Sunday I am currently building a home, they broke ground in July and it is scheduled to be completed by mid Feb. No, to your questions, I saved a long time for this home and my current home is paid off and I will use the proceeds to the new mortgage.
maus Blasting right ahead, just because Washington can't figure out finances let alone come anywhere close to getting anything done,
doesn't mean I can't. Rates are low and if you are not taking advantage of them keep warming the fences...I'm swinging for them.
inkwitch Having bought my first house at 66 and being lucky to have a job at all, I have limited time to get it renovated. I"m just thankful the house is paid for. I'm racing the clock and Washington's stupidity. I wonder what the government and the nation's condition would be like if mothers were running things. Knowing what I do about the last 5000 years of history, I have concluded men are psychologically unsuited to run a government or a world.
lesliemahler We are building a new home to be finished in May. It will be mostly financed by the sale of our current home, which has no mortgage. I feel grateful to be in this position and also grateful to, in our own small way, contribute to construction jobs. When we (all of us) build and remodel, people work.
groveraxle I embarked on a major remodel in April, and when that was finished, added two more jobs. Having been frugal all my life, I've paid for everything from cash on hand. Like lesliemahler, I also am glad to be in a position to employ some people in this time of hardship. So no, I'm not worried about the fiscal cliff.
ikwewe Because we ALL share the burden, each person's share will be affordable. If we can afford to renovate now, we should be able to continue the project. Maybe it will lead to more prudent planning and reuse of available resources rather than destruction and waste.
Paradise Restored Landscaping & Exterior Design Hate to adopt a "wait and see" attitude but in the end, it is all we can do - however, around here we always believe in keeping it positive . . . !
k1216west We were planning to finish our basement with Christmas bonus but have decided to hold onto it and wait and see what our tax bill will look like in the years to come :-(
Custom Home Planning Center Macro finance is another of my areas. Housing will continue up through out 2013 and into 2014. If you can afford to build do it now.
The financial cliff is a news story and not a real problem for the country. There are a substantial number of times in our economic history that we have had a strong economic growth with taxes higher and cost of government lower.
China and developing countries are still growing at a good clip even it isn't as high as it was. (which is good as it holds down inflation and interest rates)
If you don't know about tarp warrants your missing the only profit sharing program the federal government has ever created.(we as tax payers made a bundle on Tarp loans, now you can do as well individually with these publicly traded long term stock options that don't expire until late 2017 & 8) Do a web search. Not any riskier than owning the banks directly, but on average returning in excess of 30% a year.
janiceandjohn We have literally been building our retirement home for 3 years now and are nearing completion. There are some things we would like to do that will probably be delayed a bit, but we don't plan to stop, probably just take an "inspiration break" over the winter and jump in again next spring. Even though we've done much of the work ourselves (which explains the 3 years), there is still bank financing involved, so this will keep us working at our real jobs longer than we had hoped. We are not building to sell later, so whatever we do will probably be what we have for the rest of our lives!
I just love the inspiration from Houzz! We were also inspired by tiny houses to downsize, so there has been much care and planning that has gone into our home. It is under 2000 sf and has a pretty small footprint. We've used a lot of natural and re-purposed products and hope that it will be very low maintenance. It reminds me of a cottage on the front and a cabin on the back, so we nicknamed it our "cabbage".
We have blogged it from the beginning, and if anyone would like to take a look, our web address is buildingourtimberframe.com/sutton/
shellycco I have to say that we "are" holding off on some projects until we find out more about the decision on the fiscal cliff. Rather than taking the money out of savings to work on our next project (we've redone both bathrooms this year and completely gutted and remodeled our kitchen last year), we are just going to hold onto it for the time being. Both of our jobs could be affected by the "sequestration", so we are saving every penny.
If you think this doesn't affect the average American, you need to do some homework. some of the things that would affect EVERY American: if you are married, you no longer get a tax credit. If you have kids, the $1000 tax credit you get for each dwindles to $500. Obama gave a decrease in how much you pay into social security (doesn't make sense since that fund is almost broke) currently at 4.2%...it would go back to the 6.2% pulled out of your pay check. Every single tax bracket automatically increases 3%, so if you are currently in a 25% tax bracket, your taxes increase to 28%. Those are the basic things. There are other things involved as well, but these are easy ones that everyone can understand, right?
So, unfortunately, these things do affect whether or not I'm going to do my part to try to stimulate the economy...mostly, because my job is on the line, I'm saving my pennies. The new entry door system and exterior paint job can wait until I feel more confident.
Tom Trial Everybody should have their work done before the BIG crash, the US is Bankrupt. WIth the Fed printing trillions of dollars expect massive inflation. Everything happening in Greece will happen in the US.
This article explains the "Fiscal Cliff" clearly.
http://www.sovereignman.com/expat/i-apologize-for-what-youre-about-to-read-9397/
Custom Home Planning Center The lemming has arrived . Tom, if you are adamant on doom and gloom you should look at Pro Funds bear double and triple leveraged funds and profit from your own advice.
Tom Trial No lemming here. I have known about the US true financial condition long before the msm jumped on the "fiscal cliff" story.
Real Estate, Farm land and tangible things like precious metals, art, wine should be among the safest investments going forward for retaining value. I have a friend who bought 1,000 acres in Chile with a working Farm and is subdividing the non-farm area. The farm produces during the north american winter so picks up an extra 35% profit over the traditional season.
