I get the concern that small landlords will sell to big corpos who can handle the thinner margin, but for those smaller landlords that have paid off their property, or bought 10+ years ago, the margins are already super high, so the 3% cap isn’t going to cause them to sell when they have a $1200 mortgage and are collecting $2800 in rent, or no mortgage at all in many cases so pure profit more or less
sounds like a win-win
Cheaper homes in L.A.? We can’t have that!
Landlords will complain every time any government, local, regional or national, attempts to regulate their bullshit, and plenty of people will rush in to take their side because they see themselves as temporarily embarrassed ghouls. Tax them to hell and back.
they see themselves as temporarily embarrassed ghouls
Even beyond that, there’s little understanding of landlordism as a patronage system. “Oh, that person just saved up a bunch of money to buy a second property and then spends a lot of time and energy maintaining it, so they deserve a profit!” is just people regurgitating real estate propaganda.
You’re not describing the lion’s share of properties owned by hedge funds, wherein cheap access to low interest debt gives a handful of mega-banks and billionaires the ability to gobble up 40%+ of outstanding real estate. You’re not describing the process of slumming a neighborhood through deliberate public-sector disinvestment, before forcing people out through petty fines and over-policing until you can snatch up the real estate on the cheap at public auction or estate sale. You’re not discussing how red-lining and eminent domain can be used to shrink housing supplies by limiting who has access to which schools or public utilities. Or how tax incentives can be used to drain off public funds for profit-chasing private sector enterprises.
Even before you get into the delusional would-be landlord, you’ve got this enormous network of socio-economic back slapping and dick jerking that is fundamental to the creation of a landlord class that we simply don’t talk about.
Landlords say that would push them to see
Good. Do it. DO IT.
I need the class of landlords removed from society.
Where do you get housing from if you just want to rent?
You wouldn’t, u less it’s something like barracks housing. You would end up getting equity in your investment that you could sell otherwise, rather than throw away money.
Then who would be the owner?
It sounds like they’re saying the tenants would be, like a housing co op.
How would they get ownership of the real estate they live in?
That depends on if it’s an ownership cooperative or a non-equity cooperative.
Thats fine and is already available. Most people just dont want to live like this if they have the option.
So it’s a win-win then?
I think there is quite an easy solution to the housing issue we’re facing: exponential tax increase per property.
There is no reason for someone to own more than one property in a city. No reason at all. But even if you could find one - let’s say the first 2-3 properties (defined as houses/apartments of less than X area each) have regular taxes. But then? Then it gets retarded. 500k more per year for the fourth one. 4 mil extra a year for the fifth. 50 mil extra for the sixth. One billion for the seventh. You’re a property developer? You have until 2 years after the property was finisbed to make sure someone has bought every little bit of it, otherwise that 40 apartment building will end up costing you twice the foreign debt.
Can’t pay the taxes? You can always sell the place, at a fair market value. Let’s say your two uncles died in a short timespan and they both left you their houses, but you had some property already and now you’re up to 5 residential properties but you’re not prepared to pay the extra few million. You can always list their houses. Every month they are listed and don’t get bought, you reduce the price by 5%. Overvaluing the property gets it confiscated - you surrender your property to the state, which then distributes it to those in need in a lottery. You can also opt to just give away some of your less desirable properties directly instead of trying to sell them.
But no, that’d be sudden death for all the retards who keep building, all the fuck heads who keep buying and holding, and all the politicians whose pockets get padded for listening to whichever lobby.
SELL UP MOTHERFUCKERS
They will. And you’ll end up homeless.
“But if I sold it, I’d lose money!!!”
You know that they will just sell to large corporations that will fuck you over even harder. This is not to be celebrated
Bill Oswald, whose family owns eight apartments around Long Beach, said a corporate landlord recently contacted him about buying properties in the area. He said both his brothers urged him to sell, because of rising costs.
The large corps will buy everything. With this 3-5% rule (certain circumstances, in article) you can guarantee that is what they’ll raise it EVERY SINGLE YEAR moving forward. They’ll point at this committee saying “they set the rules, we just abide by them”.
So, when we get there, let’s also fix THAT problem. Im not a lawyer but I will bet my left hand it’s possible to write a law that can block large companies from investing in houses.
If you see people trying to fix a problem and your first instinct is to look for a reason to preserve the status quo, … Well don’t be like that.
There should be a logarithmic scaling on taxes for a home depending on how many you own. A normal person should be able to own a home. A rich person might be able to afford 3, a billionaire should be able to afford 10.
Yeah, big corporate landlords are a problem. Stopping all landlords from jacking up prices is a good thing. This can build momentum for more effective legislation for corporate landlords.
Reminds me of: https://youtu.be/fS9PvVCyazY
“Landlords say that would push them to sell.”
So, you’re saying it would increase available housing supply? Sounds great.
Oh, and for the record, they will not, in fact, sell. Most housing in Ontario is still under a 2% annual rent increase limit. Landlords are doing just fine (and by “Just fine” I of course mean “We have a national housing crisis because landlords are hoarding all the available supply”)
The poor little landlords! They have to find something else to do with their lives besides sitting on their rear ends most of the month and laughing all the way to the bank once a month.
The problem is raising rents are always due to lack of supply. I used to be very supportive of rent control but realized it’s just a shitty band-aid on the real problem - lack of housing.
It will keep rents low for a bit, but won’t fix the fundamental problem that allows high rents in the first place: and people will still struggle to find housing.
And you can bet your ass that any new will have massively increased rent or prices to compensate.
The real fix, like everywhere else, is to kick out the nimbys and allow building again
It will force them to sell, which will perhaps make buying a home more affordable, so less people have to pay rent and more people pay a mortgage on a home they bought.
