It's days like this the Captain decides to fire up a cigar and pat himself on the back.
From CBS Minnesota - Minneapolis housing prices drop the most out of all major cities.
From half a year ago - The Captain lays down some super awesome economic genius of the corollary between property taxes and prices.
From 4 years ago - The Captain's book predicting the housing crash.
But, no no. That's alright. Don't listen to him. What does he know? He's some crazy guy that jumps out of trees and runs into bushes.
Enjoy the decline!
I'm sorry, but this is trivial. The price of an asset is equal to the discounted sum of future income from this asset, risk-adjusted. You pay more for property tax -> you get less income -> the asset gets cheaper. No genius required for this particular prediction.
ReplyDeleteUnfortunatly there is no praise in being "correct" in this case. There would be praise had the Leftists listened to you and you could have saved thousands of taxpayers 100's of thousands in lost property values...
ReplyDelete...maybe they will listen in the future...
I have house, but I realize it is merely an expensive consumer item. You are really paying for the privilege of not having to listen to someone pee at 4 in the morning or some other activities.
ReplyDeleteYou can have some personal space for a hobby area or whatever if you are by yourself.
I do fork over quiet a bit in taxes and insurance relative to my take home pay though I went as low as I could.
A home is still a worthy investment. Historically real estate has paced inflation. Even with the values dropping to realistic levels, and even though I am "underwater" - it is a relief to me to have this asset as they are preparing for Round 3 of printing more money...
ReplyDeleteIt is another piece of your great work. Your site is very interesting and I read your posts each time something new appears. Thanks for your work.
ReplyDelete