Fiat products like US & EU currency, stocks ect. are for lemmings. And I have profited nicely over the years trading 3x eft's.
Custom Home Planning Center Like wise on profund etf and did 150% on the tarp warrants in their 1st year, Kid's have a few K acres in farm land as well, but I don't share your macro analysis for depression conditions.
Penny Most Americans are completely uneducated about the effect of government debt. Are you? Do you know who holds the debt? Do you know what the effects of default are? Do you know what the alternatives to default are? Do you know what quantitative easing really means? If not, you should educate yourself. Do you know what the effect of reducing interest rates is to the responsible people who save? Do you know what 'rich' people do with their money and how this affects the economy? Does the quantitative easing create another investment bubble similiar to the housing crisis? If only Americans would educate themselves!
lakemomof4 We have a family business and when the kids could understand we started having discussions about money. During elections we have detailed discussions at the dinner table on politics. They ask questions they research the issues. One is a history major. They understand government and if they don't we look it up! I will say they were raised with values that encourage independence and taking care of yourself. We are christian and so they do consider their religion in their decisions in life. But, at the same time, if they were able, to take care of others. They learned along the way how to work hard, be charitable, how not to be an enabler and how to look out for themselves. They are still young adults but and my point here: NONE of their friends know anything about politics, many do not believe in God and most voted their emotions not their intellect. PARENTS need to step up because the world will be in their hands soon. I am not afraid to say this administration's policies run counter to all of my family's values. AND another four years of the same does have us pulling back on hiring and spending, has us liquidating. And I wish people understood that alot of little old ladies (some of our former employees) with their retirement in the stock market are millionaires, they just don't make a millionaire salary. And, even though they won't be taxed they have lost alot of $ in the past week worrying about the fiscal cliff, the taxes on their investments etc. Education is key.
statsrs2 I'm a small business owner (machine shop with 10 employees) who is scared to death. As a partnership, we don't take wages or salary, our income is the net profit of the business. It is well in excess of $250,000, which we pay individual tax rates on (we pay nearly 40% in federal, state and local taxes already), but there is no way we can take that money out of the business and keep it financially strong. We have slowed our growth based upon the unknown of the tax consequences going forward (as well as the unknown affect of the new health care law (my new contract year health plan for my employees is going up 20% as of 12/1). I have several remodeling jobs here at home that I have put on hold pending the outcome of what is bound to me higher tax rates we will have to pay going forward.
sylvestercat Well, I am not the educated. But I have had and lost twice in my life. I find myslef wondering what kind of homes you have, and what your remodle plan consists of. I have purchased a house with a no money down VA loan, the county law, insisted that the wood stove be removed for EPA reasons. We don't really have the money to put in a new certified wood stove, so are we going to freeze this winter? It is going to cost about $3500 to replace it, and the fact that the house has 40 year old green shag carpet, makes my skin crawl. So there are projects and there are projects.........
I couldn't continue to pay $1200 a month on rent, so now I am paying $800.00 to own...... over $200.00 in property taxes. And PROJECTS to make the house liveable. . . . I am retired and on social security.
shellycco Sylvestercat...my husband and I own a 1968 bilevel home...about 1800 sq ft...very modest by today's standards. We boutgh tthe home just over 7 years ago and our basement still has orange shag carpet. While everyone was out buying what they couldn't afford, at the top of the market, we told our lender how much we wanted our mothly playment to be rather than having them tell us we could afford more than we really could, and we stayed within that limit. Today, our salaries have basically doubled and we could go take advantage of the interest rates and get something a bit bigger (we don't need much more), but because our jobs could be affected by the upcoming sequestration, we are just staying put. I can go on to tell you that our home was very much in 70s/80s style, but the landscaping and the "bones" of this home were in great shape, compared to some of the 1990's home we looked at. So, over the years, we've rebuilt our deck, we've rebuilt our privacy fences, we've repainted the interior upstairs. Over the past few years (after saving money) we've finally updated the kitchen and our bathrooms. We still live with the orange shap carpet. A home is a work in progress!
So my question to you is, did you know about this before you committed to this mortgage? I"m surprised the VA would let you purchase this home with this issue....
6157 A vast majority of this poll are either holding back or eliminating an improvement to a home. This is a perfect example of how the flawed policies of the Democrat Party and President Obama are wrecking the American economy in the name of so-called 'fairness'. Life's not fair. Get over it.
DrJacque W The majority are saying that if people are responsible, it doesn't matter. But again, R don't attend to data-- hold to a belief rather than evidence.
stargazer51 I disagree that most posts talk about scaling back or delaying projects. Many said they saved for the work and are going ahead, as we are. Might as well buy all those materials before they get more expensive.
I'm a bit disappointed at Houzz for initiating a discussion that would predictably turn political.
Mary Young Yes, The thought of increased capital gain on even a" "projected" $30 to $40,000 yearly profit, does make me hesitate. An extra 10 to 25% tax bill on this profit tells me why go through the 8 month hassle. It is to big a risk to start out. Which is to bad because there still are alot of affordable homes that need rehabbed and to be sold out again at affordable prices. Especially when city fees are at least 10% of costs, Closing costs average 10%. Bank loans, increased material costs. Less and less is going to the hired craftsmen or the risk investor/sweat equitor. So yes. Keep the capital gain tax off of lowwww income earner!!!! Mustang
6157 How sad that Ms. Ward can count. As far as things sinking into the plitical, well, too bad. It's life and that's that. The naivete of the liberals on this blog is as irritating as the liberals in D.C.
