Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes. - Benjamin Franklin (1706–1790), Nov. 13, 1789.It is interesting how often the entire quote is split up. Conservatives don't like the first part because it give life to the living document theory. Liberals don't like it because it criticizes the power of taxation.
But enough. It is Casey that is facing one of the inevitables. The Tax Man cometh.
52 comments:
FIRST!!!!!
I'm back.....say it loud, say it proud.
I hope you bunch of loosers enjoyed your short time in the sun with a few FIRSTS because it's over now.
I claim firstness !!!
OH NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!
WHY OH WHY DID YOU HAVE BACK !!!!!!!
Looks like snowflake was interviewed for a German magazine that did not exactly cast him in a good light. I translated some of it for you all:
Let me translate it for you, Casey:
"Casey ees veddy, veddy focked. He schtole to maach money for de houzez ein he der not payed de mort-gages
ein he schcrewt ze bank out uf der money. He ees up schitt creek wit out ze paddle."
Tax season, loved it this year. We got nearly 4K back from my LOOSER W-2 jobs. Need to adjust exemptions so not to waste interest......
How much is KC getting back from his passive income??? Anybody?
Murst! FEAR ME!
OMG! I was so upset about my firstnez defeat I forgot the power of murtnez....
I've been busy moving into my new house. Somebody peed on my carpet...I think it was Dawg.
The house is great, but it doesn't have a pool or a 25,000 gallon pond with fish and stuff.
That fearful murse is looking a little ragged there "Fear me." Are you sure it isn't leaking passive income all over the floor? Murst at 7th place? That's not even a bronze in the carnival awards category.
@Dude - did you double check the bottom of the toilet bowl for things the former owners might have left ?
Dude, google "Nature's Miracle." Stuff works but unfortunately isn't passive.
How does the 1st part of the statement give life to a living document theory for the consitution?
The power of the murse and the fear it instills in all those who come into contact with it eminates from within. The commoners and haterz just do not understand the power and that is why they fear us.
Ancient legend tells us that murses once roamed the land but were crushed by an asteroid from space. But now thanks to the magical powers of Snowflake, murses are reviving and will soon rule again! Viva La Murse Revolution!
How does the 1st part of the statement give life to a living document theory?
Constitution... promises permanency; but in this world nothing can be said to be certain,
Franklin was a smart man. He knew the gaurantees would be eroded and there would be constant efforts to increase scope. He was cautioning against taking the former for granted while placing us on guard against the latter.
Mr. Wankspittle,
as a loyal follower of Mr. Serin's story since its early facing foreclosure days, it is simply not true that nobody 'in Germany will need or use anything on this site.' The amusement is needed, though the use is debatable.
As a side note - the article is essentially neutral to Mr. Serin, apart from the fact that nobody in Germany has yet grasped how rotten the American debt economy truly is.
Germany didn't even have revolving credit until the 1990s - that is right, in 1995, to have a credit card, the amount of your bank account determined your credit limit.
Just another curious difference between the stunted and stodgy German economy, which also happens to be the world's largest exporter, and America's dynamic financial wonderland of unlimited opportunity, and the world's largest importer.
I don't see how the quote encourages the "Living Constitution" theory - the Constitution was designed from the beginning to be amendable, and it has been amended from time to time almost since its origins.
No conservative that I know of has a complaint with this.
My understanding of the "Living Constitution" theory is that judges can read anything they wish to find into the constitutional document, whether or not suggested anywhere in the text.
Which is nothing like what Franklin wrote.
@ stern measures
The point I was trying to make was that he will be unlikely to monetise any traffic from Germany. The "schadenfreude" aspect is a German speciality, of course.
Don't the majority of Germans rent anyway?
aack!
I woke up from my nap long enough to find a new scam for the Fliptard to try:
www.addatradeline.com
Probably too late, with all those foreclosures on his credit report.
Slimy indeed, but a clever business plan of matching buyers & sellers and taking a sweet spread!
thpptt!!!
S_t_C
What's wrong with you people?
That cover of Stern magazine is just screaming out for off-colour comments! You disappoint me.
True, we don't want Casey on our team but there's no reason you can't poke a little fun. (you know, like the little pokes Nigel gave Casey.) There - I pulled it to the gutter. Feel free to continue.
Don't the majority of Germans rent anyway?
German ,and most European in general, real estate is special in the way of quality of construction and therefore price. Before I moved over here I didn't even know that you could build houses out of wood. Still doesn't make a of of sense to me other then price wise but I heard that nowadays you can buy those woodshacks even in Germany.
