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Old 04-30-2018, 01:44 PM
 
2,360 posts, read 1,027,668 times
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So recently good friend of mine got pushed out of his apt due to rent increase, i know its basic of price and demand, but in the middle is greed? Seems to be a never ending issue, so how does it ever end? Excuses always been find a better job, move out and commute. But the problem still follows. Move out 20 miles to find greener grass, only to be push out again when the city gets bigger and LL keeps raising rents. Think this will ever end? Push out the lesser paying person for the better person that is willing to pay your demanding non-negotiable price?
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Old 04-30-2018, 02:45 PM
 
Location: Philadelphia/South Jersey area
2,280 posts, read 1,036,462 times
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So affordable housing has been an issue since, oh I suspect prehistoric times. maybe the cave men fought it out over the nicest caves. anyhoo
will it ever end? no. because unfortunately we always have poor and folks who are in low income jobs that simply can't afford the housing.
What do you think folks in section 8 are there because they can afford better gigs.

Affordable housing is always an issue.

Now I'm not sure how much "greed" is involved. I only know small real estate investors. they own property usually as a part of their retirement/savings portfolio. most are not super gouging landlords and if they still have a mortgage on the property I would say their profit is slim.

Landlords have overhead also. utilities, taxes etc continue to go up. are they to eat those cost to ensure your friend can stay?
Of course the problem follows, but it's a problem for everyone. My home was reassessed this year, my property taxes will go up 6% in 2019. worse now because I won't be able to write that off. I certainly did not get a 6% raise in salary so my budget just got that much tighter and philadelphia water department is asking for a raise. cha-ching.

oh and tell your friend when he gets to be a homeowner, he will face the same issues. utilities up. property taxes up, add onto maintenance needs.
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Old 04-30-2018, 02:54 PM
 
2,360 posts, read 1,027,668 times
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Quote:
Originally Posted by eliza61nyc View Post
So affordable housing has been an issue since, oh I suspect prehistoric times. maybe the cave men fought it out over the nicest caves. anyhoo
will it ever end? no. because unfortunately we always have poor and folks who are in low income jobs that simply can't afford the housing.
What do you think folks in section 8 are there because they can afford better gigs.

Affordable housing is always an issue.

Now I'm not sure how much "greed" is involved. I only know small real estate investors. they own property usually as a part of their retirement/savings portfolio. most are not super gouging landlords and if they still have a mortgage on the property I would say their profit is slim.

Landlords have overhead also. utilities, taxes etc continue to go up. are they to eat those cost to ensure your friend can stay?
Of course the problem follows, but it's a problem for everyone. My home was reassessed this year, my property taxes will go up 6% in 2019. worse now because I won't be able to write that off. I certainly did not get a 6% raise in salary so my budget just got that much tighter and philadelphia water department is asking for a raise. cha-ching.

oh and tell your friend when he gets to be a homeowner, he will face the same issues. utilities up. property taxes up, add onto maintenance needs.
I agree to some what of your comments, as i was recently pushed out from my apt a few years ago, rent goes up, but pay check doesnt. Move to greener grass myself and the 30 min drive kinda gets old but im not spending more $$ for same amount of space. Its like night and day on rent pricing from were i was to were i am now. $300+ difference and that doesn't include the high price electricity, similar to your water issue. But in a real world, shouldnt checks go up when you jack up other things? or is that dipping into your retirement plan? and dont want to share. ( looking at you CEO's)
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Old 04-30-2018, 05:17 PM
 
3,460 posts, read 1,980,913 times
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Since when have wages (or SS or even welfare payments) ever kept with the real cost of things?

Even the CPI doesn't count things like a load of bread, a gallon of milk, a gallon of city water and sewer, etc very well.

So you move, get a better job, an additional job to make your housing affordable.

In many areas, a mortgage is below the cost of renting.

Renters don't realize as the poster pointed out, that the 'LL s expenses go up, so due the rents. So it also can happen that supply and demand trigger rates.

I'm a homeowner now, but my taxes and insurance and thusly my mortgage payment escrow go up every year. When I rented, rent went up every year.

I actually had wage regression this year too. Oh sure. I got a raise, a token raise, but compared to the percentage and dollar amount over the new minimum wage is less than I was making over minimum last year. I only got the raise last year at year end to cover the cost of increased minimum.

If I was renting my house out, you betcha in going to rent to the highest bidder, and when costs go up, I'll rerent to the new highest bidder.

I was forced out one cottage I was renting. Why? Because the 'LL raised the rent to a level i could not afford. And he knew it. Even though the year before I was able to help him pay off his taxes owed by giving him $3500k above my regular rent from the sale of an older vehicle I owned but didnt drive anymore. He knew i could not pay his new asking price. And I was a good tenant. Rent always on time, I ran errands for him, and took care of the yard for the whole property ( the cottage was behind his house) even though it wasn't in my month to month lease to do so. He died 3 months after he kicked me out. I like to think that was his pay back for kicking me out. lol

Supply/demand and costs to run a property dictate the rents.

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Old 04-30-2018, 05:57 PM
 
2,360 posts, read 1,027,668 times
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Quote:
Originally Posted by galaxyhi View Post
Since when have wages (or SS or even welfare payments) ever kept with the real cost of things?

Even the CPI doesn't count things like a load of bread, a gallon of milk, a gallon of city water and sewer, etc very well.