DrJacque W I was not the one who posted concern for this going political. But you have made it clear that R can't read either. They stay in their own melodramatic fixated ideology instead of studying and moving forward with new and consistently changing knowledge-- being progressive is no sin; it is in fact being educated enough to question old ideologies. Although I do agree with intoit, this initial string only bodes to the right-wing fear tactics that have led to destabilization.... the only one who ever left the 'head-office' with a surplus budget was a Democrat; also the only ones who have ever been willing to work across the aisles. Sad that you do count, but that is what America is created for; to share opinions even when they oppose our own. But at least one of us is intelligent enough to accept that fact.
Custom Home Planning Center While I agree most people don't understand the ins and outs of finance and they should continue to become educated as it is increasingly important. I've been providing that kind of training for the last few years a personal financial trainer at 1/10.000 of inestimable assets an hour, the Macro understanding is quickly learned. Inductive Macro analysis is simply understanding how the driving forces in the world shape our economic futures.
judyg I don't have anything to postpone. We built our home 4 years ago and it needs nothing, T G. I am not seeing, yet, any indications that folks in my community are rethinking any projects. Right now, remodeling is big! A direct result of a bad real estate market and people decided to renovate? I guess. We live in an area of the state with a huge retired population. I don't know anyone without S.S. and at least one pension. And no mortgage. But, this is after a lifetime of work, saving, much lower home prices when we were younger, enabling us to size up. So, we certainly are not indicative of the rest of the country.
I strongly encourage my single daughter to be very cautious and resist any form of debt. She works two stressful jobs. She and we have advisors, and it's a good thing as I couldn't contribute anything to the above conversations, except keep a good credit rating, stay out of debt and continue building that emergency fund.
Learned a lot here, which I think Houzz intended. My best wishes to all.
asbdk, I could say "yes" to most of your questions. Will research those I couldn't answer.
janiceadjohn, great house! We had a post and beam awhile ago, it was just way too big for us. We put radiant heat in this new one and it has been wonderful. Just keep it set at the same temp all the time. The garden window is a wonderful idea. When the Fall arrives, I miss my fresh basil.
Emily Hurley Hi everyone. Let's remember to keep it polite. This isn't really a place to get into the foibles of disparate economic policies of the political parties in the U.S. It is, as they say, what it is.
Rather, looking forward, how you are personally budgeting for your own immediate projects and has your plan been impacted by the possibility of the changes in January?
jwade1085 You (we) can all be financially responsible, something our government seems to know little about. I would be very careful not to over extend on any purchases now or ever.
Marq Goldberg The so called "fiscal cliff" is just right wing hype. Worst case scenario is that the two parties aren't able to come to an agreement and automatic spending cuts go into effect and the Bush tax cuts sunset. They NEVER should have been put in place to begin with. This will not effect Social Security, Medicare, or food stamps unless Obama "compromises" again. If we do go "over the cliff" it will just mean that those Republicans who signed a pledge to Grover Norquist not to raise taxes on the rich (no matter how obvious it becomes that we should) will be free to offer a middle class tax cut without having to make tax cuts for the parasitic class the priority. Bottom line is nobody should let this right wing nonsense affect any decision they make about anything.
Marq Goldberg BTW to the guy who was concerned about his taxes going up on his $250,000 a year profit business. Your taxes would ONLY go up on the part OVER the $250K not on the full amount. You do know that don't you? Why are you slowing your business growth? Sounds like you've been getting some VERY bad advice.
judyg olldbob, Came along with Andrew Jackson, as he was described as a "jackass".
Thomas Nast, a political cartoonist drew a donkey decked out in red white and blue to represent the Democratic Party. Today Democrats embrace the symbol of the donkey, a humble working beast, intelligent, courageous and tenacious in the pursuit of democracy.
Marq Goldberg shelly once the Republican pledges to Grover Norquist are invalidated by "fiscal cliff" automatic tax increases the matter will be resolved VERY quickly. Your article is irrelevant. That road will NOT be taken.
The only thing we have to fear is fear itself. Which, not coincidentally, is the only thing the GOP has left to sell.
judyg Nast invented another famous symbol—the Republican elephant. In a cartoon that appeared in Harper's Weekly in 1874, Nast drew a donkey clothed in lion's skin, scaring away all the animals at the zoo. One of those animals, the elephant, was labeled “The Republican Vote.” That's all it took for the elephant to become associated with the Republican Party.
Democrats today say the donkey is smart and brave, while Republicans say the elephant is strong and dignified.
bobeeee,I looked this up as I never knew how this got started. I knew the symbols but didn't know about Nast. Ah, the power of the media…then and now.
Marq Goldberg Elephants are herd animals. Donkeys are independant. What I want to know is when did the GOP turn the stars in their symbol upside down and why? Upside down stars are satanic; the two points at the top resembling Satan's horns and the one at bottom represents his beard.
judyg So, Marq, back to the original question: Are you planning on putting any remodeling plans on hold due to the POSSIBILITY that there will be federal tax cuts? Sounds like you are continuing on with your plans? What have you got going on?
shelly, read the CNN article and I wanted to comment on one of the points. Thanks for the link.
Medicare doc fix Expires. Medicare payment rates for physician services drops by 27%.
