4 ms·
This is a great concept that I'd been mulling over a lot. If you think about it, vast majority of peoples productivity goes in to real estate and taxes. It's no
by sytelus 8y ago
This is a great concept that I'd been mulling over a lot. If you think about it, vast majority of peoples productivity goes in to real estate and taxes. It's not just your rent or mortgage you pay directly. When you buy burger, that shop is paying for its lease so indirectly you paid part of its lease as well. In same way, you are not paying just your income tax but sales tax, tax on transportation, business tax and so on for all your consumptions. So if you sum up your expenses and start figuring out all the money that eventually ended up to real estate owners or tax collectors, it's very likely to exceed 70% or more for many folks.
Now the fact is that land is cheap as soon as you get out of urban area. You can literally buy up size of downtown Manhattan for less than a house price in Manhattan. What if you set up utilities, roads and offices and make all real estate free? No one has to pay for any rent, mortgage or lease? What if entire country was built like this from the start? What if fast well planned commute infrastructure over distances was always high priority? This experiment can be conducted if we manage to buy up may be Manhattan size area, can set up universities and move some big players.
- srtjstjsj 8y agoWhat is the benefit of spending 70+% of your income on road/transport/water/sewer/electric utilities + tax instead of real estate + tax? Also, about half a mortgage is for a building, not real estate.
- titanomachy 8y agoDepends on location. Cost of building a house doesn't vary as dramatically as cost of land.