Quote:
Originally Posted by oil pan 4
I am rent out a $30,000 house for $650 a month. Been renting it out for almost 3 years.
How is that a 0 sum game?
For me it isnt.
If I had a 130,000 house I could rent it out for maybe $800.
Slum load is where it's at.
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Redpoint said:
Quote:
I don't like investing in commodities for the same reason that I don't like investing in the stock market; it's a zero sum game. For me to profit, it had to come at the expense of someone else.
My preferred investment would probably be real estate.
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Buying stock one person buys, the other sells. Money moves from one pocket to another but nothing new is added to the economy.
I was pointing out the buying an existing house is the same thing. Money moves from one pocket to the other but nothing new is added to the economy.
Yes, renting your house puts money into your pocket. It is money out of your renter's pocket. It is zero sum for the economy as a whole.
To add to the economy you have to make something new - turn raw materials into something worth more than the parts to create additional value.