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If the investors in rent control don't like the law, then they have the option of voting in the city council members who vote so that the law may be changed.
But also take into account 'all' the people that changing this law would effect in terms of their livelihood.
The poor man has a hard enough time getting a leg up in this world. The small business man, who finds more laws against his success than for it, understands that more than anyone. The rich are rigging the system, so as to weed out competitions.
It is tough to come by affordable housing on a person's part time wage. Many working part time as full time work is not readily available live on the streets, and sleep in their cars.
We keep talking about economics here. In the 80s my father was making $9.00 an hour, top wage in his field. Today many are making $9.00 an hour. Since then the cost of living has increased and just using the fuel prices as an example, we can gauge.
One locking in their mortgage rates for 30 years and rent control all help with the increase cost of living. And people are upset by that? By the rent control law? When will it stop? It won't. The hole we dig gets deeper.
Your father's $9 an hour is likely much more than that now, and the people making $9 an hour now are not the ones in your father's field. Their wage in 1980 was probably near minimum wage at the time which was $3.10. Not a good analogy.
People lock in their mortgage rates for 30 years, so as they do not have an increase in payment. Tell me what is the difference between that and rent control, where as she could (if it had been a mortgage) taken over the payments of the unit?
They don't lock in their payment. If real estate tax is escrowed, and it usually is on a mortgage, the payment increases every year along with the tax. So why doesn't a rent control apartment work the same way?
The amount of the payment doesn't matter ... it's a payment locked in by contract for 30 years. It doesn't increase, it doesn't decrease until a new contract is drawn.
Yes, it does increase. If real estate tax is escrowed, and it almost always is because if a homeowner is behind on taxes the property can be seized by the government and both the homeowner and lender lose out, the payment increases commensurate with an increase in real estate tax. Same with insurance in many cases.
It's not about maximizing profits. It's about being able to meet basic costs like real estate taxes, maintenance, etc. So, while some apartments are rent-controlled, the rent on those that are not have to be jacked up sky-high to make up the costs of ownership.
They purchase the apartments at a discount because there is rent control in there. If they don't like the deal they don't have to purchase it.
They don't lock in their payment. If real estate tax is escrowed, and it usually is on a mortgage, the payment increases every year along with the tax. So why doesn't a rent control apartment work the same way?
"The payments on a fixed-rate mortgage do not change over time." want the source?
Interest rates do not apply to rent control apartments.
Escrow on an apartment complex, is that an asset to the owners?
Your father's $9 an hour is likely much more than that now, and the people making $9 an hour now are not the ones in your father's field. Their wage in 1980 was probably near minimum wage at the time which was $3.10. Not a good analogy.
You're right about the wage in which my father made a career. Starting wage today, is $15.50 (approx) and if they continue in that same field, like that of my father, over the course of 15 - 20 years they could make $22.50 an hour.
Gas prices (cost of living) in 15 years, care to guess a mate?
We live under a debt based economic system. Until the system changes it will be as said in the Bible ... a loaf of bread priced at a man's day wage. The Bible goes on to say, do not touch the wine. Some one years back in religion forum told me, meaning ... the rich will be uneffected. It made since to me.
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