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Old 05-02-2018, 07:41 AM
 
Location: Philadelphia/South Jersey area
2,287 posts, read 1,040,490 times
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Quote:
Originally Posted by luzianne View Post
Buy your own house, then your payments stay the same and eventually you own the home with no more payments/no rent; only property tax and insurance.
lol and by that time (15-30 years) you begin spending your mortgage payments on upkeep and in many places property taxes force folks to move.
When I finally bailed on NJ my mortgage was 895 a month, my property taxes were $1,100 month. insane.
There is a gorgeous section of southern NJ called Haddonfield, old town, gorgeous victorian houses, big established Oak trees.
Last spring I kept noticing more and more houses up for sale. one or two not unexpected. 10-11??? what's going on.

Called a realtor friend of mine, many homes belonged to senior citizens who can no longer swing the property taxes on a fixed income.

I just think we should stop selling the myth that home ownership is some how cheap and not effected by inflation.
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Old 05-02-2018, 10:36 AM
 
2,360 posts, read 1,030,857 times
Reputation: 2071
Quote:
Originally Posted by aslowdodge View Post
Funny how when a landlord raises rents to keep up with what the market will bear the renters call it greed.
When renters want higher wages for their work it's not greed.
I've never heard a worker go to his employer and say "I'm greedy to accept what you are paying me. Please cut my wages."
Or
"Mr landlord, I'm paying $900 a month rent and all my neighbors are paying $1300 a month for the same apartment. Please accept this extra $400 a month as it's only fair. It's greedy of me to not pay you fair market rent"
na that when you tell your neighbor they are getting ripped off and demand that they pay the 900 a month. Because if the property management can advertise cheaper rent to get you in the place, consistently, then they can keep it at that rate, not increase it on the next renewal. Sorry, i can spot bait and switch price schemes a mile a way.
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Old 05-02-2018, 11:01 AM
 
Location: The analog world
15,640 posts, read 8,764,064 times
Reputation: 20962
Quote:
Originally Posted by eliza61nyc View Post
lol and by that time (15-30 years) you begin spending your mortgage payments on upkeep and in many places property taxes force folks to move.
When I finally bailed on NJ my mortgage was 895 a month, my property taxes were $1,100 month. insane.
There is a gorgeous section of southern NJ called Haddonfield, old town, gorgeous victorian houses, big established Oak trees.
Last spring I kept noticing more and more houses up for sale. one or two not unexpected. 10-11??? what's going on.

Called a realtor friend of mine, many homes belonged to senior citizens who can no longer swing the property taxes on a fixed income.

I just think we should stop selling the myth that home ownership is some how cheap and not effected by inflation.
Not always. My property taxes in Colorado are about $200/month. I spend a similar amount on annual maintenance, so let's say $400/month for me to live in my paid-off house. Single-family homes in my Front Range neighborhood are currently selling for a half-million and up while rents for a one-bedroom apartment are about $1200/month, so this house is very affordable by comparison.
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Old 05-02-2018, 11:26 AM
 
4,110 posts, read 1,722,987 times
Reputation: 11597
Quote:
Originally Posted by Electrician4you View Post
It ends when you buy your own house and lock your basic expenses in for 30 years. I don’t raise my rents every year but I do raise them. I tend to be a bit behind going rate by a few hundred. In one rental I’m about 600 behind going rate which I’m rectifying.

Truthfully it’s not greed. My costs go up every year. Property taxes, vendors, insurance, repairs....all cost money. I just did 10k worth of repairs and upgrades on a rental. You think I’m just gonna eat that and keep the rental 600 below going rate? I don’t think so. Rent went up $200. Tenant is still 3-400 under going rate.
While I have some built in cushion against rent raises I’m not a charity.
This! Mic drop.

/thread.
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Old 05-02-2018, 11:56 AM
 
2,360 posts, read 1,030,857 times
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Quote:
Originally Posted by craigiri View Post
Being a landlord sux....beside that, it's not really a very profitable business. Even real pros (companies, REITS) which buy and manage properties at the best prices possible tend to make only 4-8% per year. Many actually would lose money if not for the tax depreciation.

I think one secret here might be manufactured housing. That doesn't always mean "mobile homes", but rather homes that are factory built and then planted. There is one island near us in Florida where any decent house - even a fixer-upper - starts at about a million. Yet there are a couple nice trailer parks...well kept and very cheap (comparatively).

