[EconProf]

The Huffington Post piece is true, but grossly misleading.
There are essentially two ways to measure and compare economic well-being: income and wealth. Wealth is a “stock” measuring one’s assets minus liabilities. Anyone can (and occassionally should) add up all their financial and real assets, at market value, and subtract their liabilities in order to get their net worth.
Income is a flow, measured over a period of time, such as a month or year.
Wealth is far more unequally distributed than income, which may be why the left-leaning Huff Post likes to concentrate on it. Furthermore, the trend is to more and more unequal distribution over recent decades as people are conned into taking on more and more credit card debt to buy goodies. Many decades ago, before credit cards, everyone had savings accounts and rainy-day money, even the poor. Now we just assume we can hit our CC if an emergency presents itself. This all helps account for the growing disparity in “wealth”.
Income still looks to be very unequal in America, and appears to be
getting more so over time. But even income figures can be misleading. The measures of “income” say nothing about consumption, which is far more equally distributed. One reason is that government figures ignor “in kind” income, such as food stamps, housing subsidies, free child care, etc., all of which have exploded in scope and size in recent years. So a “poor” family may have only a $20,000 official income, but may be consuming at a $40,000 level, year after year.
Official income figures also ignor underground work, cash income, etc. Also, income government income figures always talk about before-tax income, not after-tax., a big factor with our state and federal progressive tax structure.
Economic well-being is tricky to measure, and should always include all the assumptions and definitions.

[EconProf]

In landlord/tenant disputes like this, it is usually the landlord side that is more aware of the legal rights and responsibilities of each side of the contract, and can win the argument if it comes to a contest. In addition, the rental contract is usually tilted toward the landlord in ways the tenant may not even know about.
However, it is better to meet with the tenant, show them the lease, remind them of their obligations, possible future legal and credit problems they could be facing, and then come to a compromise agreement. This way they are far more likely to remove all their stuff, clean up the place, and hand over the keys (formal surrender of the premises). Helps to remind them that if they do all the right things, they may get some of their deposit back or forego damage to their credit. It all goes back to the written agreement that governs your relationship, an alien concept to many tenants.
To really insure you two are on the same page, put your new understanding down on paper, which is legally an ammendment to your contract. I always keep a tablet with carbon paper for such an occassion. If you are under 30, ask anyone over 50 what carbon paper is.

[EconProf]

The main question is whether you can get a permit for it. Lots of hurdles involved, but if you can, your cost will be reflected in the new value of the property. If not, then you are taking big risks and could be adding zero value, in some cases even negative value.
The plumbing will likely be your biggest expense, but also your biggest contributor to an increase in value and usefulness.
If it is the typical 10′ x 20′ single garage size, you can just squeeze a br and small ba in.

[EconProf]

Between $3000 and $15,000, depending on the specs you need to give us. Details, please.

[EconProf]

Some on this site seem angry at Romney based on his wealth, the way he invests it here and abroad, and on how he made it as a venture capitalist at Bain. The Obama campaign is especially determined to make this an issue and is formenting class envy and anger. I suggest we should instead ask who is most able to pull the economy out of the ditch and raise the nation’s output and employment.
Historically, if we exclude a candidate because they are rich, we’d be omitting a lot of past successful presidents, including darlings of the left, like FDR and JFK. In fact, both these presidents INHERITED their wealth and did not largely make it on their own. I believe Romney did not inherit great wealth growing up, but what is important is that he multiplied it many times over by risking his own money, working hard at salvaging down-and-out companies, and reportedly increasing employment at 78% of them while losing employment (and his own money) at the rest. Venture capital typically goes after mismanaged or otherwise troubled companies that can’t qualify for a bank loan. They need radical shaking up to survive, and only fresh eyes and major changes from an outsider who puts their own money at risk can save them. Sometimes it works, sometimes it doesn’t. That’s capitalism folks.
BTW, another great president, George Washington, was one of the richest men in the colonies. He largely married into his wealth, but then built up a huge and varied enterprise, invented several farming innovations, speculated successfully on land investments, and got even richer. Kind of like a venture capitalist.

[EconProf]

I do not allow tenants with pets. Solves a lot of problems. Every time I allowed a dog in the past I lived to regret it. That may cost something in lower rent, but it has proved worth it overall.