I live on Cape Cod and we are losing docs every day because there are so many 65+ on Medicare that live in this retirement area. The docs can't afford to keep a satellite office open here. That means a 4 hour round trip to Boston for maybe a 15 minute visit (if you can get an appointment!) Two of the specialties really affected are endocrinology and dermatology (cutaneous); 65+= lots of thyroid, diabetes, skin cancer and melanoma issues. If indeed that CNN article is right on…Wow! It won't make any difference if you can pay out of pocket as there will no longer be anyone left to pay.
shellycco JudyG, thank you for refocusing the conversation back to the original topic...and I appreciate your comment above about what you are seeing in your area. Didn't realize this was a forum to bash other folks who may or may not have similar political viewpoints. I enjoy this website because it gives me inspiration for remodeling projects, but sure haven't enjoyed the past few posts.
Hopefully our lawmakers can work together to move our economy forward (which I am sure there will be some partial agreement, or they'll have a work around, which I hear may go into the Sandy bill, which works, but only prolongs the inevitable). In the meantime, I'll continue to save money for our next remodeling projects. We are also now looking into the possibility of refinancing again at low low rates, so there is always a silver lining!
Aggie Purvinska I will not have any money to remodel anything before or after the fiscal cliff, nor do I see myself ever making anything remotely close to 250K, but I like helping others with their remodels ;) Republicans and Democrats alike!
shellycco That's awesome that you are a designer, AggieDesigns! The original point to this was that dependent upon the agreement on the fiscal cliff, that it has a "possibility" of affecting the average American as well, not only those in the top tax bracket, though I'm sure to get some political rant now that I've posted this.
In what geographical area are your services offered?
Aggie Purvinska New York City, the company I work for is strictly serving the top 1%, and we have seen nothing, but an increase in the workload, elections, fiscal cliffs and all. Most of these folks do not put their plans on hold, they don't have to.
My own interior design practice outside of job is for people of all walks of life :) Most of them can't afford much above IKEA.
judyg Speaking of IKEA, my daughter designed and installed the most wonderful kitchen. On a budget, she picked the plain white front, IKEA hardware, a quartz countertop. She didn't do the appliances; forget why. She put all their inserts into the drawers, pantries, etc. I'll tell you it rivals my kitchen and she saved thousands.
Mercy Me Just when I thought I've seen everything, here comes a discussion on decorating and remodeling, for Pete's sake, that gets embroiled in right-wing political spin. Why is this even being discussed on an interior design website. For shame.
Mercy Me Shelly, I think you've got it wrong. The right-wing spin here is worse than my HE washing machine on high. I thought I had inadvertently landed on the Fox News website. The very term "fiscal cliff" is a political spin word as is the premise of the poll. This is extremely disappointing to see on Houzz, which I've always enjoyed reading. Until now. Moving forward.
shellycco I agree that the poll was destined to bring up political implications, but I don't believe it's Fox in nature...did you not see the posts above completely slamming the right wing? Regardless, it causes a headache.
Mercy Me, do you have any projects going on that you'd like to share?!
shellycco I agree that the poll was destined to bring up political implications, but I don't believe it's Fox in nature...did you not see the posts above completely slamming the right wing? Regardless, it causes a headache.
Mercy Me, do you have any projects going on that you'd like to share?!
Mercy Me Thanks for asking. We are pretty much through with the major stuff. But, here are some images of the kitchen and public areas we remodeled in 2007. Pix were taken this year, after most of the furnishings and finishing touches were added. I designed it; my general contractor executed it.
shellycco Congrats! It's lovely. I love the wall color. Do you remember the color choice? Also, out of curiosity, what type of front door material do you have? That is our next investment.
judyg So far, 341 feel no impact; 186 are cutting back; 322 feel a big impact. The builders, designers, retailers, etc, according to this poll will be affected, in some degree, by 508 voters. It simply could be that Houzz wants to be attune to houzzers' plans of action and include in idea books topics that will be of interest. I doubt that political agenda was intended.
Mercy Me Hi, Shelly -- We live in Central Texas, about 40 minutes northwest of Austin; hence the tile floors (Italian porcelain that mimics honed limestone.) The paint is Sherwin Williams Harmonic Tan with SW Muslin ceilings and trim for most of the rooms. Other colors and wall coverings are not shown. If I recall correctly, our door, with sidelights and transom, is a customized Jen-Weld primed fiberglass with beveled glass and insets of "rain glass; " no metal leading. That was a bear to install for the subs. The original door was ugly and off-center, so we ripped out the whole entry wall and custom-fit a new entry system. We also wanted all that lovely Texas light to pour in. The house glows like a lantern at night. Good luck on your door project.
shellycco I agree JudyG, I don't believe that it was intended to be political, but when current political buzzwords are introduced, something political in nature is bound to surface. I applaud you for mentioning facts, and for getting the conversation back on the right track.... the political rants can be saved for other venues... Houzz is an escape for creativity, not for insults.
maryandterry We have been planning to build a new home for about two years...working on custom plan, interviewing contractors, looking for property.....in the middle TN area just outside Nashville. We are ready to break ground now. Our contractor tells us there is so much building now that we are on a waiting list to get started. It may take as much at six weeks to get the property prepared and foundation in. Two years ago he had two houses going at once. Now he has five custom homes going at once! I think that sums up a lot.
