Your House is Not Worth MoreRead any newspaper, magazine or watch on TV and you will hear it over and over again, home prices are climbing. Now, pay attention here. This is exactly what they said all the way up to 2009. The crash had already started in 2008, but for some reason the media kept saying how prices were rising. In fact, they quickly kept saying that we were out of the "recession", although it was and still is a full fledged depression, already in 2009, although it had not even begun to get to the ugly part.
|How the Government Sees Your Home|
The federal reserve bank has crashed the system over and over since 1913, and this time is no different. When several banks were about to go under, on the high end, they simply crashed the system and forced the bank to steal tax payer money and blame it on home buyers. Yet, they told the media to keep spreading the lie that real estate only goes up.
The truth is, real estate is not an investment at all, i.e. generates money for you, unless you rent it out to someone. Owning real estate has never made money outside of rental revenue. Owning your own house does not make you money. People are amazed at how much money they get when they sell their house they have had for 30 years. They are completely ignorant of the fact that the dollar has fallen 5000% over the past 30 years. So if the dollar fell 5000% over 30 years, they are actually coming out behind. They marvel that they can get half a million for their house, but forget that butter is 50 times what it was just 15 years ago. They ignore that gas has increased every 3 months.
You are not and will not make money on your house. The only way to make money on a house, is if you touch it for 1 week and sell it at a hefty profit after that week. But then, that's not an asset anyway. Everyone wants you to think that your home is an asset. An asset generates money. Unless you are renting out your house to other people who pay you monthly, your house is not an asset. Paying your mortgage and upkeep does not make your house an asset, it makes it an expense, just like your car or your kid.
|How People See Their Home|
The real sinister plot is, in those averages are included such bizarre things as million dollar purchases, which can so skew an average as to throw it off for years. Imagine if trump came to your city and bought 3 commercial buildings and 3 home which he converted to commercial property. The local news would report that as average home prices going up and commercial real estate purchases going up. There maybe thousands of real estate deals changing hands back and forth and foreclosures everywhere, but those 6 deals wiped them all out and skewed the numbers. Would the newspaper point that out? No. Because the local realtors and insurance companies want people to buy buy buy. The banks want you to take out a loan for your home.
Do you know that 40% of all homes are still paid for with cash? In fact that number is inching up to 50%. This means the banks are being ignored nearly 50% of the time when the largest purchase, most people will ever see in their life, is made. Do banks influence the news? Of course it does. Is it cheaper to build a house today, than it was 30 year ago? Of course it is. A brand new home built today, costs 30% less today than it did 30 years ago. Why aren't you seeing home prices dropping on new homes? Because it is the best scam going.
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