The Cost of Renting (Is Too Damn High!)

[SandalsParticipant 4254]

High rent only exists in a decaying society. All the costs from foreigners, welfare, crime, graft, degeneracy, alimony, bail-outs, fractional reserve derivatives, and third-worldism lead to higher insurance, bailouts, and inflation, and lower service, national pride, and and social order. It’s everywhere… notice how small a can of coke is now? That’s inflation. Things that used to come in glass are now sold in plastic. That’s inflation.

Beer wrote:

Well supply and demand is working. If you want to live in a downtown city area where there are lots of people and limited living space…you have low supply high demand so as long as vacancy rates remain low they can raise rents perpetually. Most of the country you can find decent 1 bedroom apartments for under 1k a month.

That’s government / bank monopoly working. Land is bountiful and demand is comparatively low – rents should be EXTREMELY low, ESPECIALLY in the city, where a builder can earn from multiple supply units that go UP in a very small land area.

When the government gives free perpetual taxpayer bailouts to Tooll Brothers and other home builders to build at will, that is not supply and demand. That is communism. Throw ridiculous taxes on the fire, factor in white-flight, and you got yourself a dead society, economically and morally, with rents that make us indentured servants. That is where we are.

[FunInTheSunParticipant 8286]

If you can afford $1000 a month:

"I saw that there comes a point, in the defeat of any man of virtue, when his own consent is needed for evil to win-and that no manner of injury done to him by others can succeed if he chooses to withhold his consent. I saw that I could put an end to your outrages by pronouncing a single word in my mind. I pronounced it. The word was ‘No.’" (Atlas Shrugged)

[FunInTheSunParticipant 8286]

1 Bedroom apartments in the Los Angeles, CA area:

http://www.rent.com/california/los-angeles-apartments/1-bedroom_min-price-500_max-price-1500?page=3

If you’re single & making minimum wage. Good luck.

"I saw that there comes a point, in the defeat of any man of virtue, when his own consent is needed for evil to win-and that no manner of injury done to him by others can succeed if he chooses to withhold his consent. I saw that I could put an end to your outrages by pronouncing a single word in my mind. I pronounced it. The word was ‘No.’" (Atlas Shrugged)

[BeerParticipant 11832]

Sandals wrote:

That’s government / bank monopoly working. Land is bountiful and demand is comparatively low – rents should be EXTREMELY low, ESPECIALLY in the city, where a builder can earn from multiple supply units that go UP in a very small land area.

I think you have it backwards…rents tend to be higher in cities because they have the highest population densities. Land in an area with 25,000 people per square mile living on it is going to cost more than an area where you have 30 people per square mile. My buddy in Arizona for example rents a house and a couple acres for less money than an apartment cost up here in New England…but he’s out in the desert with a lot less people.

You have to also remember that most of the cities people think about when they think about ridiculous rent are also liberal cities with tax and spend democrats in charge. Property taxes have a direct impact on rent. Having large multi-unit buildings really doesn’t mean they can give you super cheap rent if they are getting socked for 8000 a year in property taxes per unit.

Only way rents go down in any area is when people start moving out and you start to get a large number of vacancies…of course if too many people leave than you end up with Detroit.(again…ran by tax and spend democrats)

[hollowtipsParticipant 681]

The problem with populism and more people moving to the city, theirs less space and more demand for it. Eventually poor people and millennial will be forced to go homeless or leave cities. I literally asked a guy today do you think it’s better to rent as opposed to owning property and he said it’s a dicey argument both ways. To which I agree. No one should give an entire paycheck solely to renting out a place.

The place I’m renting out now is 625 and it’s shared with 4 other people at the moment. I’m seriously debating on getting a mortgage and buying a house.

[BeerParticipant 11832]

hollowtips wrote:

The problem with populism and more people moving to the city, theirs less space and more demand for it. Eventually poor people and millennial will be forced to go homeless or leave cities.

Or just move to a cheaper city. Not everywhere is ridiculously expensive like NYC or LA.

hollowtips wrote:

I literally asked a guy today do you think it’s better to rent as opposed to owning property and he said it’s a dicey argument both ways. To which I agree. No one should give an entire paycheck solely to renting out a place.

An entire paycheck towards a mortgage isn’t much better. Only time though that renting really wins IMO is if you only plan on being somewhere a few years and moving as you probably won’t build enough equity to pay for any closing costs/realtor fees associated with buying/selling the property.

If you buy a place to live, live there for 5 years, and you are lucky you build some equity from your payments and your property value goes up so you get extra money from appreciation as well when you sell. Worst case scenario the real estate market crashes again and you just walk away and let the bank eat the loss. As long as you can come up with a down payment a monthly mortgage payment is generally going to be about equal to or less than renting something similar in the same area.

hollowtips wrote:

The place I’m renting out now is 625 and it’s shared with 4 other people at the moment. I’m seriously debating on getting a mortgage and buying a house.

A guy I used to work with bought a 5 bedroom house as soon as he could qualify for the mortgage in his early 20s. He rented 4 of the bedrooms out and lived in one himself…the rent literally paid his mortgage+ when he had all 4 rooms rented and he loved it because it was like a non stop party at his house.

As he got a little older though he got sick of it, so he sold the house, bought a condo for cash with some of the equity, and still had money left over to throw in the bank. Over a decade of doing that, the guy probably came out at least 100k ahead of where he’d have been if he just rented that whole time instead.

[FunInTheSunParticipant 8286]

Super high rents:

http://money.cnn.com/gallery/real_estate/2016/04/01/cities-with-highest-rents/

The landlords must be happy!

"I saw that there comes a point, in the defeat of any man of virtue, when his own consent is needed for evil to win-and that no manner of injury done to him by others can succeed if he chooses to withhold his consent. I saw that I could put an end to your outrages by pronouncing a single word in my mind. I pronounced it. The word was ‘No.’" (Atlas Shrugged)

[SandalsParticipant 4254]

Beer wrote:

You have to also remember that most of the cities people think about when they think about ridiculous rent are also liberal cities with tax and spend democrats in charge. Property taxes have a direct impact on rent. Having large multi-unit buildings really doesn’t mean they can give you super cheap rent if they are getting socked for 8000 a year in property taxes per unit.

Is that not exactly what I was saying?

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