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Rising Rents Are Pushing More Tenants Past the Breaking Point

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Re: Rising Rents Are Pushing More Tenants Past the Breaking Point

#31

Post by WallWextra »

eli_gottlieb wrote: post #28
mindcrime wrote: post #20

Earlier quoted context omitted.

So what's your point? Do you want to eliminate rent? Should people who either can't afford to purchase a house, or who simply don't want to, be forced into homelessness? Personally I've paid over $115,000 in rent over the past 12 years, but I don't begrudge my landlord their money. I attained utility in exchange for the rent I paid, and have no problem with the arrangement. Not, of course, to say that I'm happy when…

>Do you want to eliminate rent? Yes. Land should be held by housing cooperatives or by private owner-occupiers. Rentiers can go find a line of business that contributes to society.

When you live in a coop, you usually pay rent.

Re: Rising Rents Are Pushing More Tenants Past the Breaking Point

#32

Post by [deleted] »

eli_gottlieb wrote: post #28
mindcrime wrote: post #20

Earlier quoted context omitted.

So what's your point? Do you want to eliminate rent? Should people who either can't afford to purchase a house, or who simply don't want to, be forced into homelessness? Personally I've paid over $115,000 in rent over the past 12 years, but I don't begrudge my landlord their money. I attained utility in exchange for the rent I paid, and have no problem with the arrangement. Not, of course, to say that I'm happy when…

>Do you want to eliminate rent? Yes. Land should be held by housing cooperatives or by private owner-occupiers. Rentiers can go find a line of business that contributes to society.

[deleted]

Re: Rising Rents Are Pushing More Tenants Past the Breaking Point

#35

Post by [deleted] »

pc86 wrote: post #25
_wc0m wrote: post #9

Rent is an amazingly effective means of redistributing wealth upwards. I have easily paid over £100k rent in my life, always to people substantially richer than I am. Always enjoyed this Churchill quote - from 1909! Roads are made, streets are made, services are improved, electric light turns night into day, water is brought from reservoirs a hundred miles off in the mountains -- and all the while the landlord sits s…

And what you received in exchange for that was a lifetime of not being homeless, having no maintenance or (immediate or direct) tax responsibilities, and the freedom to leave without having to sell an expensive, illiquid asset.

[deleted]

Re: Rising Rents Are Pushing More Tenants Past the Breaking Point

#36

Post by beebmam »

In large cities across the US (and probably most of the world), there is some very large scale foreign speculation in the housing market going on. This is leading to rising rents and rising home prices.

In Seattle, for example, many (newly) wealthy Chinese people are buying houses purely for investment purposes. I know some of them. One of them has purchased 10 houses, and lives in only one of them (when they are in the states). They've made millions on just this speculation.

In the short term, this means housing prices are absurd. In the long term, when these houses are no longer appreciating in value at such large scales, we can expect a crash in the housing market. Which will likely mean something similar to the housing crisis of 2008.

The Seattle city council has wanted to pass a law that would make it visible to the public which houses were being bought by foreign investors, but it was deemed illegal.

https://www.seattletimes.com/seattle-news/politics/proposed-...

To me, this is absurd. This is a human rights issue (homelessness is growing by a large amount). This is also a national security issue; this speculation cannot happen forever, and when it ends, I forsee an awful crash.

Re: Rising Rents Are Pushing More Tenants Past the Breaking Point

#37

Post by natrius »

mindcrime wrote: post #20
_wc0m wrote: post #9

Rent is an amazingly effective means of redistributing wealth upwards. I have easily paid over £100k rent in my life, always to people substantially richer than I am. Always enjoyed this Churchill quote - from 1909! Roads are made, streets are made, services are improved, electric light turns night into day, water is brought from reservoirs a hundred miles off in the mountains -- and all the while the landlord sits s…

So what's your point? Do you want to eliminate rent? Should people who either can't afford to purchase a house, or who simply don't want to, be forced into homelessness? Personally I've paid over $115,000 in rent over the past 12 years, but I don't begrudge my landlord their money. I attained utility in exchange for the rent I paid, and have no problem with the arrangement. Not, of course, to say that I'm happy when…

Don't eliminate all rent, just tax away the rents derived from the land itself.

https://en.wikipedia.org/wiki/Georgism

Re: Rising Rents Are Pushing More Tenants Past the Breaking Point

#38

Post by mcbruiser3 »

eli_gottlieb wrote: post #28
mindcrime wrote: post #20

Earlier quoted context omitted.

So what's your point? Do you want to eliminate rent? Should people who either can't afford to purchase a house, or who simply don't want to, be forced into homelessness? Personally I've paid over $115,000 in rent over the past 12 years, but I don't begrudge my landlord their money. I attained utility in exchange for the rent I paid, and have no problem with the arrangement. Not, of course, to say that I'm happy when…

>Do you want to eliminate rent? Yes. Land should be held by housing cooperatives or by private owner-occupiers. Rentiers can go find a line of business that contributes to society.

please feel free to start up a coop then. nothing is stopping you and your friends from doing that. have at it, and good luck.

edit: apparently some people don't like this comment because it means you have to help yourself instead of the gov't giving you other people's money. get a life.

Re: Rising Rents Are Pushing More Tenants Past the Breaking Point

#39

Post by notyourwork »

beebmam wrote: post #36

In large cities across the US (and probably most of the world), there is some very large scale foreign speculation in the housing market going on. This is leading to rising rents and rising home prices. In Seattle, for example, many (newly) wealthy Chinese people are buying houses purely for investment purposes. I know some of them. One of them has purchased 10 houses, and lives in only one of them (when they are in…

> To me, this is absurd. This is a human rights issue (homelessness is growing by a large amount). This is also a national security issue; this speculation cannot happen forever. Our economy will very likely crash when this speculation is no longer profitable.

This is my biggest concern with wanting to dip my families toes into their first home purchase. We lived in Seattle last few years and the market is stupid, we recently moved to Bay area and this market is even more silly. (I know we pick some great places for first time home buyer but careers and education take you where they take you, that's another discussion.)

Re: Rising Rents Are Pushing More Tenants Past the Breaking Point

#40

Post by billmalarky »

_wc0m wrote: post #9

Rent is an amazingly effective means of redistributing wealth upwards. I have easily paid over £100k rent in my life, always to people substantially richer than I am. Always enjoyed this Churchill quote - from 1909! Roads are made, streets are made, services are improved, electric light turns night into day, water is brought from reservoirs a hundred miles off in the mountains -- and all the while the landlord sits s…

> He renders no service to the community, he contributes nothing to the general welfare, he contributes nothing to the process from which his own enrichment is derived.

The value landlords provide is the assumption of risk. The premium you pay to rent is in exchange for vastly limiting your exposure to said risk.

This is why offloading the risk onto creditors (ie purchasing real estate with borrowed money under an LLC) is so lucrative. You reap all of the rewards of property ownership, but none of the downside. In a failure scenario your creditors are on the hook, not you.

I should probably add that banks are not stupid and it is very difficult, but not impossible, to get a loan for real estate investment under an LLC.

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