301–310 of 344 posts
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Nice try. Landlords and homeowners and the finance industry don't control the market... they just form a political bloc that controls zoning and taxes and transportation infrastructure and central finance, and these knobs in turn control the market. For some reason, they always vote for policies that pump their holdings. Can't imagine why. These policies do create problems, though, and it's not only reasonable to att…
Again, landlords aren’t a big enough group or coordinated enough to do anything. There’s no landlord lobby. Homeowners are a different story. It’s them who stop us from building more. But yea, it’s just the market and there’s no conspiracy and landlords are the last people to blame. Your comment on my cognitive abilities is a petty insult and is not allowed on this platform.
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> But eventually the vacant apartments will get rented out because they're costing their owners money Owners make money leaving properties vacant all the time. In fact, in many markets capital gains have been much more significant than rental income for a long time now.
Not in a down market. Everybody's a genius in a bull market, where you make money just because your assets went up in value. In a bear market, where your assets go down in value, anyone without cash flow goes bankrupt.
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> You don't need to purchase a home - but historically - if you did - you've been much better off financially. it's not the purchase of the home that made you better off financially, but the ability to purchase a home. If you had that ability, investing in another asset at the same leverage level (such as shares) would net you even more financial income (obviously, its higher risk).
Depends where you're talking about in Canada from 2001 to present day the average return of housing has beat the stock market. There is also a question of what amounts you're investing. Paying down a mortgage is sort of like having ever declining rent, but if you're investing in the market instead you face ever increasing rent so the amount of the investment is different between the two scenarios. For instance, after…
no, if you paid off the mortgage, then the cost of your "rent" is just the cost of the capital sitting in the house (plus those maintenance costs you mentioned).
There's no such thing as free living. it is possible that rent is more expensive - but over time, this ought to normalize, as expensive rent will incentivize build-to-rent and arbitrage the difference to make a profit.
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This was all part of the plan to build a nation of mindless debt slaves. It was very effective.
the 30 year mortgage was one of the greatest financial innovations of our time. Allowing anyone to pay off 2022 costs in 2052 dollars. I understanding hating credit card debt, buy now pay later, and other horrible "financial engineering" but the 30 year mortgage is overall a great thing for everyday people.
https://www.longtermtrends.net/home-price-median-annual-inco... nb that there is little relation to interest rates, which have been steadily declining since 82: https://www.freddiemac.com/pmms with the recent spike, we are currently at ~2000 interest rates, when homes were at 4x incomes, rather than 7+x home prices have been absolutely bonkers, with two massive bubbles (we are in one right now) and the fact that this…
Go kneel and beg in front of the owners of capital and land. Your concerns will be ignored.
You think this is psychotic? I doubt that, I can guarantee that secretly you are thinking the same thing. You would rather see yourself and everyone else around you suffer, for a chance to become one of the corrupted yourself.
The "working class" does not derive anything from interest and capital gains. It pays more in that it could possibly get back. It is in its collective interest to abolish all rent seeking and let capital yields and profits shrink to 0% as perfect market theory predicts.
But no, everyone wants to start their own feudal little dynasty. Eternally passing our obligation to work for them to their descendants, despite the fact that we won't be alive when those descendants are alive, forcing us to pass the debt onto our own descendants.
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Or maybe there's an ideal size for a given area based on geography and maybe many areas are already at that size.
A single family home is never the ideal size for any amount of geography.
Some people would increase density until we're all living in Blade Runner hoping it would make rents drop.
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That's always the answer. For some reason it's makes some people on here angry, but the only long term viable solution to expensive housing is to end NIMBYism and draconian zoning laws. Anything else is a short-term half-measure, including affordable housing, rent controls, etc. If you want to actually solve the housing crisis, you just have to build more housing. It really is that simple.
Or maybe there's an ideal size for a given area based on geography and maybe many areas are already at that size.
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Again, landlords aren’t a big enough group or coordinated enough to do anything. There’s no landlord lobby. Homeowners are a different story. It’s them who stop us from building more. But yea, it’s just the market and there’s no conspiracy and landlords are the last people to blame. Your comment on my cognitive abilities is a petty insult and is not allowed on this platform.
Blackrock doesn’t have any lobbyists? Apartment consortiums don’t have lobbyists?
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But eventually the vacant apartments will get rented out because they're costing their owners money (in taxes, mortgages, maintenance) and not bringing any in, and you can't spend more than you make forever. Rents go down when landlords go bankrupt. That's what happened in 2009-2010. It took about 4 years after peak homebuilding, and 2.5 years after peak home prices, and about 12-18 months after the financial crisis…
> But eventually the vacant apartments will get rented out because they're costing their owners money Owners make money leaving properties vacant all the time. In fact, in many markets capital gains have been much more significant than rental income for a long time now.