LOCATION, LOCATION, LOCATION = tax breaks, free loading, wealth                                                                      grabbing

Why property obsessed oldies grab top locations (till death or divorce us do part)

 


Location
Mira Bar Hillel did well to publicise postal codes of streets such as Belgrave Road, Grosvenor Square and Wimbledon Hill Road where around half the properties are worth more than £ 1m. (Evening Standard, 27th August 2004). She identified the expensive streets in Central London by one feature alone. She did not need to count Rolls or check Rolexes on wrists. She did not look at what fine schools lucky local children went to. She just summed it all up as property where the £ millions are.

High property prices highlight sought after locations which enjoy bundles of goodies. Not only this but Millionaire property owners in these streets have landed here, assisted by significant tax breaks connected to this capital wealth. The favourite being the tax free gain on owner-occupier main residences.

Do you reckon this is fair? Smug oldie parents in the million pound postal districts will be spoilt for choice with respect to schooling. Anyway they are unlikely to need to forego holidays to pay private school fees. Their location will also give them access to good clinics, hospitals and the tube or commuting station. They will be free from the worries of those whose earnings despite two incomes are eaten up by taxes and recent mortgages or high rents.

Few postcode millionaire oldies wish to sell properties except to trade up, even if they are claiming to be "income poor" (property obsession equals inability to do anything useful) they prefer to borrow a quarter of a property's value "to help them get by" and then claim deeper income poverty. Few choose to invest in someone else's enterprise which would create real wealth.

Newspapers regularly publish letters by asset rich, income poor unfortunates. Not all can be mentally challenged. Sadly, however, the billions that are attached to property does not generate 21st Century learning and experience and therefore lead to automatic vigorous success in the marketplace.

Property success attracts and leads to extreme self complacency.

The Duke of Westminster's advice: Stick to property: diversifying
into canals, railways and coal mining looked smart 200 years
ago but property has been a much better long-term bet.
(Financial Times, 7th December 2004).

Advice to these income poor, letter writers, should be the same as the Duke of Edinburgh's admonition 30 years ago:
"Gentlemen, it is time you pulled your finger out!"

Undeserved growth in property wealth leads to economic constipation whereby wealthy families and individuals make fewer and lazier decisions. This impacts us, especially in the marketplace for bedspace and jobs.
Property obsessed oldies clog up the banking system and eventually bring it to near bankruptcy. They are not wealth creators.
In contrast bright, energetic individuals find it immensely difficult to generate capital from after tax salaries or profits. They are forced by bankers to grovel if they want a loan because there are lines of oldies ahead in the queue who are pledging their "growing property assets" as security.

We who have ideas and energy are held back again and again during our early experiments and efforts with business start-ups.

Unlike these property-rich / income-poor (entrepreneurial averse), we representatives of the energetic class to whom property should not be even our tenth priority, need to be deeply engaged in producing for the market and our futures.

In farm produce, design, smart goods or services. We are computer wizards. However we need cheap space for sleeping and cheap space to work in. Every day we can internalise tens of millions of learning experiences whilst satisfying the market.
We wish to soar Branson-like as entrepreneurs, not made to struggle - and are held back. Living costs plus taxes squeeze us dry, so capital accumulation is slow. The easy property scene, exploited by oldies, sidetracks us and buries capital - freezes it outside the real economy.
We feel that our efforts which will have to feed and satisfy future society should be encouraged by a 100% reward. The best part of the reward should not end up with the big time property class oldies or their benefit dependent relations via taxes on us.

Growth in our economic system can never be founded on oldie property obsessions because ease of property growth dulls the brain.

Risk taking (with its occasional early small successes) always leads to worthwhile experience. The repeated learning process enables more risk, enterprise and more frequent success.