Obviously this building method makes construction very expensive and a lifetime investment if you can afford it (where I come from a townhouse starts at 750KE). Many people rent (house rentals are far more common there then here) and house owners rarely move as to avoid the cost associated with selling and buying and having to get a new mortgage.
One of the most visible differences between here and there is the number of times people move. European move far less then Americans.
Less movement also keeps down the speculation and gives stability to the housing market......Most speculation happens in the big inner cities like Munich, Berlin, Hamburg, Frankfurt and applies mostly to commercial real estate. Not to say there no residential speculation but it is FAR less then here....
Hope you will pardon my pig style post but I was to lazy to proof read it....
Home ownership rates in Europe vary country to country, and the difference can be very large. It's roughly 50% in German but is closer to 90% in Spain, for example.
Cashback,
The sellers took everything except the paint off the walls....I think they were a little pissed over the negotiations. I REAMED 'em...but they agreed to the terms and, if they weren't happy, they have nobody to blame but themselves.
Yeah, Spain is a bit special as they have been on an economic roll a bit like Ireland. Speculation in both countries is very important....
http://en.wikipedia.org/wiki/Spanish_property_bubble
Germany, France, UK have been fairly stable in their markets. Mostly the big cities have seen speculation, especialy London, Paris and the big german cities. I am still googling around to find a nice home ownership percentage overview for Europe.....
Dude....They took the toilet seats????? What about the electrical outlet covers and radiator covers?
That reminds me of when we bought the house, the sellers where so eager to sell because they had found their new home and needed to close, that they agreed to a great price. Their purchase didn't make it through inspection and so they had to scramble to find a new home before we closed. I remember vividly their face when our lawyer told them at closing the daily rental fee he had come up with for them. I myself looked at him in disbelief.....dont have to say, they moved out quickly!
Current owner/occupier (e.g., home ownership) percentages in Europe, by country:
Spain: 81%
Greece: 80%
Italy: 80%
Ireland: 77%
Portugal: 76%
Luxumbourg: 70%
United Kingdom: 69%
Belgium: 68%
Finland: 58%
France: 58%
Austria: 57%
Holland: 54%
Denmark: 51%
Germany: 43%
Switzerland: 38%
Source: European Mortgage Federation (EMF)
I work in the mortgage industry in the UK headquarters of a large US company, and my job covers all of Europe - so I find out some interesting stuff.
For example, in France they do NO valuations on property for mortgage lending. Technically, the loan isn't secured by the property - the lender relies totally on the borrower's capacity to repay. (Crazy Frenchies...)
S_t_C
PS - Home ownership is indeed quite low in Germany, but this is in part due to the E.Germany effect and part cultural. However, it's changing rapidly with German lenders becoming more innovative in mortgage products.
Home appreciation in Germany has been stagnant for many years, so with no appreciation incentive there is less reason to own.
The french also require a physical of the buyer before a mortgage is granted.
Kitty, I am stunned by those numbers. I would have never thought that ownership was so important in so many European countries. The real estate business just doesn't seem to be that important over there....I learned something today!
What about the UK, do these ownership numbers only include freeholds or also leaseholds ?
Cashback,
Let's put it this way......
Anything "attached" to the structure is to stay with the house. The jackasses removed a bunch of stuff that that didn't amount to $20 in replacement cost, but was aggravating to have to fool with it. They did it to send a message they didn't appreciate the demand I made, and they agreed to, at the closing table.
I've got some catching up to do with Snowflake's Adventures in Stupidity. I read where G's cleaning houses to bring in some coin. Maybe I can hire her to come over to my house and give me a hand.
S_t_C,
What about tax treatments? Is there a VAT on sales? What are some of the mil rates?
Sweet:
The UK numbers include leaseholds as well, which are the case in the overwhelming percentate of flats (e.g., apartments). I've always thought leashold is a pretty whacked concept, and would avoid it like the plague - I've recently purchased a freehold house.
Indeed, home ownership isn't just the great American dream!
In Europe, though, (as a rule) people don't "upgrade" houses as often, because transaction costs can be quite high (stamp duty in the UK, notary fees in Italy, etc.) In fact, it's not atypical for a family to own only one house in the their lifetime in some European countries (particularly in Germany).
In Greece, a very high percentage of people own a holiday home as well...
S_t_C
Sorry, Dawg ... "mil rates"? You'll have to clarify...
As I mentioned in my last post, transaction costs can be very high. In the UK, for example, Stamp Duty is 1.5% for homes worth £125k and rises to 3% on homes over £250k. Ouch!
