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Denver rent is back to 2022 prices after 20k new units hit the market

denverite.com

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Re: Denver rent is back to 2022 prices after 20k new units hit the market

#211

Post by brailsafe »

lbourdages wrote: post #202
tamimio wrote: post #198

Rents are high because landlords are greedy and are paying already inflated house prices. Owning is expensive because banks are greedy, pumping out the created credit for mortgages, which is an imaginary number based on no actual value, because somehow banks are allowed to create money! Here's the plot twist: you spend 30 years or even more (in Canada that has reached 70 years!) to pay the mortgage only to find out t…

70 years? That's just plain false. This website from the government of Canada here says the max term is 25 years, or 30 if it is your first property: https://www.canada.ca/en/financial-consumer-agency/services/... Edit: ah, I missed one part. You can have longer terms if you have more than 20% cash down. TIL.

They didn't say 70 year mortgages, they said 70 years to pay off a mortgage, which is still a bit exaggerated (maybe), but would come from the contingent of people who got themselves into variable rate fixed payment mortgages for comically expensive properties, and that had a significant amount of interest remaining before the feds started cranking up interest rates.

If rates go up from 2% to 6+% while you're holding onto a $2m detached house, it's a bad situation to be in.

https://www.bankofcanada.ca/2022/11/staff-analytical-notes-2...

Re: Denver rent is back to 2022 prices after 20k new units hit the market

#212

Post by true_religion »

lbourdages wrote: post #202
tamimio wrote: post #198

Rents are high because landlords are greedy and are paying already inflated house prices. Owning is expensive because banks are greedy, pumping out the created credit for mortgages, which is an imaginary number based on no actual value, because somehow banks are allowed to create money! Here's the plot twist: you spend 30 years or even more (in Canada that has reached 70 years!) to pay the mortgage only to find out t…

70 years? That's just plain false. This website from the government of Canada here says the max term is 25 years, or 30 if it is your first property: https://www.canada.ca/en/financial-consumer-agency/services/... Edit: ah, I missed one part. You can have longer terms if you have more than 20% cash down. TIL.

People refinance to take lower rates or pull equity out of the property and that resets the clock.

Re: Denver rent is back to 2022 prices after 20k new units hit the market

#213

Post by tamimio »

lbourdages wrote: post #202
tamimio wrote: post #198

Rents are high because landlords are greedy and are paying already inflated house prices. Owning is expensive because banks are greedy, pumping out the created credit for mortgages, which is an imaginary number based on no actual value, because somehow banks are allowed to create money! Here's the plot twist: you spend 30 years or even more (in Canada that has reached 70 years!) to pay the mortgage only to find out t…

70 years? That's just plain false. This website from the government of Canada here says the max term is 25 years, or 30 if it is your first property: https://www.canada.ca/en/financial-consumer-agency/services/... Edit: ah, I missed one part. You can have longer terms if you have more than 20% cash down. TIL.

Nope, it’s true and even hit higher, this is one example of many: https://files.catbox.moe/rpp5fp.mp4

Yeah, it’s a scam, the whole thing is one giant scam, yet it’s legal and normalized and everyone is ok with it!

Re: Denver rent is back to 2022 prices after 20k new units hit the market

#214

Post by soared »

DaveZale wrote: post #119
at-fates-hands wrote: post #44

Earlier quoted context omitted.

How far south are you? I lived in Colorado Springs for a few years as a ski bum and all my friends in Denver used to mock me driving back and forth, but my rent was almost $500 cheaper living in Springs. You're 100% right though.

just a little west of Pueblo. We're about 1/3 of the cost of living in the Denver area. We get plenty of migrants from the Denver area and elsewhere. Of course, the sales tax and other taxes are going up. Probably heading to a truly rural area with a nice community soon. I lived in many big cities over the years. They are toxic and unsafe. I know that because I worked in public health. If you look at the morbidity an…

Healthcare and schools in that part of the state are so bad that it doesn’t make sense for young families and older people.

