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??? According to Mortgage News Daily half of all low-income renters spend at least HALF their income on shelter. What do you call that if not out of control?
The key word is low income. Low income folks not being able to afford shelter is usually because they are being paid diddly. Increase the minimum wage.
Everyone else, they need to get some roommates or stop thinking they deserve to live in Manhattan, Boston, DC, or San Francisco.
Only because you think straw man fallacies and wildly illogical arguments make any sense.
Quote:
Originally Posted by freemkt
Let's say they do NOT voluntarily agree to a mortgage contract, i.e. they continue renting. Within, say, five years, rents will continue rising to the point where rents will be way higher than whatever they would have paid if they had signed the mortgage. Now the rent is unaffordable and they become homeless.
Renting allows them to move whenever they want. Why must one stay in a rent year after year if it stops being economically viable? Oh that's right...they CHOOSE to stay in a rent that is growing faster than their zero growth in wages. Why not get a roommate? Oh that's right...they CHOOSE not to get a roommate. Why not get two roommates, save money for a down payment and get that mortgage? Oh that's right...they CHOOSE not to. Why not save money on frivolity, focusing on the bare essentials, and build a down payment nest egg that way? Oh that's right...they CHOOSE not to.
Sorry dude, but the perpetual renter, no advancement of salary, no building of savings individual is that way by choice. Lots and lots and lots of choices. The owner who rents, they got there by choice as well. Lots and lots of choices.
We are not assigned some immutable destiny and fixed life outcome at birth. The good Lord (or Nature, or the Flying Spaghetti Monster, or just the laws of probability) gives us free will, and with that free will, we exercise choice to shape tomorrow, and the day after, etc. If after 5 years, you are sitting in rented apartment you no longer can afford, a veritable slew of your repeated choices, day after day, year after year are why.
And you're right, it is fun to smack you with logic bats. I LOVE, as in adore, verbally jousting with the chronically lazy who feel entitled to have the world's luxuries delivered to them while they spend life in front of the PS3, hitting the bong and complaining how life never gives them a break.
newsflash - people do not buy rental property to be benevolent, they do it to earn profit and amass equity. Your lack of motivation to improve your salary or station is not a property owner's concern, because if you won't pay the rent they seek, then someone else will, so GTFO. Given the way the world actually works, you'd be further ahead to work hard and amass skills than to spend any more time whining about how unfair life is.
Quote:
Originally Posted by freemkt
Their own fault, since they voluntarily agreed to not buy and to rent, right?
Absolutely their fault. For many reasons, all of which center around their choices. But we already covered that.
For some folks, yes. Living in their car should be the spark that motivates them to earning better wages, to afford to not live in their car. I once lived in my car. 4 weeks total, truth be told, a whole lifetime (27 years) ago. I now live in a modest, fixed mortgage home that is ~12% of my wife and I's take home income. Things change for those willing to work at changing them, I am living proof.
Nobody buys a rental property to make sure everyone else has a cheap place to live. You do it for profit and for equity investment. Period. Rents can and will raise because of many factors, all of which affect the profitability and investment security of the owner. The local school board issues a tax levy like my neighborhood has 9 of the last 11 years? Yep, your rent just went up. Water company just decides to double their prices since they are a government protected monopoly, and water is included with your rent? Yep, your rent just went up. As cost goes up, revenue must go up as well in order to maintain profit. It's a hard world, so buckle your chin strap.
Let's say they do NOT voluntarily agree to a mortgage contract, i.e. they continue renting. Within, say, five years, rents will continue rising to the point where rents will be way higher than whatever they would have paid if they had signed the mortgage. Now the rent is unaffordable and they become homeless.
Their own fault, since they voluntarily agreed to not buy and to rent, right?
I will say this. Of the people that I know/know of, that have lost a home to foreclosure....it was either do to an ARM loan, rates changed and they were no longer able to afford the payment. Or, they went to the max amount of what they were approved for (which is not a good idea). I also know in different parts of the Country people purchased homes for more than the home was worth.
It is a good idea for a household that has 2 working adults, too only budget on the highest income.....the lower income not being included in the budget amount. This gives a cushion for those 'what if's'.
For some folks, yes. Living in their car should be the spark that motivates them to earning better wages, to afford to not live in their car.
I've lived in my car for a bit myself.
Quote:
Originally Posted by Volobjectitarian
I once lived in my car. 4 weeks total, truth be told, a whole lifetime (27 years) ago. I now live in a modest, fixed mortgage home that is ~12% of my wife and I's take home income. Things change for those willing to work at changing them, I am living proof.
Times were different then. The pie is shrinking now less the effects of the current printing binge. You can work harder than others and stay ahead of the shrink. But for those that can't work as hard, 50% are below average, the macro economic situation needs to be changed.
Quote:
Originally Posted by Volobjectitarian
Nobody buys a rental property to make sure everyone else has a cheap place to live.
I have proposed this to my business partners.
Quote:
Originally Posted by Volobjectitarian
You do it for profit and for equity investment. Period. Rents can and will raise because of many factors, all of which affect the profitability and investment security of the owner. The local school board issues a tax levy like my neighborhood has 9 of the last 11 years? Yep, your rent just went up. Water company just decides to double their prices since they are a government protected monopoly, and water is included with your rent? Yep, your rent just went up. As cost goes up, revenue must go up as well in order to maintain profit. It's a hard world, so buckle your chin strap.
I will say this. Of the people that I know/know of, that have lost a home to foreclosure....it was either do to an ARM loan, rates changed and they were no longer able to afford the payment. Or, they went to the max amount of what they were approved for (which is not a good idea). I also know in different parts of the Country people purchased homes for more than the home was worth.
It is a good idea for a household that has 2 working adults, too only budget on the highest income.....the lower income not being included in the budget amount. This gives a cushion for those 'what if's'.
Don't be house poor.
100% agreed!!!
From about 2000 until 2008/2009 we drilled many wells for HUGE homes.
I know one case I thought the people must be muti- millionaires....after talking to them...he was a line cook and she did home help care as an aide.
The restaurant he worked in closed....they lived in the home about two years.
The real question is, why is rent so expensive anyway? That is simple, supply and demand.
Government regulations sharply reduce supply by making it difficult or unaffordable to build new houses, especially low-income housing. And government controlled finance artificially increases demand in an attempt to keep prices high.
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