sunsethomesllc maryandterry, middle tennessee is MUCH different than the rest of the country. Housing market never dipped as low as others, what dip there was has lasted much shorter of a period. That is why we are actively in the process of leaving Maryland, a high tax, solid Democrat state and have relocated to Middle TN, a strong Republican run state. Ahhh. Maybe now we can stay in business. Good luck with your build.
shellycco Thanks for the information Mercy Me. Looking to do some painting on the interior and a color like this is what I envision. I also appreciate your information on the entry door system. I can't wait to do something similar. Our entry (we're in a bi-level) is so dark and I cannot wait to see the difference in letting some of that Colorado sunshine in to brighten things up....therefore, we'll wait on the paint until the door system is in...new perspective!
statsrs2 To Marq: You comment addressed to me "BTW to the guy who was concerned about his taxes going up on his $250,000 a year profit business. Your taxes would ONLY go up on the part OVER the $250K not on the full amount. You do know that don't you? Why are you slowing your business growth? Sounds like you've been getting some VERY bad advice.
Marq: Where did you get your crystal ball, I could use one just like it. If the President has his way, he will allow all the Bush tax cuts to stay in place except for the rate on those above $250k, which will increase from 33% to 36%. So between me and my partner we will pay an additional $15,000 in federal taxes. Again, this 36% income tax is on top of the full 15% FICA tax, on top of the 6.35% State of CT income tax, on top of the townships personal property tax, on top of the 6% of paid wages for unemployment tax the company pays, on top of the excessive workers comp insurance we pay on top of the huge increase we are seeing because of the new health insurance regulations. Altogether that is well in excess of 50%. And as my original post indicated, we can only take as salary about half of that $250,000 profit that I pay all those taxes on. That is for working 60 to 70 hours a week. I would like to know, how high is "my fair share"? And does that number keep increasing as our government keeps spending at unsustainable levels? Bottom line, this is why our economy will suffer for years to come. Because nearly 50% pay no income tax and thus have "no skin in the game", so don't care on what or how much our country/state governments spend. Sorry to all for the long winded reply.
tessdon in four years we will see - unfortunately I believe we will not be placing the results in the pleasantly surprised category ... our plans are on hold
DrJacque W Well Shellyco- the right was the first to throw those insults and falsehoods... when I posted a reply to one- he suggested that it was a shame that "I count'. So it was not the left who started the drama here, but that one of us did decide it was time to move away from falsehoods. Statsrs2, I work well over 60 hours a week and do not make near nor ever will I make that kind of money because I am in a field that provides for the social good- education... The Bush tax cuts are a legacy that should have never been established and therefore should not even be a debate. Our economy is suffering for the policies that were taken post-Clinton who did have not only a balanced budget but a surplus before Bush Jr took over. Of course it will take years to repair the damage from his ridiculous policies that have negated our nation on all measures. If someone has to hold off on projects because of the 'fiscal cliff' a created term, then they should not have been considering any project in the first place if they are that 'close' in their financial margin. As an educational professional raising a family of six children, we have always had to budget, plan our renovations, put a little aside and pay off a bit more here or there until the risk was lessened to a reasonable level. When a family has to choose between feeding themselves or pay tax versus another person paying a few %age points more and not renovating, my buck is for feeding the family and let the other wait on renovations. Most persons work hard for what they get... the election banter suggesting those who don't make $250,000 are lazy is ludicrous and insulting to the majority of America. There are many of us who work more than two jobs to make ends meet.
Marq Goldberg DrJacque W don't these people just break your heart? Such hardship that they endure. Meanwhile 50% of the country don't even have to pay federal income taxes. All they have to pay is Social Security (on ALL of their income not just the first $110K that's about 12.4% you DON'T pay Shelly), state taxes, sales taxes, gas taxes, etc. before they can, hopefully, feed their children. You would think all the millionaires and billionaires were just STARVING before W Bush came along. For all their self pitty I have yet to see one who would trade places with a poor man.
Shelly I think the following men said it best:
THOMAS PAINE WROTE:
Personal property is the effect of Society; and it is as impossible for an individual to acquire personal property without the aid of society, as it is for him to make land originally. Separate an individual from society, and give him an island or a continent to possess, and he cannot acquire personal property. He cannot be rich. So inseparably are the means connected with the end, in all cases, that where the former do not exist, the latter cannot be obtained. All accumulation therefore of personal property, beyond what a man's own hands produce, is derived to him by living in society; and he owes, on every principle of justice, of gratitude, and of civilization, a part of that accumulation back again to society from whence the whole came. This is putting the matter on a general principle, and perhaps it is best to do so; for if we examine the case minutely, it will be found, that the accumulation of personal property is, in many instances, the effect of paying too little for the labour that produced it; the consequence of which is, that the working hand perishes in old age, and the employer abounds in affluence.
BENJAMIN FRANKLIN WROTE:
All property, indeed, except the savage's temporary cabin, his bow, his matchcoat and other little Acquisitions absolutely necessary for his Subsistence, seems to me to be the creature of public Convention. Hence, the public has the rights of regulating Descents, and all other Conveyances of Property, and even of limiting the quantity and uses of it. All the property that is necessary to a man is his natural Right, which none may justly deprive him of, but all Property superfluous to such Purposes is the property of the Public who, by their Laws have created it and who may, by other Laws dispose of it. whenever the Welfare of the Publick shall demand such Disposition. He that does not like civil Society on these Terms, let him retire and live among Savages. He can have no right to the benefits of Society, who will not pay his Club towards the Support of it."