Re: Denver rent is back to 2022 prices after 20k new units hit the market

#215

Post by sokoloff »

Retric wrote: post #190
phkahler wrote: post #185

Earlier quoted context omitted.

Nope. Smaller more affordable homes would be a better solution. Most people who rent cant afford to buy, but rent is a worse deal long term.

For single family homes square footage alone has a fairly modest impact on housing prices. Land, driveway, number and quality of fixtures, electrical hookups, cabinets, countertops, doors, clearing land, water, sewage, etc can be nearly identical costs for a 1,000 sf or a 3,000sf home. Many things like wall insulation and heating demand increase sub linearly with square footage. Which is why home builders so heavily…

A 1000 sqft, 3BR, 1 Bath, basic kitchen unit will be cheaper than a 3000 sqft 4BR, 2.5 Bath, fancy kitchen unit. Builders (and most everyone else involved in real estate) make a lot more money on the latter than the former, though.

Re: Denver rent is back to 2022 prices after 20k new units hit the market

#216

Post by grumple »

1270018080 wrote: post #101
JKCalhoun wrote: post #93

Earlier quoted context omitted.

You may object to it, but a home has been the smartest investment I've ever made.

The "fuck you got mine" attitude so many homeowners have and deliberate supply restriction to increase property values makes it a smart investment on paper, at the cost of screwing everyone else coming after you.

The restrictions on supply are generally economical. Every day, building gets more expensive; labor and parts both cost more. That is going to cause the average home to cost more, even older ones, as you always have the option to get a new build at current rates or an older one for slightly cheaper.

Re: Denver rent is back to 2022 prices after 20k new units hit the market

#217

Post by lbourdages »

brailsafe wrote: post #211
lbourdages wrote: post #202

Earlier quoted context omitted.

70 years? That's just plain false. This website from the government of Canada here says the max term is 25 years, or 30 if it is your first property: https://www.canada.ca/en/financial-consumer-agency/services/... Edit: ah, I missed one part. You can have longer terms if you have more than 20% cash down. TIL.

They didn't say 70 year mortgages, they said 70 years to pay off a mortgage, which is still a bit exaggerated (maybe), but would come from the contingent of people who got themselves into variable rate fixed payment mortgages for comically expensive properties, and that had a significant amount of interest remaining before the feds started cranking up interest rates. If rates go up from 2% to 6+% while you're holding…

> If rates go up from 2% to 6+% while you're holding onto a $2m detached house, it's a bad situation to be in.

I find it mind boggling that banks will lend money to people that cannot sustain a 4% increase to their mortgage rate. Rates have been over 10% in the 80's!

Re: Denver rent is back to 2022 prices after 20k new units hit the market

#218

Post by sokoloff »

JKCalhoun wrote: post #156
apwell23 wrote: post #114

Earlier quoted context omitted.

then it wouldn't be "smartest investment"

I moved from an expensive real estate market to a less expensive one. That has nothing to do with appreciation — just equity. Further, when I downsize — even in the same real estate market — that too is equity working in my favor independent of appreciation.

How is getting your own money back, many years later, without appreciation "equity working in [your] favor"?

Without the appreciation (and leverage multiplying that), buying housing would be nowhere near as good an investment. (As it stands today, it's phenomenal, of course.)

Re: Denver rent is back to 2022 prices after 20k new units hit the market

#220

Post by matthest »

tristor wrote: post #136

I live in Denver, I don't believe this article is true. I just got a renewal offer where they wanted to raise my rent by 30%. I have generally negotiated this down with my landlord (Greystar), but I also am well aware and they're more blatant about the fact that they use RealPage ever since the courts gave them a pass for blatant price-fixing and collusion. Greystar and two other major REITs own nearly 60% of all ren…

Shop around and see what others are offering. I believe your anecdote, and I've also seen several other anecdotes about how rents have dropped - someone said as much as $1k.

I'm sure it's a big mix right now.

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