While I sympathize with high rent prices, it’s still no different than say someone who owns a Wedding venue and rents out the location, tables, chairs, etc. They paid for the initial investment and are making money off of it through rental. That’s how investments work. Otherwise, what benefit is there to owning it outside of selling it outright.
People require housing. They dont require wedding venues
Yes, but it isn’t fair to expect anyone to provide housing at their own personal loss. I agree that people need homes, and we’re on the same page there. However, consider it this way. If you could earn more by charging a higher amount, would you charge less out of generosity, or would you try to maximize your income? This applies to anything. If you’re selling a car, would you sell it for less just to be nice, or would you sell it to the highest bidder? People need cars too. You see my point?
Then don’t provide housing at all, let the market be affordable enough that people can buy housing. All rental companies provide is a funnel to keep the impoverished from saving their money to buy a home they can’t fathom according anyways. Same thing with house flippers. Buying a shit hole and giving it a paint job should not make it worth 3x the value you bought it at. Affordable housing is not the job of citizens, it is the job of the government and the government is doing its job making said housing, more attainable through rent caps.
If the government gets involved, the owners will just sell, making homeownership even more unaffordable and reducing rent options. What you want is less greed in the world, and that isn’t going to happen in its current state.
I’m not the one downvoting you, but I think this is where you might lose me - I agree that people will buy housing and rent it out if they can make a profit, and we’ve had landlords doing that basically forever. But if the government gets involved and owners sell, I don’t see how home ownership can be more unaffordable. Basically we have a hugely constrained supply of housing. If, say, there were 50 skyscrapers full of apartments that went up overnight in San Francisco that charged $1000/month, rents would have to go down everywhere else because there would be the introduction of so much supply that nobody would pay more than that cost (because that’s the alternative to where they’re living now). Obviously that’s a fantasy scenario, but the various governments (city, state, and fed) all are not doing anything to move towards that goal, which would create supply equal to demand. If current landlords sell, then that would drive prices further down, not up - you’re literally increasing the supply again, and also because they will be competing against each other to sell, it should drive down prices for those homes as well.
people don’t need cars the same way they need shelter and food. I’m sick of landlords acting like they’re providing some kind of social service when they financially benefit from the arrangement at the expense of the tenant, whom unlike the landlord has nothing to show for years of renting, where the landlord has now paid off their mortgage and has more capital to purchase further properties… Its an inherently self concentrating system - a renter will struggle more to buy a single property than a landlord does to add “another investment to their portfolio” through more favourable loan securitization and asset evaluation.
Landlords provide housing the same way scalpers provide tickets - considering they amass a huge majority of a working individual’s income despite contributing nothing themselves and sitting sedentary for their serfs to pay their wages, I dont really give a shit what income maximisation they pursue. Anything more than a dollar is a profit, and one which they are just as likely to have “earned” from inheritance as they are from any actual hard work and skilful property quisition.
If it’s so tragic and unprofitable to be a landlord, might I suggest selling up and getting the fuck out of the equation, instead of playing monopoly with the housing supply and acting like you’re a saint for refusing to fix the fucking mould problem, so I can pay for your ugly family’s next holiday instead of having a stable roof over my head.
I have no vested interest, as I’m not a landlord. My point is that people generally won’t settle for less when they can earn more. Regardless of how essential the item or service is, businesses and individuals will always aim to maximize their earnings if the market allows it. It would be a poor financial decision not to. Whether someone feels resentful because others profit off of them (which, by the way, is all of us in America when we buy foreign goods who use children for harvesting raw materials or other labor), it’s irrelevant to the situation. It isn’t going to change until God changes it.
You are mistaken. I mean, I got married, and I rented a space for it. I payed it once. It’s 20 years behind me. It was a one time deal. The two have nothing to do with each other. You’re obviously kinda dumb. Or lazy. Or both. I mean, come one, that’s your comment? It’s so stupid.
Well, the British government has introduced a lot of changes recently, that made the landlord lives harder and landlords did start to sell. Now we have a situation, where people fight over places to rent, most places don’t even get advertised, people take them without viewings and rent prices have skyrocketed. All while housing stock in general got noticeably reduced. And, of course, homelessness is through the roof.
landlords did start to sell
while housing stock in general got noticeably reduced
I’m not sure how those two things can coexist. So landlords started selling but then nobody that owned just one property sold so despite the influx of properties being listed for sale, the stock reduced? So there’s fewer rental units which has people trying to get into them but there aren’t more people purchasing the properties?
These types of policies also affect the types of units that get built. If rental units are a risky business move, then more construction will go towards larger single family homes, which are 1) less space efficient (fewer units), but 2) much more expensive (so the builder gets their money’s worth)
The other thing is with rent control, housing stock will decrease because people will not move. If you are in a rent controlled unit, you’re very strongly incentivised to never leave : because while your rent has been grandfathered to a low price, when you move you’ll suddenly starting paying the inflated rates everyone else has been paying to offset the sub-market rents you had. Live in the same place long enough and this could be a 1000% increase.
“Push them to sell” … “to larger corporations that have bigger financial reserves and plans to keep swaths of housing off the market in a monopolistic practice to keep supply low and rent always growing at 3%”
Ok, so let’s also prevent that from happening. Unless you don’t think good things are possible, in which case let’s all just go outside and lay down to wait for the inevitable
If someone buys a home that was rented. Would the cap apply to them? Because this might result in a loophole
That’s a good question. But keep in mind that they’re are significant taxes associated with selling a home in most places that would dissuade landlords from trying to game the system that way. Then again, they’re just one more loophole from making that plan work.
Sounds like that’s by design. If they all wanna sell prices come down on that front as well. Sounds like it should be capped at 2 percent to me.
