A thought on the "ownership society"....

[Aviation Pro]

...our Little Monkey is constantly touting his child-like pride in the percentage of people who now "own" their homes (never mind the burst bubble or the number of foreclosures). I've been thinking about this percentage and have concluded that it's nothing more than a tax scheme designed to entrap the middle class in a never ending series of tax hikes, which have very little in the way of representation. Think about it, the federal government (in the guise of the disingenious tax cuts) lowers taxes which starve the states and local municipalities and then touts home ownership as the panacea for all ills. States and municipalities, starved for cash, then raise real estate taxes (which are not deductible) to raise revenue. The average homeowner, who is often locked into a interest only loan, has little if no recourse because he/she is on the hook for the loan or faces financial ruin if a foreclosure occurs (no more Chapter 7 bankruptcies, thanks right-wing Congress). Meanwhile, flat wages guarantee a lose-lose situation.

The whole "ownership society" deal is nothing more than an Amway scam, that has trapped million of middle class home owners, and with housing prices falling (but assessments and taxes rising) is just another way to screw the American people.

[acmejack]

1. Worked like a charm too!

Now the values of those homes are declining. You are right, most municipalities, stung by the internet sales costing them on lost sales taxes, have raised property taxes to the statutory maximums. It is going to get terrible.

The only guy who I know whose business is booming is a civil process server. His business has never been better.

[Aviation Pro]

2. After selling my last house....

...I decided to rent. Smartest financial move I've made in the past five years. I take none of the risks and get to pocket and save the money I would spend on taxes, maintenance, etc. For those who think I'm pissing money down the toilet consider the following, the interest on a 30-year fixed $150,000 mortgage means you'll end up paying $450,000 to finally own your home. Even if I spend $1000/month in rent (I don't, I pay less), over 360 months (30 years), I spend $360,000 saving $90,000 (which is carefully reinvested). Did I mention that I'm not paying taxes or maintenance on my rental?

[izzie]

5. You pay tax/maintenance/int. in your rent. But I see your point.

I sold my home and also rent. I was sick of the work to keep a home up at my age. It is the best deal I have ever made. I recall my father who said one has to pay off his home as fast as he can and he did it in 5 years. It is that interest one has to pay 24 hours a day that gets you. You can not work 24 hours a day so you are always behind. You also never get back what you pay for a home on a 30 year morg. Unless it is your home that you wish to say you own with the bank. I am not saying that is wrong but when one sells people never count that in as cost and I never can figure that out. It seems to be a job to find any one that owns a home free and clear any more.

[liberaldemocrat7]

3. Bush actually meant the "You're on Your Ownership society"

The YoYo Society instead of the Great Society that Lundon Johnson, another Texan who escalated a war but at least Johnson will get seen by historians as having helped the poor instead of George W Bush who did what he could to disadvantage them which will put Bu$h next to Hoover in the presidential hall of shame.

Look for the YoYo T shirt and mugs

at http://www.zazzle.com/maximus7

[Jim Warren]

4. School budgets hit hard here

What you say is of course spot on. I've been saying this ever since the chimp "took" office but the knuckledraggers around here chose not to listen. bush tax cuts equal tax increases at the local property level. As well, all fees and licenses in my state have gone up, recreational parks access, etc. also.

It's one big issue around me, with many empty-nesters whos kids already went to public school but who now fight the hardest against school budgets.