that will make it easier for people to buy, and even harder to rent. Ie. that will worsen the problem.
EDIT: it’s apparent that Lemmy users don’t understand why someone would actively want to rent, and think everyone wants to buy. This makes the entire topic very difficult to discuss.
What do you think drives the price of rentals? Not being able to afford to buy keeps people stuck in rental living where they can be price gouged. If the price of houses drops due to an oversupply, more renters will buy, which reduces demand for rentals, which will drive down the price of rent making it more affordable to rent.
Landlords hording property reduces the supply to people who want to buy. This shortage reduces the supply:demand ratio, which drives prices higher. Higher house prices informs the price of rent which is controlled by the people creating the shortage.
People aren’t suggesting to abolish investment property, they are simply saying we should remove the abuse investment.
The entry cost of the housing market is a greater driver of rent than vacant rental properties. The laws even encourage property owners to leave a property empty than lower the rent.
Wait a second. You think that if large-scale landlords have to sell property, that will magically make it harder for other people to buy it? Now now. You can do better.
There’s very few cases where renting is the best option, and for that group they usually are well off enough to have options.
Society is concerned with folks who can’t afford to buy a home right now, even with the mortgage price being less than the cost to rent in some cases. That group has no other options, and because that group is expanding at the moment, its increasingly likely to be affected either personally or via those in your community.
I was having trouble understanding what you meant because you didn’t think about the obvious implications of millions of properties being unloaded in a short time.
If the number of landlords drastically increases, which would happen when you have mass property sales, then there’s more competition, and rent goes down.
Or, depending on your setup, the government seizes some of the properties that people refuse to sell, and turns them into public housing. This also drives rent down.
So then, what happens? Oh yeah, both buyers and renters win. Was that clear enough? Perhaps I should write in all caps.
The point is that it doesn’t solve the problem. The problem is one, we don’t have enough housing supply, and two, the housing supply is largely controlled by parasites (big and small) who profit off their ownership.
Getting rid of landlords solves half the problem but you still have a large group of people who cannot afford to buy homes. You might think that’s good because housing prices will crash but who’s going to build homes when no one can afford to buy them?
I’m not saying I have all the answers but I know for sure that getting rid of landlords is not a silver bullet solution.
Well mortgages and rent costs are pretty close these days aren’t they? Its the down payment and closing costs that price people out of buying a home then? Why not take away the down payment requirements so that renters could participate in the buying market. Maybe there can be deals where someone sells you there home for 1-2 years for 50% market rate but they have to give the house back at the end of the term?
I think the point being made is that this landlord stuff almost rarely works out well these days so why not change?
that will make it easier for people to buy, and even harder to rent. Ie. that will worsen the problem.
EDIT: it’s apparent that Lemmy users don’t understand why someone would actively want to rent, and think everyone wants to buy. This makes the entire topic very difficult to discuss.
What do you think drives the price of rentals? Not being able to afford to buy keeps people stuck in rental living where they can be price gouged. If the price of houses drops due to an oversupply, more renters will buy, which reduces demand for rentals, which will drive down the price of rent making it more affordable to rent.
supply. and I look at growing population + foreign investment + rising post-covid building costs.
you’re talking about shifting rentals to buys, which is stupid, because it flat out ignores lack of supply. we need more housing.
Landlords hording property reduces the supply to people who want to buy. This shortage reduces the supply:demand ratio, which drives prices higher. Higher house prices informs the price of rent which is controlled by the people creating the shortage.
People aren’t suggesting to abolish investment property, they are simply saying we should remove the abuse investment.
but landlords “hording” property increases the supply to people who want to rent, which drives prices down.
The entry cost of the housing market is a greater driver of rent than vacant rental properties. The laws even encourage property owners to leave a property empty than lower the rent.
Wait a second. You think that if large-scale landlords have to sell property, that will magically make it harder for other people to buy it? Now now. You can do better.
TO RENT IT. jfc. I said rent. what the hell is wrong with you?
There’s very few cases where renting is the best option, and for that group they usually are well off enough to have options.
Society is concerned with folks who can’t afford to buy a home right now, even with the mortgage price being less than the cost to rent in some cases. That group has no other options, and because that group is expanding at the moment, its increasingly likely to be affected either personally or via those in your community.
false.
Buying would be easier, renting not so much. They are different markets.
I swear, these people are functionally illiterate. Thanks.
also, I said EASIER TO BUY.
EASIER TO BUY.
HARDER TO RENT.
Can you hear me now?
I was having trouble understanding what you meant because you didn’t think about the obvious implications of millions of properties being unloaded in a short time.
If the number of landlords drastically increases, which would happen when you have mass property sales, then there’s more competition, and rent goes down.
Or, depending on your setup, the government seizes some of the properties that people refuse to sell, and turns them into public housing. This also drives rent down.
So then, what happens? Oh yeah, both buyers and renters win. Was that clear enough? Perhaps I should write in all caps.
false.
That was … not convincing. I’m here to learn things. Why are you?
Hmmm
not my quote.
More supply of houses for sale will make it easier to buy.
Buying is not renting.
Removing rentals from the supply makes renting harder and more expensive.
But right now the situation is people who want to own homes being forced to rent, not people who want to rent being forced to buy a home.
The point is that it doesn’t solve the problem. The problem is one, we don’t have enough housing supply, and two, the housing supply is largely controlled by parasites (big and small) who profit off their ownership.
Getting rid of landlords solves half the problem but you still have a large group of people who cannot afford to buy homes. You might think that’s good because housing prices will crash but who’s going to build homes when no one can afford to buy them?
I’m not saying I have all the answers but I know for sure that getting rid of landlords is not a silver bullet solution.
Well mortgages and rent costs are pretty close these days aren’t they? Its the down payment and closing costs that price people out of buying a home then? Why not take away the down payment requirements so that renters could participate in the buying market. Maybe there can be deals where someone sells you there home for 1-2 years for 50% market rate but they have to give the house back at the end of the term?
I think the point being made is that this landlord stuff almost rarely works out well these days so why not change?
no.
that is not THE situation. That is A situation.
it ignores foreign students wanting to rent while they study.
it ignores people renovating and needing a place to live for 3-5 months.
it ignores people needing a place to live after they move to a new city for work while they shop around to buy a place.
so much ignored.
Soooo many landlords just eager for those 3-5 month rental contracts.
/s
heh, yeah, which is yet another problem!
Pretty sure renting is what townhouses and apartments are for. Single family homes don’t need to be rentals at the rates they are now.