Originally Posted by
Casa del Energia
Apart from my grammar errors – I thought it was reasonably crystalline. Nevertheless – here’s a clarification:
Firstly definitions..
“Property” - A piece of real estate, Something tangible or intangible to which its owner has legal title.
‘Land’ - The part of the earth's surface that is not covered by water.
And then a climb up the logic tree...
Land can be defined by measuring it directly – e.g. surface area, altitude, soil composition.
Property (in this case) is land to which someone has ownership rights. The attributes of ‘Land’ are tangible and can be measured with instruments (e.g a tape measure). The attributes of ‘property’ includes LEGAL TITLE – which is an agreement between two parties.
An agreement is an abstract concept – a legal tile is therefore abstract, and since legal title is an attribute of ‘property’ – it then becomes abstract itself.
Now for the rave from the pulpit..
AND so.. this is the point to my argument countering that Property is ‘safe’ because you have title to it and therefore can’t be taken away (easily, but then talk to NA Indians and see how that doesn’t really work). There is a MISCONCEPTION out there that because ‘Property’ = ‘Land’ and is as ‘safe as houses’ and is somehow completely immune to anything others can do. This is just plain illogical and woolly thinking.
Let's go one step further ..
In the final wash up and when you boil it all down – there is no difference between cash (bank deposits, pound notes, Dong, ding ding, duro effectivo, lucre etc. and so on, etc. etc.) and property (!). Money is TRUELY and irrefutably abstract is it not ? (If it isn’t then try explaining how it is created – or even better get a banker to explain how it’s created (and I bet you they don’t know)). So at a fundamental level – there is no difference in ‘safety’ between ‘Property’ and Cash as an asset class. Both are agreements between people – both are abstract.
Still not convinced?..
Go to Google maps, get the sat image of your house up on the screen. Who owns it? What is the mortgage?, how much are the rates? Is that driveway cross leased? Can’t tell? Well, that is because satellites only photograph the tangible and cannot record an ABTRACT CONCEPT.
And that is where the whole argument turns – the next time that satellite passes over, if the owner been biffed out by way of a mortgagee sale (or people’s revolution – please pick your favourite way of being dispossessed) – the satellite image will not change because the LAND will be the same ( but the PROPERTY will be in different hands).