Of course, you have to be careful about the particular community...you don't want to move into a "barking dogs/meth heads" type of place. But that's more in the past these days. Warren Buffet (famous billionaire) owns a few large house manufacturing companies...so I assume he knows what he is doing.

You should look into that option.
https://www.claytonhomes.com/

If it sux so bad, then why do it? Is the investment worth the hassle? buying up all the homes just to rent them out and complain about the cost of doing business? Honestly, the housing market is partial over inflated due to this problem. Big property management companies buying them up and over selling them.
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Old 05-02-2018, 12:16 PM
 
2,360 posts, read 1,030,857 times
Reputation: 2071
Quote:
Originally Posted by Electrician4you View Post
It ends when you buy your own house and lock your basic expenses in for 30 years. I don’t raise my rents every year but I do raise them. I tend to be a bit behind going rate by a few hundred. In one rental I’m about 600 behind going rate which I’m rectifying.

Truthfully it’s not greed. My costs go up every year. Property taxes, vendors, insurance, repairs....all cost money. I just did 10k worth of repairs and upgrades on a rental. You think I’m just gonna eat that and keep the rental 600 below going rate? I don’t think so. Rent went up $200. Tenant is still 3-400 under going rate.
While I have some built in cushion against rent raises I’m not a charity.

Ask you same question, if the hassle of become a LL sucks, then why do it? Why not have a job and focus on your own home instead of buying up other houses that could have went to the lessor fortunate person? Isnt it "Cost of doing business" to eat up some things for the business? Why not just sell the property so you dont have to worry about keeping up with "the jones aka "market". Just because others around you are jacking it up, doesnt mean you have too, does it?

I just went to a housing auction last weekend in our county, and their was TONS of property management people their. All of them were bidding to see who can pay the most. Win for the county, loser was the poor family that found a house for really good deal for 45k 900sq.3/1. But soon as it come up for auction at the end, hoping they didnt have any buyers left over.. end up going for 85k. Its on the market for rent now, 1200 a month. It really ticked off alot of people at the auction that came to buy a house for themselves only to be out bid by investors that will never step a single foot in it. Fix what is needed to be at code cheap as possible and put it on the market quickly.
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Old 05-02-2018, 12:39 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
28,411 posts, read 50,646,420 times
Reputation: 28674
It was interesting to see that the Vancouver, B.C. "Vacant Home Tax" has failed to improve the availability to residents, but has instead filled the city coffers. The investors are simply paying the tax, as much as $250,000/year.

https://www.seattletimes.com/busines...remain-scarce/
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Old 05-02-2018, 01:15 PM
 
2,360 posts, read 1,030,857 times
Reputation: 2071
Quote:
Originally Posted by Hemlock140 View Post
It was interesting to see that the Vancouver, B.C. "Vacant Home Tax" has failed to improve the availability to residents, but has instead filled the city coffers. The investors are simply paying the tax, as much as $250,000/year.

https://www.seattletimes.com/busines...remain-scarce/
I can see why they do it, keep investors and property managers from buying up homes and just sitting on them, when they can be use now. If they are just going to sit on them, why buy them. Go invest in the stock market if you want to have a nest egg or put in a COD bank account
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Old 05-02-2018, 01:28 PM
 
Location: Boston
5,097 posts, read 1,460,242 times
Reputation: 3735
Quote:
Originally Posted by hitpausebutton2 View Post
I can see why they do it, keep investors and property managers from buying up homes and just sitting on them, when they can be use now. If they are just going to sit on them, why buy them. Go invest in the stock market if you want to have a nest egg or put in a COD bank account
let's start defining what some people can buy or can't buy huh?
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Old 05-02-2018, 01:35 PM
 
2,246 posts, read 1,391,923 times
Reputation: 4900
Quote:
Originally Posted by hitpausebutton2 View Post
I can see why they do it, keep investors and property managers from buying up homes and just sitting on them, when they can be use now. If they are just going to sit on them, why buy them. Go invest in the stock market if you want to have a nest egg or put in a COD bank account
This is great news. You’ve arrived on the economics forums for people to teach you something. Something. Anything. You’ve made it just in time.

Stay a while, and listen.
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