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Not arguing, just stating FACTS. Can you provide a $600 1978 one bedroom rental in Honolulu? I'm waiting for that. And yes, the point is that if you are going to be in Honolulu long term you will be priced out of the market if your income cannot keep up with market rents. Greedy for collecting market rents? No wonder you've done so poorly as a landlord. But hey I'm a smart landlord and know that I can keep my rents slightly under market and keep my long term tenants or replace them at market when they've become priced out (by the market).
Please DON"T confuse inflation rate with rent growth.
Yes my rents are low but I have zero vacancy and zero turnovers. I also have happy tenants that actually respect their landlord so they tend to take great care of their place and pay rent on time, every time. They don't grumble when every little thing breaks; they handle it on their own. Yes, I can raise rents a big clip if I wanted to. But I'm reserving that for the day when I HAVE TO. Right now, I will let everyone enjoy a nice home at a great price and I'll continue to work to pay for my lifestyle as I have no desire to retire.
No confusion on rent/inflation whatsoever. Both rents AND inflation are nowhere near 6% consistently over 30 years. If rents were going up 6% consistently over 30 years and rent is roughly 40% of what people actually SPEND every month, wouldn't you think that may have an impact on the long-term inflation rate of 3.2%? LOL
Let's just look at the past few years - this site suggests a 1 bedroom average within 10 miles of Honolulu was about $1,197 in July 2009 and $1,496 in Feb 2014, not far off 6% increases.....
Yes my rents are low but I have zero vacancy and zero turnovers. I also have happy tenants that actually respect their landlord so they tend to take great care of their place and pay rent on time, every time. They don't grumble when every little thing breaks; they handle it on their own. Yes, I can raise rents a big clip if I wanted to. But I'm reserving that for the day when I HAVE TO. Right now, I will let everyone enjoy a nice home at a great price and I'll continue to work to pay for my lifestyle as I have no desire to retire.
No confusion on rent/inflation whatsoever. Both rents AND inflation are nowhere near 6% consistently over 30 years. If rents were going up 6% consistently over 30 years and rent is roughly 40% of what people actually SPEND every month, wouldn't you think that may have an impact on the long-term inflation rate of 3.2%? LOL
Still waiting on that 1978 $600 one bedroom rent comp! I only said rents were up 6% annually since 1978.
Quite arguing in circles and put up or shut up!
Let's just look at the past few years - this site suggests a 1 bedroom average within 10 miles of Honolulu was about $1,197 in July 2009 and $1,496 in Feb 2014, not far off 6% increases.....
I thought I was clear when I stated that the 6% increases are NOT sustainable OVER 35 years as honobob suggests. Yes, of course they can increase 6% in a year. I never said they can't. Or even 10% in one year. Or 25% over 5 years. The argument I'm making is that 6% AVERAGE SUSTAINED EVERY SINGLE YEAR OVER 35 YEARS is ridiculous. That's a doubling of rent every 12 years. 100% ridiculous.
Thanks for the link though. If you look under "all beds" it's $1622 for 09' and $1859 for 14' which comes to 2.8% increase each year. Lots of cherry pickers here on this site I noticed.
Still waiting on that 1978 $600 one bedroom rent comp! I only said rents were up 6% annually since 1978.
Quite arguing in circles and put up or shut up!
Maybe you forgot what I posted earlier in this same thread TWICE (for the record you stated 6-7% earlier in the thread) -
Quote:
My evidence is actual and real. That's how much my parents paid in 1980 for a home in Hawaii Kai - $1,400 and I'm sure all the other homes were in the same range. Based on your 7% increases, it SHOULD take today's rent for that HK home to $14,000 but oddly it's not at $14,000.. in fact nowhere near it. Oddly enough, a 3% increase would take that rent to $3,825 over that term... which is just about what those homes rent for today. Coincidence? Nope, that's called real data. Let's go forward this time and apply your 7% annual increase another way. Let's say a 2,000 SF home today in Manoa would rent for $5,000. That would mean to meet your 7% figure, that same home in 1980 rented for only $500/mo!!! I don't know how much more of a perspective I can give you before you realize how off your math is.
