• 0 Posts
  • 14 Comments
Joined 1 year ago
cake
Cake day: July 16th, 2023

help-circle


  • It was always short sighted tax policy. We’re just living with the blowback.

    But in 1954, apparently intending to stimulate capital investment in manufacturing in order to counter a mild recession, Congress replaced the straight-line approach with “accelerated depreciation,” which enabled owners to take huge deductions in the early years of a project’s life. This, Hanchett says, “transformed real-estate development into a lucrative ‘tax shelter.’ An investor making a profit from rental of a new building usually avoided all taxes on that income, since the ‘loss’ from depreciation canceled it out. And when the depreciation exceeded profits from the building itself—as it virtually always did in early years—the investor could use the excess ‘loss’ to cut other income taxes.” With realestate values going up during the 1950s and ’60s, savvy investors “could build a structure, claim ‘losses’ for several years while enjoying tax-free income, then sell the project for more than they had originally invested.”

    Since the “accelerated depreciation” rule did not apply to renovation of existing buildings, investors “now looked away from established downtowns, where vacant land was scarce and new construction difficult,” Hanchett says. "Instead, they rushed to put their money into projects at the suburban fringe—especially into shopping centers.

    http://archive.wilsonquarterly.com/in-essence/why-america-got-malled







  • I’m definitely a city person. I love walking to things (for which I need sidewalks) and hate cars. I like being able to walk to a bar, personally I find more sense of community with close neighbors instead of being a mile from anybody. I have a rural friend who once asked if I got freaked out that my neighbors could see what I do in my yard and…no. Doesn’t bother me. Honestly I feel safer when I leave for vacation that my neighbors would text me if something was wrong at my house. I’m not scared of violent crime because it’s vanishingly small odds in most residential areas that aren’t poverty stricken.

    Any outdoor activity I don’t do frequently enough that it’s worth having a huge plot of land for it and I don’t want to have to mow an acre or more. I wouldn’t be able to survive on satellite internet.


  • The thing I’ve heard is, think of how when you’re a mile away from each neighbor, it’s your tax dollars paying for the road, sewer, sidewalks, water, electric, gas lines, for a half mile in each direction. Initially and for maintenance and replacements. That’s why a lot of rural areas just don’t have sidewalks or fiber internet or sometimes they’re using well water.

    In a city duplex, you’re paying half the utilities for like 20 feet in front of your house.

    It just is more efficient to live closer together, the reason cost of living goes up is because everyone wants to live in the city and employers want that supply of workers so they try to get in or close to the city too and it’s a virtuous cycle of concentration. But housing supply being what it is, and all the jobs being nearby, means housing prices go up. Still worth it to most people hence why there’s still demand, but higher than living in a place with fewer jobs and amenities.