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Old 08-02-2012, 08:50 PM
 
1,595 posts, read 2,528,363 times
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Quote:
Originally Posted by BigJon3475 View Post
I think you're thinking of inflation and the only inflation that affects everything is real inflation and we don't have that right now believe it or not. When we do have real inflation everything will go up including pay all though it will lag behind price increases.

We do have rent inflation right now in many areas because builders can't build multifamily housing fast enough. You're getting droves and droves of people from retiring seniors who are rather well off to former home owners who couldn't afford the homes they had. That trend is expected for the next 5 - 10 years and I'll go out on a stretch and say over 10 years.
I think we have rent inflation because of all the foreclosures and tax increases. I already see everything going up now in that I mean the cost of darn near everything not just rent and taxes. Food prices are getting insane. The other day I had to hire a plumber and nearly fell over when I saw the bill. The electrician I had to hire a few months ago was more expensive per hour.

I see your point though that is part of it but I wasn't considering the retiring Seniors or the people who do eventually need an apartment to rent since they lost their homes. I was speaking about inflation but there's another word for what I am trying to say about everything having an effect on everything. It's like a chain reaction. I don't see more low income housing as a long term problem solver. It's what keeps people from trying to get jobs, though with so much overpopulation it's going to become impossible, eventually, and end up staying in that life. The OP isn't talking about building more multifamily housing for low income families as a temporary basis I think the OP means for life. There wouldn't be enough taxpayers left to pay for them. I do see more apartment buildings being built now and some more condo's but they aren't for low income taxpayer housing. I agree with you too that it will be for at least the next 5 years and maybe 10 I just hope it's not all for taxpayer low income apartments. I like shelters better because I think it will make people more determined to get back on their feet again unless they are Sr. Citizens.

To the thread:
Why stay and be a taxpayer when they can just live/semi rent in an apt. for next to nothing? The thinking will be why should I pay? let them pay for me. That is what I think will eventually happen. I see it now and have seen that attitude grow over time. It does not create wealth especially not for the tenant.

Last edited by Lolipopbubbles; 08-02-2012 at 09:03 PM.. Reason: cut down needless rant
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Old 08-02-2012, 10:44 PM
 
Location: Chandler, AZ
5,801 posts, read 5,816,195 times
Reputation: 3119
The assertion that 'too much regulation prevents landlords from upgrading' is absurd and doesn't hold water'. I know many real estate investors in & around Los Angeles who buy homes, fix them up very nicely with private financing, rent them out for top dollar at market rates, and make a phenomenal living.

Apartment buildings are even more profitable if you do your homework; the key saying in trhe RE biz is that you make money when you BUY real estate as opposed to when you sell it, and our tax code is also a big fat stinkin' 365-days-per-year Christmas present from Uncle Sam for RE investors, as any reasonably competent CPA will tell you.

Given the rock-bottom interest rates out there, an abundance of ridiculous cheap housing (SFRs as well as apartment buildings of all sizes), making a killing in your local RE market is quite doable in many parts of the country, and especially in the Desert Southwest.

Somewhere in the country some landlord is either up to his eyeballs in debt or just tired of being a landlord, and there will always be somebody willing to buy his property, reposition it, and make a very nice living while monitoring his property management firm's overseeing of those properties.
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Old 08-03-2012, 06:09 PM
 
1,595 posts, read 2,528,363 times
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Quote:
Originally Posted by Marv101 View Post
The assertion that 'too much regulation prevents landlords from upgrading' is absurd and doesn't hold water'. I know many real estate investors in & around Los Angeles who buy homes, fix them up very nicely with private financing, rent them out for top dollar at market rates, and make a phenomenal living.

Apartment buildings are even more profitable if you do your homework; the key saying in trhe RE biz is that you make money when you BUY real estate as opposed to when you sell it, and our tax code is also a big fat stinkin' 365-days-per-year Christmas present from Uncle Sam for RE investors, as any reasonably competent CPA will tell you.

Given the rock-bottom interest rates out there, an abundance of ridiculous cheap housing (SFRs as well as apartment buildings of all sizes), making a killing in your local RE market is quite doable in many parts of the country, and especially in the Desert Southwest.

