Blue sky thinking

On Fri, 21 Jul 2006 07:27:56 -0700, Jim Thompson wrote in Msg.

So do many Germans. The existence of an affluent middle class doesn't exclude the existence of a large fraction of the population at whose expense the affluent middle class enjoys their steak and shrimp.

Financially it doesn't make much difference if you rent money from the bank to buy a home, or if you rent just the home. Renting vs. buying is not an indicator of wealth. On the other hand it'd be interesting to compare the percentage of people who have any home at all in the US vs. Germany.

robert

That's the zero-sum philosophy, that the amount of wealth is constant and that anybody who has stuff takes it away from someone else. Obvious nonsense.

It matters when someone dies or decides to move. Buying isn't wealth, but owning is.

John

You spend too much time believing media hype.

...Jim Thompson

If no one ate shrimp the shrimpers would be sooo much better off.

Or want to borrow money to say, start a small business (like shrimping).

too

I wouldn't suggest anyone start a business using shrimp boats in the ocean. Here in the gulf we have lost a large percentage of our shrimping fleet. The farm raised imported shrimp are keeping the price of shrimp low and the fuel costs have (a large part of boat expenses) increased. The shrimpers have been squeezed and many have given it up. Shrimp farms within 15* of the equator can get three crops a year. The wild shrimp have a flavor advantage, but most of the grocery stores sell imported shrimp. Mike

Woooosssshhhh!

Have any of the shrimpers considered setting up a shrimp farm?

Thanks, Rich

It is not easy to set up a shrimp farm. You need to own a lot of property and environmentalists hate them. A guy I know here tried it and lost his ass.

We have a catfish farm here in Arizona. Fellow scooped out a chunk of desert, lined it with asphalt and filled it up with water ;-)

I understand there's also a shrimp farm in Arizona, Mexican prawn-style stock, but I haven't seen it.

...Jim Thompson

On Mon, 24 Jul 2006 07:45:51 -0700, Jim Thompson wrote in Msg.

So, where is the flaw in my argument? You don't get anything for free, neither when buying nor when renting. Renting is better than buying if the rent is lower than the interest on capital, and vice versa.

robert

Because, after five years of rent, you are out 50K. After five years of owning/mortgage, I can sell the house and make 100K. I had to live somewhere!

Charlie

Our local catfish farm got converted to a drag racing track.

Suppose I'm renting, and the landlord is paying $2800/month (mostly interest) for the mortgage and $500/month in real estate taxes. He's also spending say $185/month just for maintenance of the property. I'll assume you, the renter, are paying utilities directly.

So the landlord has to charge a minimum rent of $3485 just to break even. In reality he charges you rent of $4000 so he can "profit"... the great American word ;-)

So you are "out" $4000/month with nothing to show for it.

In the US, if I were buying the property, I can deduct a goodly portion of that cost from my income taxes. The US encourages home ownership. I also accrue an equity interest in the property... "profit" again ;-)

Since you are from a socialist country you probably do get rent subsidies from the government, which come from "taxing the rich", except I can guarantee you that the landlord always comes out ahead... you lose ;-)

...Jim Thompson

Tell me about these real estate taxes that apply in the land of the free, Jim !

Graham

But in the US, mortgage interest is tax deductable and rent isn't. So it's not uncommon to be able to buy a house for less than it would cost to rent it. And when you move out, you may get a heap of money. Or when you get old, you get to live in your own house, rent-free.

John

It used to be over here too but it was the Conservatives interestingly who determined it was distorting the market and removed it.

Graham

Once upon a time, over here, all interest income was taxable and all interest payments were tax deductible. Since that clearly didn't maximize tax revenues, most of the deductibility part was zapped. Except for the home mortgage interest deduction, messing with which would be an instant trip from politician to hot-dog vendor.

Businesses can still deduct all interest payments as expenses. Small businesses can also expense something like $120K a year in capital equipment purchases, so we effectively buy test equipment and cars and stuff at about half price.

John

shrimpers

imported

The info I have is, you can raise three crops per year within 15* of the equator, but only 1 crop in northern Florida. Also if you have a loss (disease, weather, etc.) you have lost a year in Fl. but you can start a new crop near the equator.

Well, they're local, so they're a Hell of a lot better than federal income taxes, and they're assessed proportionally (theoretically) based on the value of the property. They pay for things like streets. They used to go to schools until the unions and feds got their fingers into that pie.

Thanks, Rich