If one examines the history of property classes from the time of Rome (or even earlier), the property classes always seek more and more special privileges: exemption from duties and responsibilities such as the Roman numeral which was an obligation for land owners to provide government with certain goods and services [1]. Rome self destructed because it had too many toga clad city slickers living off free rides from distant provinces which like Scotland needs to do now, gave up on Rome.

I can think of nothing from steam power to radio phones that has been invented by aristo property owners or their offspring. Enterprise history (as described in Terence Kealey's The Economic Laws of Scientific Research, MacMillan 1996) shows us that throughout the 18th to 20th Centuries, scientific and engineering progress was the result of ordinary individuals either as engineers or scientists applying themselves to problems.
Visit a property auction. Barely literate or numerate property obsessives are strutting around hoping to repeat their previous scam... Buy low, tart up and sell high. They win, the bank wins the loan and especially the taxman wins. How? The eventual mug-buyer signs up to repay a 20 year loan which has to be repaid from after tax income. Welcome to a lifetime of tax slavery.
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SINK LOCATIONS -- result from tax breaks, free loading and wealth grabbing

If Mira Bar Hillel can list millionaires by post code then, if land values were available, she could if she wished list all the worst off areas of London or the UK by post code where negative wealth embraced streets or whole areas (often called sink estates).

Since the Police often fear to go into these areas except in convoys, what do we expect the result will be of top-down initiatives to cheer up the residents? Sitting ducks such as expensive drop-in centres, youth clubs, sports facilities, gardens and garden seats or security centres will become as sought after targets by the estate insurgents, as are US canteens or control points in Iraq or Afghanistan.

Many immigrants and refugees are now dumped in these areas. It would be wonderful to see their energy and imagination released, instead of which they are barricaded within sink council flats and prevented by law from undertaking paid employment - but vulnerable to gangmasters and the Black Economy (see IMMIGRATION). Many existing occupiers would enjoy the ride and the spectacle of improvement.

Instead, Whitehall continues to mistakenly parachute in shock troops with expensive presents in the residential areas and industrial wastelands to give away business rate and other conventional tax holidays to developers. These business zone incentives are always captured as higher land prices or rents by owner/developers.
Low land values signal urgent need for community inspired self regeneration as a grass roots movement managed by the locals themselves.
Social workers who only see the symptoms (residents may say they cannot afford new shoes, food for their children or other necessities) assume that a shower of government alms will solve many families' problems.

The real answer is to give the locals the incentive and elbow room to self regenerate. We need allies amongst the forgotten. These included Oldies who, possibly through no fault of their own, have ended up without hope in sink areas.

A new tax strategy - call it Our Way - could galvanise efforts from residents and incomers who recognise the opportunities that areas with low land values offer.

For example Whitehall, using land value data, could lift personal, capital, and other taxes on individuals who lived (or ran businesses) in areas valued, say, 50% below median city land value. Self regeneration would begin immediately as people traded in and out of council or private property and leaders emerged from within the local community who could tackle issues such as policing (vandalism, graffiti, personal safety, drugs, theft, etc.), environment (parking, abandoned cars, dumping, etc.), community relations (racial, age-related), and other issues. With their personal/corporate tax rebate, those IN the community would spend ON it - instead of seeing THEIR money disappear into Government or Landowner coffers.

CITY financial slickers grabbed special tax concessions for their "Value to Society".

Time for us Under 30's to use our vote in the May election to free ourselves
from Tax Slavery.

Also to make common cause with other millions left behind in Britain and point out the way for these 'abandonados' ignored by the property-rich OLDIES.
(See WORK not WELFARE)

 

 

 

 

 

 

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[1
] In ancient Egypt, the tax exemption for temple lands eventually drove almost all the good land into the hands of the priestly class, making them immensely rich (and leaving the world a stunning legacy of monumental temple architecture that still impresses several millennia later), but starving the government of revenue. In Rome, the land tax exemption for the noble senatorial families had a similar effect, leading to Pliny's famous observation that the latifundia (vast landed estates) had ruined Rome, and would likewise ruin the provinces.