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A lot of them lost their homes during the recession, for which they are (according to you cons) solely themselves to blame -- i.e. there's absolutely no such thing as "predatory lending."
They are solely to blame.
Voluntarily agreeing to a mortgage contract is just that - VOLUNTARY. It isn't a sentence imposed by a judge for a crime, it isn't something that happens while you're not looking, and it isn't an act of God. Mortgage lenders don't stand in dark alleys and lure passerby naifs into their web. Nope, the borrower seeks the lender out, asks them for a loan, signs/initials a few dozen places for like an hour (how long signing all my mortgage crap took), and that's how they end up with a mortgage. They do all sorts of voluntary actions to wind up holding that contract, and it isn't bad luck or misfortune, it's a freaking choice.
So no, there really isn't predatory lending, because predation assumes an unwilling victim. Gazelles typically do not walk up to cheetahs and beg to be killed. Seals don't normally holler down to the great whites and say "up here, come eat me!!" But borrowers go to lenders and BEG THEM for loans. You simply CANNOT rape the willing.
Caveat emptor.
As for the rest of the thread, middle-aged mom has this one nailed. Just because you want to live some place does not entitle you to live there. I would like a beach home right on the water, as in I jump over a railing, walk 50 feet and am standing in the ocean. Given the $800k-1.2million price tag for the beach I like, yeah, that won't be happening anytime soon, sadly. But I am not entitled to that location, I have to earn it according to what the market supplies and demands. It's pretty simple.
If I own a condo for the purpose of renting, I am going to charge the most rent I can for that location, according to what the market will bear. After all, my profit is why I own that condo, not someone else's convenience. So if Middle Class Mike can only afford $1,000 per month, but Upper Class Oscar will give me $2,000, then Oscar is the big winner of the rental contract. Sorry Mike, come correct with more coin next time. It's my property, and I will put it to the most profitable use I can.
"Even dual-income professional couples are being priced out of the walkable urban-core neighborhoods where many of them want to live".
A part of growing up is realizing that just because you want something, does not mean you are entitled to it.
That's real funny coming from someone in real estate. Did you learn that on the job or just pull it out of your own behind?
Quote:
Originally Posted by Dane_in_LA
Ehm - rents being high tends to indicate a high number of people with available income for housing. Or did the market mechanisms just stop working?
That may have been the case during the housing boom, but right now inflation is a big problem. People's wages have stagnated, but the cost of living keeps going up. To rent an apartment where I live right now is almost two-hundred more a month than it was when I moved here a little over a year ago. I know people who are going to be priced out of living here period. Just because the more affluent folks don't believe it or notice it doesn't mean it's not true.
Also, speaking for where I live, the fact that so many people have lost their homes has put a rental crunch on the available apartments, and these apartment managers can pick and choose and raise the rent as high as they want when they want.
Quote:
Originally Posted by tamajane
Everyone wants to live in a hip city. There are affordable rentals in affordable cities and towns. And affordable real estate, but some are too cool for those places in the south or Midwest. Wah,too cold, too hot, nothing fun to do, not diverse enough, not artsy enough, not enough gourmet restaurants, etc, etc, etc.
Then when they look at apartments they whine if it is not all updated and perfect, so the owners have to invest money to upgrade the apartments and then the rent is going to be higher to cover the costs of coddling the high brow tastes of the renter, who cannot afford to own his own home but insists the rentals be so pristine and in an area that accommodates all his particular tastes and desires.
So yes, rents are high.
No, not everyone wants to live in a hip city. I've lived in real dumpy apartments just to have a place to live. I lived in an apartment that was over a hundred years old where the pipes not leaking every month was a luxury. But there is something appealing and cozy to me about living in a place with some history versus these look-alike paper-cheap modern things they call houses that they build now and sell and rent for a fortune.
No fing kidding. Even here in Columbus, Ohio, rents are about 50% higher than they were in 2008 - if you to live in a good neighborhood. Real estate hasn't risen that much, though, so more people are choosing/forced to rent.
This is one of the big problems for the pro-urbanization crowd. They want people live in the central core. But who can afford to do that in most desirable cities? Mostly high income DINKs.
Add in poor public schools and even families with money won't choose that option.
Then lack of demand should promote affordability, right?
Well naturally a very desirable city with big paying jobs is going to have high rents. A lot of people today have no interest in the suburban life with 2+ hour commute.
Everyone wants to live in a hip city. There are affordable rentals in affordable cities and towns. And affordable real estate, but some are too cool for those places in the south or Midwest. Wah,too cold, too hot, nothing fun to do, not diverse enough, not artsy enough, not enough gourmet restaurants, etc, etc, etc.
Then when they look at apartments they whine if it is not all updated and perfect, so the owners have to invest money to upgrade the apartments and then the rent is going to be higher to cover the costs of coddling the high brow tastes of the renter, who cannot afford to own his own home but insists the rentals be so pristine and in an area that accommodates all his particular tastes and desires.
So yes, rents are high.
Sorry, no, not EVERYONE wants to live in "hip city"! In fact, many people don't want to live in ANY city! That's why so many people want to leave the urban areas and move to Montana, Wyoming, Nevada, etc.
I know a couple who left California, bought 20 acres on a mountain in Montana, and are very happy, even though in the winter they are often stuck and can't get to town!
I know a guy who ran away from CA and moved to Nevada.
I live 5 miles from the City Limits, and wouldn't have it any other way.
I don't think there are any "hip" cities in Montana.
"There are affordable rentals in affordable cities and towns. And affordable real estate, but some are too cool for those places in the south or Midwest. Wah,too cold, too hot, nothing fun to do, not diverse enough, not artsy enough, not enough gourmet restaurants, etc, etc, etc. "
Now, THAT I totally agree with!
Sorry, no, not EVERYONE wants to live in "hip city"! In fact, many people don't want to live in ANY city! That's why so many people want to leave the urban areas and move to Montana, Wyoming, Nevada, etc.
I know a couple who left California, bought 20 acres on a mountain in Montana, and are very happy, even though in the winter they are often stuck and can't get to town!
I know a guy who ran away from CA and moved to Nevada.
I live 5 miles from the City Limits, and wouldn't have it any other way.
I don't think there are any "hip" cities in Montana.
"There are affordable rentals in affordable cities and towns. And affordable real estate, but some are too cool for those places in the south or Midwest. Wah,too cold, too hot, nothing fun to do, not diverse enough, not artsy enough, not enough gourmet restaurants, etc, etc, etc. "
Now, THAT I totally agree with!
We live 35 miles from town....our township has no fire department.
I live in an economically challenged city. I own a few rental properties. I wish I didn't. I can't rent them for enough to turn much of a profit. They are paid for. The taxes have gone up so much that between taxes and upkeep, they are more headache than they are worth. Fact is, renters can't afford what we need to charge to make it worth our while. If I raise the rent, they sit vacant. If I sell them, the tax consequences added under the ACA take too much of my investment. I wish I had never bought them.
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