(Scottsman) ADAM SMITH WROTE:
In a society of an hundred thousand families, there will perhaps be one hundred who don't labour at all, and who yet, either by violence, or by the more orderly oppression of law, employ a greater part of the labour of society than any other ten thousand in it. The division of what remains, too, after this enormous defalcation, is by no means made in proportion to the labour of each individual. On the contrary those who labour most get least. The opulent merchant, who spends a great part of his time in luxury and entertainments, enjoys a much greater proportion of the profits of his traffic, than all the Clerks and Accountants who do the business. These last, again, enjoying a great deal of leisure, and suffering scarce any other hardship besides the confinement of attendance, enjoy a much greater share of the produce, than three times an equal number of artisans, who, under their direction, labour much more severely and assiduously. The artisan again, tho' he works generally under cover, protected from the injuries of the weather, at his ease and assisted by the convenience of innumerable machines, enjoys a much greater share than the poor labourer who has the soil and the seasons to struggle with, and, who while he affords the materials for supplying the luxury of all the other members of the common wealth, and bears, as it were, upon his shoulders the whole fabric of human society, seems himself to be buried out of sight in the lowest foundations of the building.
And, finally, WARREN BUFFET WROTE:
Wealth is just a bunch of claim checks on the activities of others in the future. You can use that wealth in any way that you want to. You can cash it in or give away. But the idea of passing wealth from generation to generation so that hundreds of your descendants can command the resources of other people simply because they came from the right womb flies in the face of a meritocratic society.
I’ve had it so good in this world, you know. The odds were fifty-to-one against me born in the United States in 1930. I won the lottery the day I emerged from the womb by being in the United States instead of in some other country where my chances would have been way different.
Imagine there are two identical twins in the womb, both equally bright and energetic. And the genie says to them, “One of you is going to be born in the United States, and one of you is going to be born in Bangladesh. And if you wind up in Bangladesh, you will pay no taxes. What percentage of your income would you bid to be the one this is born in the United States?” It says something about the fact that society has something to do with your fate and not just your innate qualities. The people who say, “I did it all myself,” and think of themselves as Horatio Alger - believe me, they’d bid more to be in the United States than in Bangladesh. That’s the Ovarian Lottery.
Darzy Holy Smokes! I wish there was a dislike button too. BTW, I do love a good "healthy" conversation and do not mind this topic on Houzz. But, if the comments are upsetting or uncomfortable, we do have the email option to "stop nofitifications" on this topic only.
shellycco "DrJacque W
The majority are saying that if people are responsible, it doesn't matter. But again, R don't attend to data-- hold to a belief rather than evidence."
You clearly initiated the "political discussion" in this thread by writing this but then you say the right began this?
Have a nice day everyone and be THANKFUL for what you do have.
6157 A significant number of people are holding back on this and other economic decisions due to the flawed policies of President Obama. That is why the economy is in the conditon that it is and is likely to remain so for years to come (oh, excuse me, it's really George Bush's fault - puhleeeze). As to whether this is political or not - et over yourself. It is as are most discussions in life.
Emily Hurley Judy is correct. Open up any comment notification from a discussion on Houzz and you will see two links at the bottom. One will stop notifications on only that discussion. The other will stop them on all discussions. Hope that helps!
Marq Goldberg Well I'd just like to wish everyone a wonderful Thanksgiving. After dinner my family will be gathering in front of that great classic movie, "It's A Wonderful Life" with Jimmy Stewart. I HIGHLY encourage everyone to tune in. Yup, that's a movie with a message that's just as important today as it was when it came out.
thekonagirlz Whatever your political standing it is a great time to build or remodel if you can afford to do it. We don't have a lot of money but we managed to buy a little land with cash for a song... and for a dance we have been buying new items off of Craigslist and from local contractors, overstock items, etc. Now we have most of a house package. Loan rates are low. Many contractors still need more work. Seize the moment if you can.
Good Luck to All :)
Wishing You Happy Holidays !
Heidi Ross No to your question because we pay cash for what we do. I like owning the floors I walk on- not pacing them trying to figure out how to make a payment. As to the fiscal cliff, I'm a historian so I make sure i know the facts and give little credit to media spin. Decisions made on sound bites are never a sound fiscal practice.
inabunker Yes, somewhat afraid of the cost of goods and the sales tax and any new regulations passed that will cost us more to build/remodel. (I live in California and prop 30 passed raising all of our taxes). I also wonder how many more businesses are going to leave this state due to the anti-business climate of our legislature in Sacramento.
I will go ahead with the large remodel, but will really have to watch our pennies.
rockinrobin68 Going ahead with my kitchen remodel as planned, and being financially conservative about it as usual. Not upgrading beyond my neighbors. I've researched that my middle-class neighborhood prices have stabilized (for now). I bought my current house below market value (at the "bottom"), and even after my remodel there is adequate buffer. Paying for the remodel with cash. That's the way to do it, not matter if economic times are good or bad.
lclark As I recall, I have paid taxes under every administration since 1967.....and I was fortunate enough not to live in a tent before the Bush tax cuts, and I will not be in a tent after. Our country went to war, actually 2 of them, and we cut our taxes. When in history does a nation do this? We must now pay for those wars, and I do not want to pay for them on the backs of the poor, the old, or the sick. If the fiscal cliff is keeping you up nights, you must be making tons of money.....and that remodel should not be a problem.....blessings....
