The twelfth house is the house of inner living and boundless imagination. It is the natural house of the sign of Pisces and the planet Neptune.
These people can be extremely imaginative, their inner world is very vivid (for example they can play a tune in their heads, just like they are wearing an audio player). Their ability to relive emotions is uncanny, and indeed this house is brimming with echoes of their past, which can sometimes feel like they are somehow imprisoned by them.
There is some self-delusive air to this house, to the tune of Pisces. Even with a more attentive sign, there can be a conscious shirking from some of the world's harsher realities. This house is particularly vulnerable to feelings of vague, existential angst. These natives have a great dependence on others and fear loneliness. At times, this can indeed be the loneliest place on earth.
This is quite the dreamy house, and the tendency here is to weave big dreams that transcend the "smallness" of earthly rut. Of course, there is a big difference between weaving a dream and actually being able to carry it through, and that is the issue of this house. A natal chart should reflect enough energies in order to do something real with these dreams.
The problem here arises when the chart is weak, and cannot bring to light those special aspirations. The result can easily come to forms of substance abuse or other escapist techniques to disengage from the dreary, unexciting real world.
This house's natives may be more inclined to live in "fairy-tales". The twelfth house people see their experiences in a kind of mythical light, wanting to bring something special in their life and often picturing themselves as some kind of heroic or tragic figure (often a more internal process). Unfortunately, the more unstable ones of this house do tend to embrace the tragedies of their lives in a more self-destructive fashion.
On the other side, strong twelfth house natives can make the wondrous things of this house come to reality with just enough persistence. Because of this tendency to dream big, this house has perhaps the most extensive potential in the entire house system, although it may sometimes come to an all-or-nothing mentality. Those that do carry out their desires often touch a large public.
There is a strong pull here into domains that transcend simple earthy daily life. These natives search for something special, something with spiritual value. A chart that lacks natural spiritual qualities makes it difficult to fulfill this need, and can open the door to the more problematic aspects of this house: escapism, drugs, depression etc.
This house tends to be the psychological baggage of the chart, harboring all the unresolved emotional issues of the native: fears, feelings of guilt, past sorrows, feelings of helplessness, desires we do not allow ourselves to express, etc. Those "living" in this house can easily feel overwhelmed and overrun.
It's a good house for politicians, as it makes for a much more controlled exterior and whatever goes out of the lips is going through all the twelfth house filters, so there's much less room for error. That is why the world's greatest politicians have strong twelfth house placements. Of course, there should be strong elements outside this house so that the person does not get completely sucked up by this.
Afflicted twelfth house natives tend to escape the baggage of this house with escapist techniques such as completely immersing in big dreams or using alcohol or drugs, depending on the strength of the chart. If the chart is badly afflicted and these techniques seem ineffective, there may be consideration of the ultimate escape from life.
This house reflects our inner world and its contents. It reflects ourselves with ourselves, in the moment of inner intimacy. It is our most personal space, and reflects our fantasies and everything that goes on deep inside ourselves.
These natives tend to spend a lot of time in this inner world they built for themselves. Their imagination is very vivid, and in an introvert and passive chart these persons may get sucked up into their inner dreamworld, live a more "virtual" life. In other charts, the individual may be guided by the visions of their mind. Imagination may become too hyperactive, especially in difficult charts, leading to unfounded suffering.
Music and the arts are often important to this house, as they offer a higher muse and experiences that go beyond the simplicity of the lowly life. Its natives are highly sensitive to these fine experiences, and can be quite gifted, as it allows them to express the emotions that tend to aggregate here.
Being a shadowy house, activities here tend to be carried out in a more secret way, so as not to expose oneself to external objections or to negative repercussion, especially as this house tends to make the native more sensitive to these things. A certain secrecy and reserve seem to be prevalent in the natives of this house.