"mil rates" are annual property tax type assesments. I say type because there are all kinds of different things they can call them. FI; We have mosquito abatement and brush clearance and flood channel mantainence stuff that are taxes but called fees.
The 1.5%-3.0% transaction cost doesn't sound so bad when you consider that real estate agents are typically taking less than half what they extort in the US.
Oy, tax. Tax gives me a headache, and I avoid it (not avoid PAYING it ... I just hire someone to figure it out for me).
From the little I do know, I can tell you that there is NO capital gains tax on the sale of your primary residence here. The most onerous tax (apart from stamp duty) that I have experienced is Council Tax - the tax levied by the borough (e.g., County) in which you live that funds city services like rubbish collection, etc.
Also: no tax deduction for mortgage interest paid.
S_t_C
Looks like Casey's playing the "leak information on Flickr first to get the haters buzzing" game again. Builds anticipation for the next IAFF post.
Looks like it's working, too.
UK have been fairly stable in their markets
Oh no no no. I'm in the UK. Prices crashed by 25-30% in 1989-1993, stayed flat until 1999 and then went through the roof. Houses have trebled in the last 10 years whereas wages have only doubled. We have more "investors" in property now than ever before and we offer 6.5 x income IO loans. This sort of thing didn't exist 10 years ago. I am predicting a crash soon, partly because too many people are telling me "it's different this time".
Sputnik - which country do you reckon has the highest ownership of houses? My answer (if still true) usually surprises people.
France doesn't go in for stupid 100% loans and the like. You need a decent deposit and provable income before anyone will even consider you for a loan. Consequently they don't get Casey Serin types messing up their housing market.
Ireland is well mad. I have seen an ordinary 3 bed terrace (can't think what the US equivalent is) for €900,000.
S_t_C @9:12am
You may pay 1.5% or 2.5% Stamp Duty, but real estate agents don't expect a 6% commission in the UK -- unlike the US, where you may be able to negotiate it down to 4%.
You also don't have a crazy property valuation scheme like California has, whereby houses are valued at the price you paid for it plus the cost of improvements. It's common to see houses demolished except for 1 wall, and then re-built much larger, but becasue of the 1 wall, it is still an "improvement". With property taxes at 1.25% annually in many parts of CA, that can make a juge difference to one's tax bill.
So, in CA there are huge financial reasons to stay in one house and upgrade it instead of moving.
anon
UK agents will look for about 1-1 1/2% but then they are not licensed. Anyone can be an estate agent.
quite hate'in! ya'll foo's cant see me!
To: Arthur Wankspittle@10:53 AM,
Licensed? Maybe, but how difficult is it to get a license?
Also, there are rules in the UK that forbid actions by agents that I think they are able to do in the US -- for example, agents actually buying their client's house?
IMHO, agents in the USA are just leeches. Why do agents in CA expect the same 6% commission in CA as they do in TX, where similar houses cost 1/3 to 1/5 of the CA price?
Anyway, I bought my house in CA without the "benefit" of an Realtor. The house was a FSBO and I believe I got a good deal on it -- I paid under market, because the seller didn't have to shell out 6% to anyone. I believe it is only irrational fear that keeps realtors in business.
"This is my first international media exposure. Being international is good and all but things have been very crazy at home."
The Economist magazine cover story last month?
Casey at home; things get crazy.
Casey goes to Tahoe; things get crazy.
Casey goes to Phoenix; things get crazy.
Anyone sensing a pattern?
Licensed? Maybe, but how difficult is it to get a license?
I agree, but it's a start. Now who can we think of who has just enough brains to get a license?
Also, there are rules in the UK that forbid actions by agents that I think they are able to do in the US -- for example, agents actually buying their client's house?
Not illegal so long as you tell them you are interested in buying it. I would suspect all transgressions are civil not criminal.
@anon 11:13
Not only fear but realtors(Tony Soprano excluded, as he has ethics) also hold a tight grip on the MLS and use that to their advantage. They also have been know to boycott FSBO houses even IF it meets the criteria of their potential buyers. Yes they have expenses for advertising, but man, if they used 15K for advertising, they ahave to learn how to advertise better. Realtors don't SELL people on houses, the house sells itself. If I think a house is crap, I don't care what the realtor says in terms of it's good points.
Mr. Wankspittle,
yes, a majority of Germans rent. THough not German, so do I - and the rent hasn't increased a dirty cent or a clean pfennig in 10 years.
Because renters are actually a larger voting block, their rights are quite respectable - not really imaginable in an American context.
On the other hand, German rental units tend to lack minor things like kitchens - yes, here you generally do bring the kitchen sink too.