1170
doesn't mean I can't. Rates are low and if you are not taking advantage of them keep warming the fences...I'm swinging for them.
The financial cliff is a news story and not a real problem for the country. There are a substantial number of times in our economic history that we have had a strong economic growth with taxes higher and cost of government lower.
China and developing countries are still growing at a good clip even it isn't as high as it was. (which is good as it holds down inflation and interest rates)
If you don't know about tarp warrants your missing the only profit sharing program the federal government has ever created.(we as tax payers made a bundle on Tarp loans, now you can do as well individually with these publicly traded long term stock options that don't expire until late 2017 & 8) Do a web search. Not any riskier than owning the banks directly, but on average returning in excess of 30% a year.
I just love the inspiration from Houzz! We were also inspired by tiny houses to downsize, so there has been much care and planning that has gone into our home. It is under 2000 sf and has a pretty small footprint. We've used a lot of natural and re-purposed products and hope that it will be very low maintenance. It reminds me of a cottage on the front and a cabin on the back, so we nicknamed it our "cabbage".
We have blogged it from the beginning, and if anyone would like to take a look, our web address is buildingourtimberframe.com/sutton/
If you think this doesn't affect the average American, you need to do some homework. some of the things that would affect EVERY American: if you are married, you no longer get a tax credit. If you have kids, the $1000 tax credit you get for each dwindles to $500. Obama gave a decrease in how much you pay into social security (doesn't make sense since that fund is almost broke) currently at 4.2%...it would go back to the 6.2% pulled out of your pay check. Every single tax bracket automatically increases 3%, so if you are currently in a 25% tax bracket, your taxes increase to 28%. Those are the basic things. There are other things involved as well, but these are easy ones that everyone can understand, right?
So, unfortunately, these things do affect whether or not I'm going to do my part to try to stimulate the economy...mostly, because my job is on the line, I'm saving my pennies. The new entry door system and exterior paint job can wait until I feel more confident.
This article explains the "Fiscal Cliff" clearly.
http://www.sovereignman.com/expat/i-apologize-for-what-youre-about-to-read-9397/
Real Estate, Farm land and tangible things like precious metals, art, wine should be among the safest investments going forward for retaining value. I have a friend who bought 1,000 acres in Chile with a working Farm and is subdividing the non-farm area. The farm produces during the north american winter so picks up an extra 35% profit over the traditional season.
Fiat products like US & EU currency, stocks ect. are for lemmings. And I have profited nicely over the years trading 3x eft's.
I couldn't continue to pay $1200 a month on rent, so now I am paying $800.00 to own...... over $200.00 in property taxes. And PROJECTS to make the house liveable. . . . I am retired and on social security.
So my question to you is, did you know about this before you committed to this mortgage? I"m surprised the VA would let you purchase this home with this issue....
I'm a bit disappointed at Houzz for initiating a discussion that would predictably turn political.
I strongly encourage my single daughter to be very cautious and resist any form of debt. She works two stressful jobs. She and we have advisors, and it's a good thing as I couldn't contribute anything to the above conversations, except keep a good credit rating, stay out of debt and continue building that emergency fund.
Learned a lot here, which I think Houzz intended. My best wishes to all.
asbdk, I could say "yes" to most of your questions. Will research those I couldn't answer.
janiceadjohn, great house! We had a post and beam awhile ago, it was just way too big for us. We put radiant heat in this new one and it has been wonderful. Just keep it set at the same temp all the time. The garden window is a wonderful idea. When the Fall arrives, I miss my fresh basil.
Rather, looking forward, how you are personally budgeting for your own immediate projects and has your plan been impacted by the possibility of the changes in January?
Thomas Nast, a political cartoonist drew a donkey decked out in red white and blue to represent the Democratic Party. Today Democrats embrace the symbol of the donkey, a humble working beast, intelligent, courageous and tenacious in the pursuit of democracy.
The only thing we have to fear is fear itself. Which, not coincidentally, is the only thing the GOP has left to sell.
Democrats today say the donkey is smart and brave, while Republicans say the elephant is strong and dignified.
bobeeee,I looked this up as I never knew how this got started. I knew the symbols but didn't know about Nast. Ah, the power of the media…then and now.
shelly, read the CNN article and I wanted to comment on one of the points. Thanks for the link.
Medicare doc fix Expires. Medicare payment rates for physician services drops by 27%.
I live on Cape Cod and we are losing docs every day because there are so many 65+ on Medicare that live in this retirement area. The docs can't afford to keep a satellite office open here. That means a 4 hour round trip to Boston for maybe a 15 minute visit (if you can get an appointment!) Two of the specialties really affected are endocrinology and dermatology (cutaneous); 65+= lots of thyroid, diabetes, skin cancer and melanoma issues. If indeed that CNN article is right on…Wow! It won't make any difference if you can pay out of pocket as there will no longer be anyone left to pay.
Hopefully our lawmakers can work together to move our economy forward (which I am sure there will be some partial agreement, or they'll have a work around, which I hear may go into the Sandy bill, which works, but only prolongs the inevitable). In the meantime, I'll continue to save money for our next remodeling projects. We are also now looking into the possibility of refinancing again at low low rates, so there is always a silver lining!
In what geographical area are your services offered?
My own interior design practice outside of job is for people of all walks of life :) Most of them can't afford much above IKEA.
Mercy Me, do you have any projects going on that you'd like to share?!
