Creating money

[Sava]

Originally posted by Lancer
He's not buying it outright, he's paying me a mortgage. The next guy buys the mortgage outright...He puts the value of the house in my ready fingers, and now he holds the mortgage.

I'm thinking about going out for Chinese food and a beer.

If the first guy doesn't buy it outright, then you are only getting one payment of $100,000... not two.

don't drink too much, brain cells don't grow back

[Lancer]

Well ok Imran, how about this case:

I buy a house for $50,000 and sell it for $100,000. I created $50,000, right? Simple, yes?

[Imran Siddiqui]

He's not buying it outright, he's paying me a mortgage. The next guy buys the mortgage outright...He puts the value of the house in my ready fingers, and now he holds the mortgage.

Still no money is created simply by that sale. The guy that bought the mortgage from you outright, will make a profit on the interest payments. YOU, on the other hand, will see no money from that interest.

You simply have no idea what you are talking about Lancer .

[Imran Siddiqui]

I buy a house for $50,000 and sell it for $100,000. I created $50,000, right? Simple, yes?

No, the value of the house just rose (ie, you didn't do anything). Unless you are saying you bought a house for $50,000 and sold it IMMEDIATLY for $100,000. Then yeah, you made $50,000 profit.

[Sava]

Originally posted by Lancer
Well ok Imran, how about this case:

I buy a house for $50,000 and sell it for $100,000. I created $50,000, right? Simple, yes?

no, you made a profit... and who would pay $100,000 grand for a house worth $50,000? Maybe if you had a good eye for real-estate... but judging from this thread... I wouldn't quit your day job

[Lancer]

"You simply have no idea what you are talking about Lancer"

Sure, but when has that every stopped me?

[Lancer]

Sava, I bought 2 houses in my life, and am now selling my second. The first I bought for $65,000 and sold for $172,000, 6 years later. The second hasn't been as good. I bought it for $70,000 and am about to sell it for $175,000, 14 years later.

...and I work nights.

[Lancer]

I've created $212,000 through this method alone.

[Sava]

Originally posted by Lancer
I've created $212,000 through this method alone.

you haven't accounted for inflation or maintenance costs, or any improvements/work that was done

[Lancer]

True, that would reduce it maybe $20,000.

Good to see that you agree it's created money.

[Imran Siddiqui]

Are you using 'created money' to mean profit? Because even if you are, your original example created no profit for you .

[Sava]

Originally posted by Lancer
Good to see that you agree it's created money.

You gained the money through transaction... you didn't create jacksh1t.... the government is the only entity that creates money... legally... they own the mints that print the cash. DUH!

[Lancer]

How so? Sure seems like I'm doing okally dokally...

[Imran Siddiqui]

How so? Sure seems like I'm doing okally dokally...

But you didn't create anything... and by selling a mortgage, you didn't make any money, unless you snookerd the guy that bought the mortgage from you outright.

[Lancer]

I made money where there was but vacuum prior. Some money went in, alot more came out. Waalaa...