[quote=briansd1]Not to say that there wasn’t waste, but at least government spending on salaries and pensions went to millions of ordinary people so their lives could be more enjoyable.
I believe that the misallocation of resources in government is as much in salaries and pensions as in giveaway sweetheart deals to private contractors who pocket the profits.
The bankers’ excesses and bailouts went to a small number of people at the very top.[/quote]
One of the things you’ll learn when you start getting some experience in real estate investing (and when doing any business really) is that maintenance costs do not contribute much to your profit line.
If you have a property and choose to pay more in repair, maintenance, and other costs, it will not increase your profit margin. In fact, it will actually harm your property’s value because many lenders will look at your property and its costs and will conclude that you spend too much money on maintenance and other costs and will deem you a bad credit risk.
However, if you choose to make upgrades in your property (for example, adding another bedroom, or expanding the living room), these improvements will allow you to ask for more rent, and will possibly make you more profit.
Choosing to pay more in maintenance costs also lessens the amount of money available for capital improvements.
Try to think of government that way.
In case you can’t figure it out, pensions are a maintenance cost.
