that way so far. It makes a big difference to your stress levels if you can get there too.


Yeah was just highlighting what is against the law for us to do but okay for other people.

KP
No worries its just me, the refuges are having a hard time at the moment because of the financial boom in WA. House prices went through the roof and rents with them. If we bust and unemployment goes up there will be an even bigger problem with repossessions.

Yeah I head WA is becoming ridiculous, the cost of living has skyrocketed along with property. I feel sorry for you guys.
Why get everybody not move to melbourne, and drive our prices sky high? That could cause a slump in WA :-)
It's a nasty vicious cycle of inflation
Debt free would be lovely. The only debt I could ever want, is debt used to invest in something better. It seems difficult to grow without debt, or backing but that's a different discussion to housing.

Thats not how it really works. They loan you fake credits that they do not have to possess or put at risk then you have to pay back with your real labor/time.