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Old 11-24-2017, 02:27 AM
 
64,546 posts, read 66,100,109 times
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they do protect renters in area's with stabilization but that has a whole bunch of other problems and only benefits those with stabilized apartments . it burns everyone else with higher prices . it brought on a shortage of landlords who want to build rentals .
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Old 11-24-2017, 03:31 AM
 
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Quote:
Originally Posted by mathjak107 View Post
they do protect renters in area's with stabilization but that has a whole bunch of other problems and only benefits those with stabilized apartments . it burns everyone else with higher prices . it brought on a shortage of landlords who want to build rentals .

Um, California is not NYC. To the extent local rent controls exist in California, they were mostly enacted AFTER Prop 13, largely in backlash against continually soaring rents; i.e. Prop 13 passed, rents kept going up, angry renters got local rent controls passed. Prop 13 does nothing to protect renters from being priced out, because under Prop 13, only homeowners can prevent reassessment, and renters are powerless in that regard.
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Old 11-24-2017, 03:33 AM
 
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then you shouldn't have lived where you do .

it is all about living a lifetime of poor choices and bad decisions , not local laws .
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Old 11-24-2017, 04:22 AM
 
1,721 posts, read 1,130,560 times
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When markets behave in irrational moves there is usually a reversion to the mean at some point. Actually, maybe the word irrational is incorrect as it makes perfect sense given the Fed's mandate to prop up asset prices by keeping interest rates too low for too long. Home prices have historically increased by 1-2% per year not 20-30%! No one can say this normal.


I certainly understand the Fed's rationale during and following the financial crisis to lowering rates & doing what it can to spur spending back into the economy by inflating asset prices but the Fed's policy should have stopped during Bernake's final years and Yellen should have been raising much sooner. The Fed should be lowering rates during slowdowns and raising rates during expansive times. How high or overvalued does the Fed wish for asset prices to climb? I find it funny how in the latest Fed statement there is concern for equity valuations- RAISE the RATES!!! Why sit back idly & let the train continue increase speed to derail on the next turn?
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Old 11-24-2017, 08:00 AM
 
25,801 posts, read 49,697,815 times
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Originally Posted by oneslip View Post
When markets behave in irrational moves there is usually a reversion to the mean at some point. Actually, maybe the word irrational is incorrect as it makes perfect sense given the Fed's mandate to prop up asset prices by keeping interest rates too low for too long. Home prices have historically increased by 1-2% per year not 20-30%! No one can say this normal.


I certainly understand the Fed's rationale during and following the financial crisis to lowering rates & doing what it can to spur spending back into the economy by inflating asset prices but the Fed's policy should have stopped during Bernake's final years and Yellen should have been raising much sooner. The Fed should be lowering rates during slowdowns and raising rates during expansive times. How high or overvalued does the Fed wish for asset prices to climb? I find it funny how in the latest Fed statement there is concern for equity valuations- RAISE the RATES!!! Why sit back idly & let the train continue increase speed to derail on the next turn?
Raise the rates is music to many of my retired friends... most of my neighbors are 80+ to 104 and live in their homes since the 1960's... about half have everything in CD and the value of their homes...

The 1-2% CD yields have been killing them and it was something they never foresaw... it is huge when you expected 4%, hoped for 6% and get 1%...

They have told me it is criminal to artificially keep rates down because it only helps people that borrow.
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Old 11-24-2017, 08:03 AM
 
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just wait until rates are higher but so is inflation since the two are pretty much joined at the hip .

those counting on just fixed income will still be behind the curve after taxes and inflation .
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Old 11-24-2017, 08:10 AM
 
25,801 posts, read 49,697,815 times
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Originally Posted by freemkt View Post
All I'm suggesting is that renters share in the 'predictability' homeowners enjoy. If government should protect homeowners from being priced out of their homes, why shouldn't government also protect renters from being priced out of their homes? The 40-year homeowner is well-protected under Prop 13...the 40-year renter has zero protection under Prop 13.
Don't know what to say other than Rent Control is very much a part of my entire adult life... and I live in the SF Bay Area a region with some very high rents...

There are several investigative reporters covering fraud in the Low Income Housing... both below market rents and sales.

Seems there is no shortage of those sticking it to Housing Providers renting their below market units to Air-B and B... or moving in "Family" members into units they have not lived in for years.

Prop 13 is tax policy and it is NOT the government protecting anyone... it ONLY came about because the Voters made it so... just like many of the rent control and Just Cause Eviction Statutes.

As an aside... I know units that have been pulled from the market... mostly 2 to 4 family buildings where the owner resides in one unit... the owners simply have been badly BURNED going though the eviction process they no longer rent the units... these are older people and want to live out their lives in peace and having vacant units at sale make the property more valuable...

IMAGINE that... rental property MORE VALUABLE without renters... that is just how screwed up things are.

Forever here you could simply provide proper notice to leave and that was that... now, only approved reason from a short Government List is acceptable and the standard is quite high when there is no city cooperation... such as teenagers Dealing Drugs but you cannot use this information because they are minors so police reports are sealed...
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Old 11-24-2017, 09:34 AM
 
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The government failure in California is lousy public transportation, not lack of intervention in the housing market. Housing prices are sky high because it's so congested that people have to pay a huge premium to live close to where they work. If California had 150 mph commuter rail all over the Bay Area and southern California, people could live 100 miles from where they work and still have an acceptable commute.
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Old 11-24-2017, 07:25 PM
 
Location: 76102
3,200 posts, read 1,485,423 times
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In Fort Worth, there isn't a housing shortage. There is an AFFORDABLE housing shortage.

People like me, income after retirement 30k, can barely qualify for or afford an apartment, even a scroungy one. One bedrooms go for 1200 or better here and you have to have 3x the rent in income.

Make too much money for subsidy, too little to afford a "nice" apartment in a "good" neighborhood.

So I'll just keep my house I guess. Mortgage is 950, rent is 1200 - no brainer.
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Old 11-24-2017, 08:20 PM
 
2,232 posts, read 4,376,864 times
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In many ways, it is a rigged game with real estate now. Please let me explain. There is a shortage as after the crash in 2008/2009 many properties were bought be big investment/real estate companies at pennies on the dollar. We shifted real estate wealth further to the wealthy. Then you have the Federal Reserve put and keep interest rates very low for a substantial period of time, and this constant push for people to buy homes; even if they are house poor. Many now are renting poor, also.

There are still plenty of vacant homes that are kept off the market so not to flood the market like what happened in 2008 and 2009. It is easier to control now, as less people actually own these properties. Fannie and Freddie sold many of these properties in bulk purchases to get rid of them, and sold them for basically nothing. Essentially right now, builders, developers, and others are able to control the supply and keep prices high.

Homeowners for the most part love higher prices, but for new buyers it is difficult to break into the market. If those homeowners downsize they sell for more, but also buy for more. In many areas investors were driving up prices and buying properties for cash and forcing new home buyers to pay more for an entry level home. I'm now seeing areas where most people didn't want to buy, to be "hot" areas because it is one of the few "affordable" areas.
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