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In post 190, I break it down. If the lease has a 3x income to rent ratio requirement, then you have to up your income by 3 times the increase to stay in the ratio
Yes, I saw that. That could have been how my father-in-law came up with the idea, that actually works as I use it, when looking for affordable rent.
Quote:
Originally Posted by Moth
Are you serious?
Yes, I am.
btw: they can also renegotiate the terms of the mortgage payments to extend another 30 years.
Because she could not buy that apartment for a $100 a month mortgage?
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.
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.
In this case, it was a woman who convinced an old, dying man to adopt her at 58 yrs old and took over his $100 rental. That likely does not even cover the taxes on the unit.
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.
The amount doesn't matter? It matters to her and it matters to the owner. It most certainly matters to the bank that would be giving the loan.
You are comparing two different things and expecting us to take it seriously.
A Rent Controlled unit is an example of a what economists call a Price Ceiling. The state mandates that the price for a particular good (in this case an apartment) cannot rise above their mandated level. Price Ceilings usually result in scarcity. One reason why it is nearly impossible to find an affordable place in NYC.
A Mortgage is neither a Price Ceiling nor a Price Floor. It is a Loan. A loan between the buyer (borrower) and a financial institution (lender).
The two have nothing to do with one another.
There was time when I did not understand basic economics. Rather than shoot my mouth off at parties or go on the internet making the most inane comparisons, I chose to read up on the subject and get a basic understanding.
In this case, it was a woman who convinced an old, dying man to adopt her at 58 yrs old and took over his $100 rental. That likely does not even cover the taxes on the unit.
The 58 yr old woman could have gone to a mortgage company and said I'd like to take over the mortgage. However, this is not a mortgage (all though rent control acts like one) but it is a contract, one in which the investor knows exist.
You are comparing two different things and expecting us to take it seriously.
A Rent Controlled unit is an example of a what economists call a Price Ceiling. The state mandates that the price for a particular good (in this case an apartment) cannot rise above their mandated level. Price Ceilings usually result in scarcity. One reason why it is nearly impossible to find an affordable place in NYC.
A Mortgage is neither a Price Ceiling nor a Price Floor. It is a Loan. A loan between the buyer (borrower) and a financial institution (lender).
The two have nothing to do with one another.
There was time when I did not understand basic economics. Rather than shoot my mouth off at parties or go on the internet making the most inane comparisons, I chose to read up on the subject and get a basic understanding.
I leave you with the same advice.
All you have managed to do (other than the obvious which I must ignore) is give to me vocabulary and definitions.
Whether it is a rent control contract or a mortgage contract that locks in the rates, rates are locked. All parties involved are aware of the contract. The only way a rate can change is if the parties sign a new contract.
If the investor comes to realize he can not live and meet the responsibilities of his investment he should pull out and sell.
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