Mercy Me, do you have any projects going on that you'd like to share?!
Judyg, thanks! We love it.
Marq: Where did you get your crystal ball, I could use one just like it. If the President has his way, he will allow all the Bush tax cuts to stay in place except for the rate on those above $250k, which will increase from 33% to 36%. So between me and my partner we will pay an additional $15,000 in federal taxes. Again, this 36% income tax is on top of the full 15% FICA tax, on top of the 6.35% State of CT income tax, on top of the townships personal property tax, on top of the 6% of paid wages for unemployment tax the company pays, on top of the excessive workers comp insurance we pay on top of the huge increase we are seeing because of the new health insurance regulations. Altogether that is well in excess of 50%. And as my original post indicated, we can only take as salary about half of that $250,000 profit that I pay all those taxes on. That is for working 60 to 70 hours a week. I would like to know, how high is "my fair share"? And does that number keep increasing as our government keeps spending at unsustainable levels? Bottom line, this is why our economy will suffer for years to come. Because nearly 50% pay no income tax and thus have "no skin in the game", so don't care on what or how much our country/state governments spend. Sorry to all for the long winded reply.
Shelly I think the following men said it best:
THOMAS PAINE WROTE:
Personal property is the effect of Society; and it is as impossible for an individual to acquire personal property without the aid of society, as it is for him to make land originally. Separate an individual from society, and give him an island or a continent to possess, and he cannot acquire personal property. He cannot be rich. So inseparably are the means connected with the end, in all cases, that where the former do not exist, the latter cannot be obtained. All accumulation therefore of personal property, beyond what a man's own hands produce, is derived to him by living in society; and he owes, on every principle of justice, of gratitude, and of civilization, a part of that accumulation back again to society from whence the whole came. This is putting the matter on a general principle, and perhaps it is best to do so; for if we examine the case minutely, it will be found, that the accumulation of personal property is, in many instances, the effect of paying too little for the labour that produced it; the consequence of which is, that the working hand perishes in old age, and the employer abounds in affluence.
BENJAMIN FRANKLIN WROTE:
All property, indeed, except the savage's temporary cabin, his bow, his matchcoat and other little Acquisitions absolutely necessary for his Subsistence, seems to me to be the creature of public Convention. Hence, the public has the rights of regulating Descents, and all other Conveyances of Property, and even of limiting the quantity and uses of it. All the property that is necessary to a man is his natural Right, which none may justly deprive him of, but all Property superfluous to such Purposes is the property of the Public who, by their Laws have created it and who may, by other Laws dispose of it. whenever the Welfare of the Publick shall demand such Disposition. He that does not like civil Society on these Terms, let him retire and live among Savages. He can have no right to the benefits of Society, who will not pay his Club towards the Support of it."
(Scottsman) ADAM SMITH WROTE:
In a society of an hundred thousand families, there will perhaps be one hundred who don't labour at all, and who yet, either by violence, or by the more orderly oppression of law, employ a greater part of the labour of society than any other ten thousand in it. The division of what remains, too, after this enormous defalcation, is by no means made in proportion to the labour of each individual. On the contrary those who labour most get least. The opulent merchant, who spends a great part of his time in luxury and entertainments, enjoys a much greater proportion of the profits of his traffic, than all the Clerks and Accountants who do the business. These last, again, enjoying a great deal of leisure, and suffering scarce any other hardship besides the confinement of attendance, enjoy a much greater share of the produce, than three times an equal number of artisans, who, under their direction, labour much more severely and assiduously. The artisan again, tho' he works generally under cover, protected from the injuries of the weather, at his ease and assisted by the convenience of innumerable machines, enjoys a much greater share than the poor labourer who has the soil and the seasons to struggle with, and, who while he affords the materials for supplying the luxury of all the other members of the common wealth, and bears, as it were, upon his shoulders the whole fabric of human society, seems himself to be buried out of sight in the lowest foundations of the building.
And, finally, WARREN BUFFET WROTE:
Wealth is just a bunch of claim checks on the activities of others in the future. You can use that wealth in any way that you want to. You can cash it in or give away. But the idea of passing wealth from generation to generation so that hundreds of your descendants can command the resources of other people simply because they came from the right womb flies in the face of a meritocratic society.
I’ve had it so good in this world, you know. The odds were fifty-to-one against me born in the United States in 1930. I won the lottery the day I emerged from the womb by being in the United States instead of in some other country where my chances would have been way different.
Imagine there are two identical twins in the womb, both equally bright and energetic. And the genie says to them, “One of you is going to be born in the United States, and one of you is going to be born in Bangladesh. And if you wind up in Bangladesh, you will pay no taxes. What percentage of your income would you bid to be the one this is born in the United States?” It says something about the fact that society has something to do with your fate and not just your innate qualities. The people who say, “I did it all myself,” and think of themselves as Horatio Alger - believe me, they’d bid more to be in the United States than in Bangladesh. That’s the Ovarian Lottery.
The majority are saying that if people are responsible, it doesn't matter. But again, R don't attend to data-- hold to a belief rather than evidence."
You clearly initiated the "political discussion" in this thread by writing this but then you say the right began this?
Have a nice day everyone and be THANKFUL for what you do have.
There is not a dislike button; we need one; but, in the meantime how about :>( ?
Good Luck to All :)
Wishing You Happy Holidays !
I will go ahead with the large remodel, but will really have to watch our pennies.