@ stern
I was reading on another site that it can take 5 years to get a tenant out. Certainly not the "American Way". It seems partly cultural, partly tradition that the Germans aren't mad keen on owning their own homes. Also affected by the relatively high price in year gone by.
@ S_t_C:
Oy, tax. Tax gives me a headache, and I avoid it (not avoid PAYING it ... I just hire someone to figure it out for me).
I've got it! Casey can hire somebody to pay his taxes for him! Shirly he can find a greater fool. Sweet!
Mr. Wankspittle,
ah, the joy of getting rid of the renters. Also not well understood in American terms, where you can boot a family to the street without difficulties - nothing like homeless children to prove how well a free market works.
Germany has a concept of 'Kundigungsfrist' in most contracts, not only rentals, but for labor contracts (yes, hire and fire is also impossible in Germany, apart from the 'Probezeit' or trial period in the first 6 months of employment - and labor is regulated by contracts, not employer whim), insurance, or any wide number of services.
The Kundigungsfrist is essentially the idea of giving fixed notice - often only on a fixed quarterly schedule. So if I have a Kundigungsfrist of 6 months, quarterly, giving notice on April 2 means the contract essentially ends Dec 31. Obviously, if both parties want to modify this, there is no difficulty, but one party cannot change it.
And rental contracts have several additional frameworks, especially the 'social' component. For example, rent increases are capped - rent cannot be raised beyond a legally determined amount for existing tenants, while new tenants, however, are in a free market. This may start to explain certain aspects of the rental framework, obviously, at least in terms of attempting to limit a landlord's greed.
Another element is children - families receive much better protection from a landlord in terms of knowing that they will have sufficient time to readjust their lives. (Germans move much less often than Americas.)
As someone who knows a number of people in the German real estate/building industry, 5 years is extreme, though completely imaginable. A made up example - 72 year old woman living in the same rented small house for 6 decades who is crippled and expected to die in three years would be very hard to evict, especially if the reason was because the owner wanted to build a car garage for his collection of motorcycles - being this Europe, the mere fact that an owner wants to do something is not sufficient justification when it involves other people. No masters of the universe in today's Germany, that's for sure.
Yes, I know, this is why Germany is such a morass of unsustainable economic practices, this being just another step along its inevitable decline to a socialist hell.
Except surprisingly, the land where the metalworkers union just got a 4% raise because the German economy is doing so well as an exporter, because the workers feel the ones doing the work have as much claim on the profits of the labor as any shareholder, doesn't get much press in the English speaking world.
Or is actively distorted - check out how unemployment is measured in Germany compared to the U.S., for example, and then notice that particulary the U.S. media always compares the strict German standard to the lax American one. The OECD comparison of unemployment is enlightening, especially when factoring a couple of additional points such as East Germany, and the role of prison populations (including the prison industry itself).
I guess if land in Germany becomes dear, there's always Poland, the Rhineland, and the Danzig corridor.
Look out Europe, we going on tour!
So much for the American Dream
There was a slight decline in homeownership rate in 2005 from the recent high recorded in 2004, according to the Housing Vacancy Survey, conducted by the US Census Bureau in conjunction with the Current Population Survey.
The home ownership rate for 2005 was 68.9%, down slightly from the recent high of 69.0% recorded in 2004. The 2004 rate was the highest rate since the Census Bureau began reporting these statistics in 1965.
By region, home ownership in 2005 was highest in the Midwest at 73.1%, followed by the South (70.8%), the Northeast (65.2%) and the West (64.4%).
The state with the highest home ownership rate in 2005 was West Virginia (81.3%), followed by Mississippi (78.8%) and Alabama (76.6%). The state with the lowest home ownership rate in 2005 was the District of Columbia (45.8%), followed by New York (54.8%) and California at 59.7%.
When I lived in Holland, rents were firmly fixed. But strange layouts...stacked washer/dryer stood right behind the 'shower' which was designated by two inches of raised tile with a plastic curtain pulled round. The drain was very slow and I always feared electrocution.
Another friend in town had a similar setup (raised tile/shower curtain) in her kitchen, right next to sink/stove...but the curtain hid the *toilet* To me, this made her dinner parties awkward.
A south african friend was coming to visit me and since she was hiking in nepal for several months before, I agreed to accept her mail at my flat until she arrived. I immediately got a 'tax bill' from the gov for my 'additional occupant.' Seems the dutchies don't understand the term 'mailing address.'
Why can't my cat be smart like Sputnik? Everything is "meow meow" out of him.
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