I did some more research and found out a comparable home on the same street is renting for $4,500/mo. That comes to 3.2% increase per year... which miraculously is right in line with what inflation was over that time. No way, right? Maybe that 2000 SF house in Hawaii Kai rented for $400 and my parents lied? Or the ad for $4,500 is missing a 0? You crack me up.
I thought I was clear when I stated that the 6% increases are NOT sustainable OVER 35 years as honobob suggests. Yes, of course they can increase 6% in a year. I never said they can't. Or even 10% in one year. Or 25% over 5 years. The argument I'm making is that 6% AVERAGE SUSTAINED EVERY SINGLE YEAR OVER 35 YEARS is ridiculous. That's a doubling of rent every 12 years. 100% ridiculous.
A 1978 $600 one bedroom rent comp would sure make you seem less ridiculous. Why are you being so evasive?
Maybe you forgot what I posted earlier in this same thread TWICE (for the record you stated 6-7% earlier in the thread) -
I did some more research and found out a comparable home on the same street is renting for $4,500/mo. That comes to 3.2% increase per year... which miraculously is right in line with what inflation was over that time. No way, right? Maybe that 2000 SF house in Hawaii Kai rented for $400 and my parents lied? Or the ad for $4,500 is missing a 0? You crack me up.
Well I'm not claiming to be the expert of all Oahu so I identified the areas where I am an expert. Now my initial thinking was that $1400 was a lot of rent in 1980 when you could rent a one bedroom in Waikiki for a little better than $200 but then I'm not relying on what my parents told me when I was in grade school.
Again based on YOUR argument of 3% rent growth a $1800 one bedroom in Waikiki/Diamond Head would rent for $600 in 1978. THAT is preposterous.
A 1978 $600 one bedroom rent comp would sure make you seem less ridiculous. Why are you being so evasive?
Because I'm not going to lie and tell you that I have a ONE BEDROOM comp in 1978. All I know is that rents have not increased anywhere near 6% consistently every single year for 35 years. No landlord is consistently doubling rent every 12 years. Why on earth do people not see the absurdity in that? Seriously? Is it all landlords on these forums? Special interest? Justifying rent increases or trying to make their tenants feel special? Stop being so greedy and come back down to earth. Please.
Because I'm not going to lie and tell you that I have a ONE BEDROOM comp in 1978. All I know is that rents have not increased anywhere near 6% consistently every single year for 35 years. No landlord is consistently doubling rent every 12 years. Why on earth do people not see the absurdity in that? Seriously? Is it all landlords on these forums? Special interest? Justifying rent increases or trying to make their tenants feel special? Stop being so greedy and come back down to earth. Please.
So you are stating for a fact that in 1978 it would cost $600 to rent a typical one bedroom apartment in Waikiki/Diamond Head when I rented my first studio in 1977 for $175 with utilities and then leased my own one bedroom in 1982 for $250 through Lani Properties.
Well I'm not claiming to be the expert of all Oahu so I identified the areas where I am an expert. Now my initial thinking was that $1400 was a lot of rent in 1980 when you could rent a one bedroom in Waikiki for a little better than $200 but then I'm not relying on what my parents told me when I was in grade school.
Again based on YOUR argument of 3% rent growth a $1800 one bedroom in Waikiki/Diamond Head would rent for $600 in 1978. THAT is preposterous.
So you're saying your doubling of rents every 12 years is only subject to one bedroom condos in Waikiki? C'mon. That one bedroom in Waikiki for $200 in 1978 was absurdly low. Stupid low. Maybe it was surrounded by drug dealers back then... and you would get high just walking in the hallway and you risked being mugged every night... who knows. But as I stated in previous posts, I am NOT considering massive gentrification/extensive amenity upgrades of properties as part of the equation on rising rents. Rent increases are due to market dynamics and not due to the specific changes (i.e. significant IMPROVEMENTS) of a particular property. If I bought a POS house that rented for $1,500 but I spent $200K rehabilitating it to like-new condition, and then I increased the rent to $3,000 does that mean that "rent" increased 100% in one year? You are literally talking rents increasing 6% due to market dynamics ONLY. That's totally insane.
Last edited by pj737; 05-28-2014 at 08:56 PM..
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I only said rents were up 6% annually since 1978. 
