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31% Can’t Pay the Rent: ‘It’s Only Going to Get Worse’

nytimes.com

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Re: 31% Can’t Pay the Rent: ‘It’s Only Going to Get Worse’

#111

Post by newshorts »

gruez wrote: post #52
peacefulhat wrote: post #48

Earlier quoted context omitted.

Then should rents go up? It is now much riskier to be a landlord, risk that is going uncompensated...

Theoretically yes, although the demand curve also comes into play. In a parallel universe where the risks of a pandemic/lockdown was known and taken seriously, you would definitely expect rents to be higher.

Not really, you have to take into account a renter’s ability to pay. There’s an upper limit to what people can afford to spend on housing. Risk dictates a low percentage of the overall factor in pricing.

Re: 31% Can’t Pay the Rent: ‘It’s Only Going to Get Worse’

#112

Post by monadic2 »

iakh wrote: post #35
monadic2 wrote: post #11

Now is the time for landlords to prove their value.

Build a moat around your business* *as long as it's not real estate?

If you've been following who owns real estate, it seems to be the moat for businesses these days.

Re: 31% Can’t Pay the Rent: ‘It’s Only Going to Get Worse’

#113

Post by dang »

void9ce3b53dddd wrote: post #75
ngngngng wrote: post #50

Earlier quoted context omitted.

But living in a place without paying is taking something that doesn't belong to you. That space could be otherwise used if you hadn't temporarily stolen it.

Congratulations for intentionally missing the point because you are a bad person

We've banned this account for breaking the site guidelines. Could you please not create accounts to do that with?

Re: 31% Can’t Pay the Rent: ‘It’s Only Going to Get Worse’

#114

Post by monadic2 »

toolz wrote: post #72
nerdponx wrote: post #27

Earlier quoted context omitted.

freely choosing I'm as skeptical of neo-Georgism as anyone, but this is a pretty standard fallacy. I seriously doubt that most people who rent their homes and business properties have viable alternatives to renting.

Define viable. You mean a dwelling place that protects you from the elements well enough that they won't even be in the top 50 ways you'll be likely to die statistically? Homeless shelters take care of that and there are other options in between. As for businesses - I know plenty of multi-million dollar businesses that have no need for a brick and mortar, but the business angle isn't even an argument - there's never…

> You mean a dwelling place that protects you from the elements well enough that they won't even be in the top 50 ways you'll be likely to die statistically? Homeless shelters take care of that and there are other options in between.

Yikes.

Re: 31% Can’t Pay the Rent: ‘It’s Only Going to Get Worse’

#115

Post by pmorici »

missedthecue wrote: post #69
Spooky23 wrote: post #51

Earlier quoted context omitted.

Lol. Not at any scale. Once you own about a dozen units the principal risk is not getting over your head in debt.

So someone that purchased their units sans debt has no reason to charge rent?

Even without debt to service there is are still property taxes to pay and the opportunity cost compared to investing that capital in something else like 30- year treasury bonds that pay ~1%

Re: 31% Can’t Pay the Rent: ‘It’s Only Going to Get Worse’

#116

Post by monadic2 »

void9ce3b53dddd wrote: post #49
monadic2 wrote: post #11

Now is the time for landlords to prove their value.

Many landlords still have to pay for their ownership of buildings and properties and maintenance, etc. They need to see relief first if tenants are to also see relief.

> They need to see relief first if tenants are to also see relief.

You mean concurrently, surely? I don't see an issue with a mortgage relief, but the rent after paying for their portion of mortgage, tax, must go somewhere. Where does it go if not saving for value upkeep?

Re: 31% Can’t Pay the Rent: ‘It’s Only Going to Get Worse’

#117

Post by nerdponx »

toolz wrote: post #72
nerdponx wrote: post #27

Earlier quoted context omitted.

freely choosing I'm as skeptical of neo-Georgism as anyone, but this is a pretty standard fallacy. I seriously doubt that most people who rent their homes and business properties have viable alternatives to renting.

Define viable. You mean a dwelling place that protects you from the elements well enough that they won't even be in the top 50 ways you'll be likely to die statistically? Homeless shelters take care of that and there are other options in between. As for businesses - I know plenty of multi-million dollar businesses that have no need for a brick and mortar, but the business angle isn't even an argument - there's never…

With all due respect, you have no idea what you're talking about.

Re: 31% Can’t Pay the Rent: ‘It’s Only Going to Get Worse’

#118

Post by pxue »

barrkel wrote: post #54
missedthecue wrote: post #38

Earlier quoted context omitted.

>Almost by definition "rent" is simply extracting value from the productive economy through ownership. What? Do you define any profit margin as such? Housing rent is not the same thing as the term 'economic rent'. Housing is as much a liability as an asset. There is risk with owning it. Rent payments are compensation for said risk. All profit is just compensation for risk.

Profit is not compensation for risk. Risk is a limiting factor in chasing after profits, sure, but you can take unprofitable risks, and if you have a particularly privileged position or information, you can make a profit with little to no risk. Hugh Grosvenor, 7th Duke of Westminster doesn't exactly take a lot of risk for his rents.

I’m not sure your last part is completely true. All parts of land development and land owning must be securely insured. there are hoops to jump through.

Re: 31% Can’t Pay the Rent: ‘It’s Only Going to Get Worse’

#119

Post by Gibbon1 »

HarryHirsch wrote: post #83
Gibbon1 wrote: post #62

Earlier quoted context omitted.

The best thing to do is just put a moratorium on rents and debt for a couple of months. Semi related I read a detailed description what happened during the hyper inflation in Germany after WWI. A key thing is the inflation was not uniform. Food prices increased the most. And rents the least. At the end rents were effectively zero.

At the end rents were effectively zero Well, yes. You always need food, but you don't need your own apartment when you can start couchsurfing. Real estate does degenerate fairly quickly when it's uninhabited. You could see a similar phenomenon after German reunification. There was much real estate with unclear title in the East, and students and squatters were actually tolerated - the owners and the city knew that wi…

A lot of people don't really get the reality here. It's like the old saying if you owe the bank $100,000 and can't pay you have a problem. If you owe the bank $100,000,000 and can't pay the bank has a problem.

For a landlord a tenant unable to pay the rent isn't a problem. If 30-50% can't it's is his problem.

I understand you want to punish working class people for losing their jobs and being unable to pay rent. Fundamentally there will be chaos if it comes to that. First they don't have the money. Second they won't leave. Third the cops and the courts will do NOTHING about it.

Re: 31% Can’t Pay the Rent: ‘It’s Only Going to Get Worse’

#120

Post by dang »

effhn wrote: post #88
dang wrote: post #82

Earlier quoted context omitted.

Would you please stop using HN for political battle? You've been doing it a lot, and it's not what this site is for. Also, while I have you, would you please stop creating accounts for every few comments you post? We ban accounts that do that as well. This is in the site guidelines: https://news.ycombinator.com/newsguidelines.html . You needn't use your real name, of course, but for HN to be a community, users need s…

Stop suppressing uncomfortable opinions.

I have no problem with that opinion.

It's possible to express one's opinions thoughtfully and substantively, and as part of a wider pattern of using the site (i.e. not being on HN primarily for political battle). In other words, it's possible to follow the site guidelines. Plenty of users do that, on all sides of these issues. They don't run into problems with moderation.

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