You Never Own Your Home.
The reality is that as long as there are property taxes in your country, state, province, county, or city . . . you are a renter until taxes are raised to the point you would rather walk away than pay them. Even if you no longer have a mortgage! That is why property taxes exist; to confiscate if necessary.
Recently, the government fabricated tax increases based upon renovations that never took place. For one woman, they simply took the money out of her account sending her into overdraft conditions when they claimed she did $79,780 in renovations to her tiny 860 square foot home when no work was ever done.
Governments are going bust everywhere and are desperate. This system of government pretending to represent the people when they act more like paying the Mafia for protection. In this case, you have to pay the government or else they take your home. You have no right to simply retire and die in peace. They tax you until you are dead and then demand taxes from your estate. We have all become simply economic serfs working for the landlord and we own nothing for they have the right to take everything if we cannot afford to pay what they demand. In this case, they just pretend you did something and send you a bill.
This is why I rank property dead last as an investment during socialisms deflationary global cycle. It is not movable in tough times. It always takes the greatest decline in value because of its illiquidity.
The population of Rome collapsed from 180AD because taxes kept rising and people were just forced to walk away. History repeats itself over and over again. So caution is advisable with real estate. Obviously, we need a place to call home. However, it should not be 80% of your assets. It should be limited to a portion of your portfolio that you can afford to walk away from and survive.
It’s a shame government turns so aggressively against its people. They are always the great destroyer of civilization.
This collapse of socialism globally started September 30, 2015 as I wrote then, it has started to pick up steam as you have seen with Greece, Brexit, the US elections, the progressive demise of the EU, and that of Brazil, Venezuela, and South America. Politicians do not want to get real jobs and will not go quietly as they never have in history.
An InterAnalyst basic membership can keep your retirement safe during bear market collapse and growing in bull markets.
Member Login Hi, (First Name) | Log Out
Livio S. Nespoli has been a broker, registered investment advisor, and financial publisher since 1985.