LAURIE MACFARLANE on the Effects of Land Ownership on Society

One of the key issues of our times is this dividing line that is increasingly driving a wedge between two different types of people in society effectively. On the one hand there are those who have a stake in the landownership effectively and that’s home owners but it’s also people like developers as well. And there’s those who don’t. And when you have a situation where the value of land is increasing and we’re talking about there’s a whole host of reasons why this happens naturally but is massively emphasized through the financial system. On the one hand if you happen to have a stake in that you own some land that the increase and that increases your net wealth through the wealth effect it increases your consumption and through things equity release it can increase your actual spending power. The flipside of that course is that for those who don’t own land that means that they see their rents going up and actually since about 2002. Any increases in incomes for the bottom 60 percent of earners has been completely wiped out by increasing housing costs. So you have the increase in rents sort of eating away at that of course if you if you’re hoping to try and be able to buy a house that means you’re going have to save more in order to get a higher deposit. So is this wedge between those who own land and those who don’t which is really driving society apart.

4 thoughts on “LAURIE MACFARLANE on the Effects of Land Ownership on Society

  1. You can own land and drown in debt, as many homeowners do. What he said is way too simplistic. However, there is a major problem with the ownership and that's how many became to own the land – through State grants.

  2. Try price discovery.

    Also, I didn't hear much out local municipalities as a stake holder vis a vi property taxes.

  3. I inherited an acre from my parents. They bought it and put a manufactured house on it in 1978. When they bought the land was 3400 a lot. Now, it is worth a lot more. Big pecan trees in the rear and one in the front, yards. A two car carport welded steel and a single carport welded steel we use for barbecues. Big front porch to eat on and a medium porch in back. Both have tin roofs. House has a metal roof now. It is worth A LOT more now. Land is an investment. Property tax, since I'm 55, is 200 a year. We live outside of town so, I can pretty much do whatever I want on it. It is nice to live rural Texas. Soil will grow ANYTHING. If you can buy in a rural area outside of town, land is somewhat cheaper and so are taxes. Also you usually don't need permits to build "add ons". Texas is at least that way. I can raise a bull for beef if, I wanted.

Leave a Reply

Your email address will not be published. Required fields are marked *