What has driven changes in my spending in the past few years? I’m sitting on several lots / parcels of land, both developed with utilities, which I’ve delayed building on because of the phenomenally, rapid rise in construction, labor and materials in just a few short years. I’m not sure if anyone here has development experience, but it’s high risk because the developer tends to front so much cost not knowing if there will be customers to use the land. Fortunately, for me, that’s not an issue for me now. I understand there are some areas where development costs are passed on to people like homeowners in the form of special property taxes but in my area, the developer carries those costs. The construction price rise is incredibly sad for me because I know people would like to buy a house that’s affordable, but it’s not possible for me to build one at 2020 prices. I would build residential at zero margin for my own grown children who are all employed in medical or STEM but in my area appraisal values haven’t kept up with existing neighborhoods yet, meaning homebuyers need a very large down payment to make up the difference between an appraisal and a cost of a new build. That should balance out in time if the cost of existing homes remains high though. Yes, my paper assets like mutual funds have also gone up in “value” measured solely against dollars though, as some commenters have noted already.
It’s not the wildfires, hurricanes or tornadoes. It’s the cost to rebuild after those events as well as other events. I’m confident there are people who are happy when a storm damages their roof because they get an insurance replacement at little cost to themselves - in the short run.The insurance company pays the cost though and then that adds up over the overall loss ratio in the long run,which it would not if costs to repair or replace were less like they used to be.
Don’t forget Milton Freeman‘s famous quote about inflation being a monetary phenomenon. And don’t forget there are some countries where there is zero private property. So even 100% taxation is not enough to outpace government money creation. inflation is an increase in the supply of money or the supply of credit (since credit spends like money). We had way too much of that in just a few short years during the response to Covid.
In economics that is known as the Potent Director Fallacy, if I remember correctly. If such experts existed, surely we wouldn’t have the high inflation of the past few years in the first place, or even the gradual inflation over a longer period of time. Remember that 2% inflation per year, cuts the value of your savings in half and about 35 years.
If you/we had overheard them talking about how reasonable the load is on their fund purchases and how confident they are that their active fund managers will beat the market, I wonder if the thoughts and the comments might differ?
Comments
What has driven changes in my spending in the past few years? I’m sitting on several lots / parcels of land, both developed with utilities, which I’ve delayed building on because of the phenomenally, rapid rise in construction, labor and materials in just a few short years. I’m not sure if anyone here has development experience, but it’s high risk because the developer tends to front so much cost not knowing if there will be customers to use the land. Fortunately, for me, that’s not an issue for me now. I understand there are some areas where development costs are passed on to people like homeowners in the form of special property taxes but in my area, the developer carries those costs. The construction price rise is incredibly sad for me because I know people would like to buy a house that’s affordable, but it’s not possible for me to build one at 2020 prices. I would build residential at zero margin for my own grown children who are all employed in medical or STEM but in my area appraisal values haven’t kept up with existing neighborhoods yet, meaning homebuyers need a very large down payment to make up the difference between an appraisal and a cost of a new build. That should balance out in time if the cost of existing homes remains high though. Yes, my paper assets like mutual funds have also gone up in “value” measured solely against dollars though, as some commenters have noted already.
Post: 27 Months
Link to comment from December 18, 2025
It’s not the wildfires, hurricanes or tornadoes. It’s the cost to rebuild after those events as well as other events. I’m confident there are people who are happy when a storm damages their roof because they get an insurance replacement at little cost to themselves - in the short run.The insurance company pays the cost though and then that adds up over the overall loss ratio in the long run,which it would not if costs to repair or replace were less like they used to be.
Post: 27 Months
Link to comment from December 18, 2025
Don’t forget Milton Freeman‘s famous quote about inflation being a monetary phenomenon. And don’t forget there are some countries where there is zero private property. So even 100% taxation is not enough to outpace government money creation. inflation is an increase in the supply of money or the supply of credit (since credit spends like money). We had way too much of that in just a few short years during the response to Covid.
Post: 27 Months
Link to comment from December 18, 2025
In economics that is known as the Potent Director Fallacy, if I remember correctly. If such experts existed, surely we wouldn’t have the high inflation of the past few years in the first place, or even the gradual inflation over a longer period of time. Remember that 2% inflation per year, cuts the value of your savings in half and about 35 years.
Post: 27 Months
Link to comment from December 18, 2025
The humor was easy for me to see, and it gave me a couple of chuckles. I appreciate that.
Post: Health Insurance Double Take
Link to comment from November 23, 2025
Not 100% sure but I think it’s some microwaves have something radioactive in them and it’s not advised to take that apart.
Post: Replacement of Kitchen Appliances
Link to comment from November 23, 2025
Thanks Dan. That was a wonderful and different sort of post. :-)
Post: The Kids Are Alright
Link to comment from November 23, 2025
If you/we had overheard them talking about how reasonable the load is on their fund purchases and how confident they are that their active fund managers will beat the market, I wonder if the thoughts and the comments might differ?
Post: I Don’t Like to Judge…But.
Link to comment from November 9, 2025
“…just keep your judgement to yourself.” That gave me quite a chuckle.
Post: I Don’t Like to Judge…But.
Link to comment from November 9, 2025
Understood. Thanks for replying.
Post: “Most Revealing Question in Personal Finance”
Link to comment from June 5, 2025