Q: How is a house like a farm? How does it produce an income?
A: When I flip it or when I rent it to tenants.
1. abandoned houses (farms)
http://www.mint.com/blog/finance-core/modern-day-ghost-towns-of-abandoned-real-estate/
The cities here aren’t entirely deserted, of course, but they are examples of the cities that have been hit hard enough to lead residents to abandon their homes.
Riverside County, California
...these houses were purchased by many people who wanted to buy bigger homes for the buck than they could get in LA and the OC, which of course led to an increase in speculative building and investing. It is estimated that in 2005, only 15% of area homeowners could actually afford their houses, with the remaining 85% living beyond their means or in adjustable rate mortgages that had not yet adjusted. The latter, once adjusted, would then prove to be unaffordable.
North Los Angeles County, California
...Today, in Antelope Valley, for example, it is not unusual for long-term rental property owners to have to deal with tenants who recently lost their own home to foreclosure and are having difficulty getting back on their feet. In some cases, tenants do everything from the typical stripping of copper wire to be sold to the more bizarre use of cabinets for firewood.
Phoenix, Arizona
...Understandably, home owners are deciding to walk from their mortgages if the home they just agreed to buy for $350,000 is now only worth $270,000. As a result of the frustration, homeowners are removing everything they can from the homes before they abandon them, selling appliances, cupboards and virtually everything else, including the kitchen sink.
2. consider the Roman's
http://www.lewrockwell.com/orig8/schmidt8.html
In the West, population declined in the countryside as farms were abandoned and become unprofitable due to onerous taxation, this population decline coming before the collapse. When the empire was no longer able to control its borders due to lack of funding for troops (and diminished population of citizens), it hired German mercenaries paid with land. Eventually, with nothing gained from central control and no order supplied therefrom, the Romans suffered a "crisis of legitimacy of the state," and the last emperor was retired by Gothic tribes.
3. in light Joseph Tainter laws - how does this relate to collapse?
- a reduction in complexity - a collapse - is more economical
- the home owners experience negative returns on increased investments in complexity
- from Tainter's the collapse of complex societies page 145 - "In some provinces under Valens (364-78) from 1/3 to 1/2 of arable lands were abandoned."
A: When I flip it or when I rent it to tenants.
1. abandoned houses (farms)
http://www.mint.com/blog/finance-core/modern-day-ghost-towns-of-abandoned-real-estate/
The cities here aren’t entirely deserted, of course, but they are examples of the cities that have been hit hard enough to lead residents to abandon their homes.
Riverside County, California
...these houses were purchased by many people who wanted to buy bigger homes for the buck than they could get in LA and the OC, which of course led to an increase in speculative building and investing. It is estimated that in 2005, only 15% of area homeowners could actually afford their houses, with the remaining 85% living beyond their means or in adjustable rate mortgages that had not yet adjusted. The latter, once adjusted, would then prove to be unaffordable.
North Los Angeles County, California
...Today, in Antelope Valley, for example, it is not unusual for long-term rental property owners to have to deal with tenants who recently lost their own home to foreclosure and are having difficulty getting back on their feet. In some cases, tenants do everything from the typical stripping of copper wire to be sold to the more bizarre use of cabinets for firewood.
Phoenix, Arizona
...Understandably, home owners are deciding to walk from their mortgages if the home they just agreed to buy for $350,000 is now only worth $270,000. As a result of the frustration, homeowners are removing everything they can from the homes before they abandon them, selling appliances, cupboards and virtually everything else, including the kitchen sink.
2. consider the Roman's
http://www.lewrockwell.com/orig8/schmidt8.html
In the West, population declined in the countryside as farms were abandoned and become unprofitable due to onerous taxation, this population decline coming before the collapse. When the empire was no longer able to control its borders due to lack of funding for troops (and diminished population of citizens), it hired German mercenaries paid with land. Eventually, with nothing gained from central control and no order supplied therefrom, the Romans suffered a "crisis of legitimacy of the state," and the last emperor was retired by Gothic tribes.
3. in light Joseph Tainter laws - how does this relate to collapse?
- a reduction in complexity - a collapse - is more economical
- the home owners experience negative returns on increased investments in complexity
- from Tainter's the collapse of complex societies page 145 - "In some provinces under Valens (364-78) from 1/3 to 1/2 of arable lands were abandoned."
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