Somewhere in the country some landlord is either up to his eyeballs in debt or just tired of being a landlord, and there will always be somebody willing to buy his property, reposition it, and make a very nice living while monitoring his property management firm's overseeing of those properties.
I disagree with here. Not all landlords have the money to gut out apartments and have it the way they want it for the tenants. There are so many limits as to where and what can be allowed in the apartment that it's too much to even consider doing. When I say upgrade I am talking about ripping out kitchen cabinets and gutting out the bathroom. I'm not talking about painting and replacing flooring and carpets or sinks. A simple thing like getting a water heater now requires a permit. I have had contractors avoid doing jobs I want to hire them to do just because they dread having to get a permit from the town. In this market nobody makes a killing on their home except maybe the landlord who had money before they became landlords and owned garden apartments or those big huge multidwellings. I like to know who I am getting a big fat christmas present when I get stuck with tenants who refuse to pay even though I have nice and I mean nice apartments they live in. The assumption that all landlords are rich and get rich quick from the rents doesn't hold water either. The only time I will ever make money is when I pay off the mortgage and when I sell it.

Also in my town a landlord put in new egress lighting. One would think no problem, right, wrong. He paid to have them installed in the hallway and the town approved but when the State came in they said he had to move the lighting. He nearly went broke trying to fight them and get both to agree as to where to put the egress lighting. The state regulations said one thing and the town regulations said another. It sure as hell wasn't worth it for him. Now try upgrading an apartment and having to fight with that.
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Old 08-03-2012, 08:05 PM
 
19,337 posts, read 16,939,838 times
Reputation: 7515
Quote:
Originally Posted by Marv101 View Post
The assertion that 'too much regulation prevents landlords from upgrading' is absurd and doesn't hold water'. I know many real estate investors in & around Los Angeles who buy homes, fix them up very nicely with private financing, rent them out for top dollar at market rates, and make a phenomenal living.

Apartment buildings are even more profitable if you do your homework; the key saying in trhe RE biz is that you make money when you BUY real estate as opposed to when you sell it, and our tax code is also a big fat stinkin' 365-days-per-year Christmas present from Uncle Sam for RE investors, as any reasonably competent CPA will tell you.
"You make your money when you buy it" is a common truism in many lines of business. Finding a buyer who will pay above the market usually is not going to move as many units as when you buy under the market since everyone will buy.

Quote:
Given the rock-bottom interest rates out there, an abundance of ridiculous cheap housing (SFRs as well as apartment buildings of all sizes), making a killing in your local RE market is quite doable in many parts of the country, and especially in the Desert Southwest.

Somewhere in the country some landlord is either up to his eyeballs in debt or just tired of being a landlord, and there will [b]
Really, you think you can make a killing? All interest rates can do is go up. A property purchased at 7% interest rates while holding steady at 3% is taking real loses even though its not reflected in the nominal value. Same problem with the bond market. There is no upside capital gain. The real estate market has been getting brakes for decades which kept driving values up. They are running out of ways to do this.

You can make money in local markets but the halcyon days for the broad market are over. What you want is 20% interest rates at the top of a long decline in interest rates. It will begin with huge mortgage interest deductions which will later unwind into a big capital gain fueled by cheap credit. I guess you can hope for loser credit but that train has not left the station. Its the suckers that think the time to buy is at the bottom of an interest rate cycle. So you better have organic demand because the tide is against you.
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Old 08-06-2012, 02:53 PM
 
344 posts, read 390,889 times
Reputation: 318
Remember the housing shortages in New York in 1920? Government and housing in the same sentence is a nightmare. WHen Gubment has fixed prices on housing, you have one person living in a 3 bedroom house. When market sets the price, you have one person living in a 1 bedroom.
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Old 08-06-2012, 03:30 PM
 
19,337 posts, read 16,939,838 times
Reputation: 7515
Quote:
Originally Posted by proverbs23and7 View Post
Remember the housing shortages in New York in 1920? Government and housing in the same sentence is a nightmare. WHen Gubment has fixed prices on housing, you have one person living in a 3 bedroom house. When market sets the price, you have one person living in a 1 bedroom.
And when there is a housing tax haven while specifically subsidizing leveraged ownership with tax deductions while penalizing equity ownership, there is 1 person in a house of 10 empty rooms. da guberment......
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