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Old 07-26-2012, 05:15 AM
 
5,190 posts, read 4,368,314 times
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I am struggling to work the rent/mortgage system out.

How does paying rent/being a landlord actually create wealth?

for instance, if someone were to own several properties, rent them all out and then live off the proceeds; how does that actually help the economy?

I can't see how it creates any jobs.

What am I missing here?

thanks
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Old 07-26-2012, 10:33 AM
 
Location: Vallejo
16,252 posts, read 18,201,870 times
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Someone built the several properties. Someone manages the properties. Various people make the repairs and do the upkeep on the properties. The properties were mostly likely financed, more jobs there.
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Old 07-26-2012, 12:20 PM
 
Location: Here.
15,454 posts, read 14,020,146 times
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Seriously? You don't understand how buying and selling products and services can be the basis for an economic system?

God help us!
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Old 07-26-2012, 12:57 PM
 
16,540 posts, read 10,157,033 times
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Quote:
Originally Posted by Kenneth-Kaunda View Post
I am struggling to work the rent/mortgage system out.

How does paying rent/being a landlord actually create wealth?

for instance, if someone were to own several properties, rent them all out and then live off the proceeds; how does that actually help the economy?

I can't see how it creates any jobs.

What am I missing here?

thanks
Why do you think it's their job to create jobs?
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Old 07-26-2012, 04:49 PM
 
13,390 posts, read 16,837,833 times
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Quote:
Originally Posted by Kenneth-Kaunda View Post
I am struggling to work the rent/mortgage system out.

How does paying rent/being a landlord actually create wealth?

for instance, if someone were to own several properties, rent them all out and then live off the proceeds; how does that actually help the economy?

I can't see how it creates any jobs.

What am I missing here?

thanks
You assume "creating jobs" is all one can do to help the economy.....the landlord living off the proceeds would be money going into the economy...and if he declared his rental income , he'd pay taxes on that wouldn't he?...more money into the economy......never mind that someones got a home....As for creating wealth for the landlord....I would think owning several homes and renting them out would be a good way for him/her to create personal wealth.
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Old 07-26-2012, 04:59 PM
 
491 posts, read 2,137,561 times
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Let's see, I pay taxes, hire a CPA, hire plumbers, electricians, handymen, painters, housekeepers, pest control service, pay HOA fees, buy new furnaces, appliances, miscellaneous repair services, etc. I go out to eat with my hard-earned money, I purchase things. I use RE agents once in awhile. I buy advertising, insurance, carpets. I play the stock market and pay taxes on capital gains and dividends. I am providing nice places to live.
- Signed me, Lipstick Capitalist.
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Old 07-26-2012, 08:51 PM
 
5,190 posts, read 4,368,314 times
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Originally Posted by Retroit View Post
Seriously? You don't understand how buying and selling products and services can be the basis for an economic system?

God help us!
What I want to do is compare the private market system of rent/mortgage with socialised housing.

do you think a mix of socialised housing (say 50% of the market) and private housing would be better/worse and why?

for instance, how does paying money to a private landlord help the economy more than by having it managed by a government agency?
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Old 07-26-2012, 08:56 PM
 
491 posts, read 2,137,561 times
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Quote:
Originally Posted by Kenneth-Kaunda View Post
What I want to do is compare the private market system of rent/mortgage with socialised housing.

do you think a mix of socialised housing (say 50% of the market) and private housing would be better/worse and why?

for instance, how does paying money to a private landlord help the economy more than by having it managed by a government agency?
How old are you? Do you remember anything about the Soviet Union?
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Old 07-26-2012, 08:59 PM
 
5,190 posts, read 4,368,314 times
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I believe that the SU went for virtually 100% socialised housing, so not the same thing.

Perhaps the 50% could be lowered to around 30% - how would you feel about that idea?
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Old 07-26-2012, 11:37 PM
 
13,390 posts, read 16,837,833 times
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I'd bet a "private" landlord would spread the money around more (like PureHapa said)...with the gov you never know...could end up anywheres...maybe even in someones "back pocket"
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