[EconProf]

Actually, I think those are pretty good answers by Romney.
He is obviously rich and has worked hard and long to get there. He now has spread investments into many areas, has managers looking after those investments, and said investments include foreign ones. Given likely world growth trends by area, it is not surprising he has assets in, say, BRIC countries, maybe depressed european countries, etc. He’d be dumb to not diversify his investments and hire smart people to manage them, and I’d rather not have a dumb guy as president. I am also OK that he now hires others to manage his financial affairs and doesn’t know the details of everything–spend time instead on getting ready to be president, should that happen.

[EconProf]

CA renter is right–in CA one cannot simply cut the roots and the branches at the property line. If it kills the tree, you may be liable.
This is a perfect case of where the two property owners ought to get together and work it out. The tree’s owner needs to be appraised of the damage being done and the liklihood of it increasing in the future. Verbally at first, then in writing if no action taken, with the letter ending “…I hope we can solve this amicably and I do not have to impose on you the additional expense of my attorney.”

[EconProf]

This is SD Realtor’s territory, so we can wait till he weighs in. But the condo is well back from the street, and the street isn’t that bad anyway. Close to good shopping, a large open space…looks like an outlier price to me.

[EconProf]

One learns to cope with the weather. I currently spend half my days working on my Yuma area apartments, staying in one of them. Temperatures in the early morning can be low 70s on a day when it will hit 110. That’s the coastal effect, which doesn’t extend to Phoenix. Work hard in a.m., eat lunch, take nap, then stay inside. Rinse, repeat.
Yes, everything is cheaper in AZ such as gasoline @ $.30 less. So time your fuel level to hit Yuma when close to empty, and fill up in Yuma when leaving AZ for CA.

[EconProf]

TeacherSD…yes, the on-line Voice of San Diego is pretty good, especially their in-depth coverage of certain themes, such as the ongoing battle between the teachers’ union and the school board.
As for the North County Times, it is surprisingly complete for such a small newspaper. Covers much more than North County subjects. Don’t know it’s left vs. right bias, if any, which is actually a good thing.

[EconProf]

Prop 13 dictates that property taxes can rise no more than 2% per year from 1978 if ownership remains unchanged (exempting offspring who inherit, who get to maintain this break). The 2% maximum annual increase applies to all properties bought after 1978.
If a property falls in market value below its assessed value, you can appeal it and get it lowered. But once its value climbs again the assessment can “catch up”, that is, go up in excess of 2% per year until it bounces up against the ceiling of “2% per year increase from date of purchase” rule.
So in the two examples you cited, yes, the two owners will end up paying different property taxes on properties with the same market value.

[EconProf]

A few factors explain that much-misunderstood statistic. On the revenue side, many big corporations have headquarters in CA and NY (although that is changing), plus our progressive income tax structure takes more from high earners in the bigger states with higher costs of living.
On the expenditure side, the rural states have more military bases, interstate highways, and farm subsidies (which go mainly to the wealthy in those states.

[EconProf]

Life is full of risks, and we need to know when to take prudent risks and weigh the probability of problems. Above all, we should not react emotionally to scare headlines and dramatic, but rare hazards.
Hiring an unlicensed painter for your living room poses few risks compared to an unlicensed roofer or electrician. Furthermore, you can minimize those risks by getting referrals from a RE agent or landlord friend who uses such handymen.
The main result of a tradesman getting a contractors license is to up their price because of the implied greater security and professionalism. They may or may not give a better quality.

[EconProf]

Perhaps the original poster should not house-hunt based on a favorable or unfavorable reputation for construction.
After all, it is probably only one of perhaps a dozen categories to be weighed in settling on a house to buy. After all, there is neighborhood, transportation, architecture,viewshed, house size, lot characteristics, etc., etc. Frankly, I’d rather meet and quietly evaluate the immediate neighbors. Check out their dogs, kids, vehicles, opinions of the neighborhood, etc. They will be a bigger determinant of your happiness than construction quality.
Besides, below or above-average construction should be factored into the price already by the marketplace. A house with crappy construction should be priced accordingly. An inspection should reveal them and become a bargaining chip. Maybe the buyer should be willing to live with possible future plumbing problems if the price is knocked down by $10 or so. Everything is a trade-off.

[Author]

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