{"id":22354,"date":"2016-12-27T15:42:07","date_gmt":"2016-12-27T20:42:07","guid":{"rendered":"http:\/\/olduvai.ca\/?p=22354"},"modified":"2016-12-27T15:42:08","modified_gmt":"2016-12-27T20:42:08","slug":"when-assets-such-as-real-estate-become-liabilities","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=22354","title":{"rendered":"When Assets (Such as Real Estate) Become Liabilities"},"content":{"rendered":"

When Assets (Such as Real Estate) Become Liabilities<\/a><\/h3>\n

December 27, 2016<\/p>\n

It will be the middle class that accepted the notion that “real estate is the foundation of family wealth” that will be stripmined by higher taxes on immobile assets such as real estate.<\/i><\/p>\n

Correspondent Joel M. submitted an article that struck me as a harbinger of the future:<\/b>\u00a0In Greece, Property Is Debt<\/a>:<\/p>\n

“At law courts throughout Greece, people are lining up to file papers renouncing their inheritance. Not necessarily because some feckless uncle left them with a pile of debt at the end of his revels; they are turning their backs on what used to be a pillar of Greece\u2019s economy and society: real estate.\u00a0<\/i><\/p>\n

Growing personal debt, declining incomes and ever higher taxes as Greece\u2019s depression grinds on have turned property and the dream of easy money into dread of a catastrophic burden.<\/i><\/p>\n

After many years in which only very valuable properties were taxed, many Greeks went from paying almost no taxes on real estate to not having enough money to pay.\u00a0<\/i><\/p>\n

In 2010, property taxes accounted for 0.26 percent of gross domestic product, while this year they are around 2 percent, according to state budget figures.\u00a0‘Suddenly, the state treated the Greeks as if they were rich, at the precise moment that they ceased to be rich.’<\/b><\/i><\/p>\n

Among the many disruptions of the past few years, this one shows how traditional conceptions \u2014 and a sense of security \u2014 can be shattered. With a history full of wars, bankruptcies and rampant inflation, Greeks had always seen land as a haven.<\/i><\/p>\n

But it is private debt \u2014 at 222 billion euros last year \u2014 that may prove an even greater danger. This shows in government revenues. With the unified tax, ownership of every kind of property is now subject to taxation.<\/i><\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

When Assets (Such as Real Estate) Become Liabilities December 27, 2016 It will be the middle class that accepted the notion that “real estate is the foundation of family wealth” that will be stripmined by higher taxes on immobile assets such as real estate. Correspondent Joel M. submitted an article that struck me as a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[39,127,195,380,1167,4924,10080,668,783],"class_list":["post-22354","post","type-post","status-publish","format-standard","hentry","category-economics","tag-assets","tag-charles-hugh-smith","tag-debt","tag-government-debt","tag-greece","tag-oftwominds","tag-property-taxes","tag-real-estate","tag-taxes"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22354","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22354"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22354\/revisions"}],"predecessor-version":[{"id":22355,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22354\/revisions\/22355"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}