So you move, get a better job, an additional job to make your housing affordable.

In many areas, a mortgage is below the cost of renting.

Renters don't realize as the poster pointed out, that the 'LL s expenses go up, so due the rents. So it also can happen that supply and demand trigger rates.

I'm a homeowner now, but my taxes and insurance and thusly my mortgage payment escrow go up every year. When I rented, rent went up every year.

I actually had wage regression this year too. Oh sure. I got a raise, a token raise, but compared to the percentage and dollar amount over the new minimum wage is less than I was making over minimum last year. I only got the raise last year at year end to cover the cost of increased minimum.

If I was renting my house out, you betcha in going to rent to the highest bidder, and when costs go up, I'll rerent to the new highest bidder.

I was forced out one cottage I was renting. Why? Because the 'LL raised the rent to a level i could not afford. And he knew it. Even though the year before I was able to help him pay off his taxes owed by giving him $3500k above my regular rent from the sale of an older vehicle I owned but didnt drive anymore. He knew i could not pay his new asking price. And I was a good tenant. Rent always on time, I ran errands for him, and took care of the yard for the whole property ( the cottage was behind his house) even though it wasn't in my month to month lease to do so. He died 3 months after he kicked me out. I like to think that was his pay back for kicking me out. lol

Supply/demand and costs to run a property dictate the rents.

Seem the go to excuse to tell others. We can do that every where we go and back in the same situation. But when both parents are working, their should be zero reason why we need to double up on other jobs to put bread on the table. Compare to other nations, were the sole country that is in an era that pretty much forces a person to have 2-3 jobs to eat. So what changed from the 50s-60s were a single income can pay for a home, buy a car and get food for the month. O that thing we call inflation. Lets inflate something that isnt real or tied to a commodity and pretend its worth that price.

But back to your cottage situation, i get it rent goes up base on the cost of the place, but comes a time is that extra $50 a month increase worth the risk of pushing out your renter that been dedicated such as your situation, and have a vacate building for a few months?
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Old 04-30-2018, 07:03 PM
 
Location: Port C
2 posts, read 1,267 times
Reputation: 12
Default rent

Check the property tax history in your area - the only thing that put a halt to rising property taxes was the RE crash in 2008. Between taxes, levies, assessments, and insurance costs, landlords have plenty of reasons to raise rents even when wages are stagnant. Add to that the risks inherent in letting strangers occupy your property, it's a tough way to make a living.
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Old 04-30-2018, 07:18 PM
 
2,240 posts, read 1,386,969 times
Reputation: 4894
Quote:
Originally Posted by hitpausebutton2 View Post
So recently good friend of mine got pushed out of his apt due to rent increase, i know its basic of price and demand, but in the middle is greed? Seems to be a never ending issue, so how does it ever end? Excuses always been find a better job, move out and commute. But the problem still follows. Move out 20 miles to find greener grass, only to be push out again when the city gets bigger and LL keeps raising rents. Think this will ever end? Push out the lesser paying person for the better person that is willing to pay your demanding non-negotiable price?
Would you take a raise of 20% tomorrow from your employer? Or would you keep their cost down and work for the same every year? If your market value continued to go up and you were worth another 10% the following year would you again pass on making more money?
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Old 04-30-2018, 08:24 PM
 
8,519 posts, read 2,389,571 times
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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/
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Old 04-30-2018, 09:04 PM
 
6,166 posts, read 3,251,225 times
Reputation: 12507
Quote:
Originally Posted by eliza61nyc View Post
So affordable housing has been an issue since, oh I suspect prehistoric times. maybe the cave men fought it out over the nicest caves. anyhoo
will it ever end? no. because unfortunately we always have poor and folks who are in low income jobs that simply can't afford the housing.
What do you think folks in section 8 are there because they can afford better gigs.

Affordable housing is always an issue.

Now I'm not sure how much "greed" is involved. I only know small real estate investors. they own property usually as a part of their retirement/savings portfolio. most are not super gouging landlords and if they still have a mortgage on the property I would say their profit is slim.

Landlords have overhead also. utilities, taxes etc continue to go up. are they to eat those cost to ensure your friend can stay?
Of course the problem follows, but it's a problem for everyone. My home was reassessed this year, my property taxes will go up 6% in 2019. worse now because I won't be able to write that off. I certainly did not get a 6% raise in salary so my budget just got that much tighter and philadelphia water department is asking for a raise. cha-ching.

oh and tell your friend when he gets to be a homeowner, he will face the same issues. utilities up. property taxes up, add onto maintenance needs.
The new tax cut bill still allows property tax deductions on a residence, up to $10k. There is no such limit on the property tax deduction for rental landlords. Also, the new tax cut bill gives benefits in a big way rental landlords who are sole proprietors (individual owners). So things just got much better for rental landlords.
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Old 04-30-2018, 09:52 PM
 
16,492 posts, read 17,513,441 times
Reputation: 23546
Quote:
Originally Posted by hitpausebutton2 View Post
So recently good friend of mine got pushed out of his apt due to rent increase, i know its basic of price and demand, but in the middle is greed? Seems to be a never ending issue, so how does it ever end? Excuses always been find a better job, move out and commute. But the problem still follows. Move out 20 miles to find greener grass, only to be push out again when the city gets bigger and LL keeps raising rents. Think this will ever end? Push out the lesser paying person for the better person that is willing to pay your demanding non-negotiable price?
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.
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