reply to post by DaTroof
"Property Value" is completely imaginary. A property is worth the materials and labor used to create it.
C'mon now... that obviously isn't true. How in the world can you think that? Property Value certainly isn't imaginary, though it can be subjective
so perhaps imaginary in that sense of the word. Your context appears to not mean it that way though.
Property is worth what the buyer is willing to pay to the seller. The material and labor involved obviously has a role in the matter but they are
just factors. Location is another factor. Hundreds of factors could exist in any given situation. The property value is the assessment of all
factors that both add and decrease value to an individual. Each individual will value those factors differently.
Those most concerned with property value are those looking to profit from home sales and/or those who wish to use their equity for loans.
Profit motive, the great bogeyman huh... obviously property value is of concern to those purchasing as well, even if they never intend to make a
profit. Why shouldn't people profit from selling their homes? You know, people use the equity to send their kids to school, support their parents
in their old age and other great things for society, they are not just stacking coins and buying luxury items. Profit is capable of great things.
Profit can turn a person born to poverty into the greatest philanthropist. Profit is what keeps families fed and children in school.
Sorry,but I'd rather live in a world where everyone can have shelter, rather than one where people use shelter for profit. (Not counting hotels)
Than I imagine you will be happy to hear, you do live in a world where everyone can have shelter, even those with no money have options, though they
are not always very ideal, I admit. Heck, some places even pay you to live there. I suppose you mean a world where everyone has their dream house or
a home that they find more than suitable.
I would like to live in that world too, the problem is that nobody can make everything they need, they have to rely on someone else to make things for
them, the people that make things for them deserve something for their time and effort. Money was created to serve this purpose. For this world to
exist we would have to find another way to compensate people for their time and effort. What is your suggestion?
Also, competition will always exist for the most sought after homes. In this utopia, how would people decide who lives where? Money has to be a
factor. The only other way to do it would be to have a judge deciding who deserves to live where. You want a judge to tell you where you deserve to
live? What if you did not agree with them? Wouldn't you rather decide for yourself? That is where money comes in or your new suggestion on how
people should be compensated for their time and effort. No system of deciding can be perfect but then again life isn't perfect either and certainly
Home prices now, when compared to the devalued dollar are much more realistic than home prices pre-recession.
Ah Ha! I knew we could agree on something!
The less money spent for shelter, the more can be used for everything else. That alone will help the economy more than any bailout, tax cut, refund,
or other financial trick.
You are ignoring what a large portion of the workforce has been and would be employed by the housing market. The less money spent on homes, the less
money people earn, the less they have to spend. Unfortunately, the money just doesn't transfer somewhere magically, it still has to be earned by work
to be spent anywhere else. Property value has a large influence on what that work pays and how much of it is available.
edit on 5-4-2012 by sageofmonticello because: (no reason given)