When I learned how a lot of the government policies worked it just kinda blew my mind. Yes you are effectively 4x leveraging your investment with a way lower risk than doing something like that in the stock market. You are certainly leveraging other people's money in a way. Plus the tax deductions on asset depreciation are wild.
Maybe it won't last forever, but I'll pursue it while it works.
Re:Buy payphones and retire
by __turbobrew__ on Monday October 28, 2024 @09:05PM
(#41978319)
Yea I think that is the crux of it. You are using social programs designed to keep a roof over people’s head for financial gain.
Re:Buy payphones and retire
by lotsofpulp on Monday October 28, 2024 @10:14PM
(#41978696)
If the social program was designed to keep a roof over people’s head, then it would simply give people cash, or a roof.
The fact that the social program involves extending lines of credit means that the design was not to keep a roof over people’s head, but rather enrich existing asset owners and indebt future ones to get them chained to the treadmill. Similar to cutting funding for higher education and replacing it with student loans.
Re:Buy payphones and retire
by __turbobrew__ on Monday October 28, 2024 @10:58PM
(#41978929)
Maybe I am wrong about the purpose of subsidized loans for housing but the result is the same — public costs, private profits.
Will gen Z see they are at the bottom of a pyramid that ceases to exist with their generation?
> If the social program was designed to keep a roof over people’s head, then it would simply give people cash, or a roof.
Except it wouldn't happen, because it would get killed by even louder whining about giving free money to the lazy do-littles. Every social program has to have a layer of appeasing the people who only feel they're part of a society when it benefits them.
The federal government taxpayers (especially future ones) provide enormous subsidies in the way of 30 year fixed rate loans with no prepayment penalty, and no risk of having the loan be called. Many state governments make home mortgages non recourse as well. And then there’s the federal 1031 tax exchange benefit. And there are county/state limits on property tax increases, like California’s famous prop 13.