5 ms·
Not denying we have a broken system, but how could we outlaw real estate investment without removing the option of renting an apartment or house?
by rfrey 8y ago
Not denying we have a broken system, but how could we outlaw real estate investment without removing the option of renting an apartment or house?
- FeepingCreature 8y agoDidn't you hear? A house is "for a person to own and live in." Who cares about renters, apparently?
- geezerjay 8y agoSo those who don't have the cash up front or credit to buy a house are SOL, so as migrant workers who made the mistake of looking for a job somewhere in the jurisdiction.
- ricardobeat 8y agoI don’t think the intention is to reduce rentals, just to stop prices from going up. That said, you need very little cash at hand to buy a house in the Netherlands (in fact, a few years back you needed < €0), there’s no upfront payment. Credit is cheap (~2%) and abundant.
- geezerjay 8y ago> I don’t think the intention is to reduce rentals, just to stop prices from going up. The legislation described in TFA is quite literally designed to cut off the introduction of newly built houses in the rental market, including investments in real estate focused on that market segment.
- mcv 8y agoTFA disagrees with you: "Amsterdam’s proposed laws wouldn’t stop new rental housing from being built—according to the city’s proposal, that housing would simply have to be proposed and approved as rental property in the first place."
- lukevdp 8y agoAnd what is the approval process? Where I live, to cut down a tree, you can get it approved by council. The problem is, they do not approve any applications.
- geezerjay 8y ago> TFA disagrees with you: Quite the opposite in fact. TFA is quite clear on how their aim is to stop new housing units to be used for rentals, and they even force an arbitrary process to approve exceptions to the ban by enabling local polititians to approve specific projects they may see as acceptable. Nevertheless, the goal is quite clear: raise barriers to the introduction of rental properties.
- ricardobeat 8y agoThe rule is for koopwoningen only - houses built for sale (owner-occupied). The market here is quite regulated and new builds have to provide a mix of owned, rented and social housing units. The limitation will just prevent the owned units from shifting to rentals as an investment.
- mcv 8y agoNo, you are misreading or misrepresenting what the article says. The measure is meant to stop houses that are meant for people to purchase and live in to be bought by investors to rent them out. The reason for that is that those investors are reducing the supply houses available for purchase, and driving the prices up. Rental homes are still available for rent. Nothing changes there. The city invests a lot in affordable rental houses. That's not going to change. They just want to stop investors and speculators from snatching up the available houses.
- deleted 8y ago[deleted]
- thijsb 8y agoNot entirely true. You need to be able to cover expenses like taxes and legal fees by yourself, which accounts for 8 and a bit percent.
- AllegedAlec 8y agoNot really. With a slightly above modal salary, I can get a mortgage of roughly 180K, if I didn't have a student debt. A house, on average, will cost somewhere in the region of 300K this year. Not that rent is more affordable though. Most not rent-controlled places require you to have a yearly income of around 50 times the monthly rent, which ensures it's nigh impossible to get any sort of decent place on a single income. Of course, all of this is near the larger cities. In the countryside, you could probably get the same sort of place for two-thirds the money. However, you'd probably be travelling at least 1.5 hours one-way to your work.
- mcv 8y agoNo, they just rent a house that was actually meant for rental from a professional landlord, rather than an overpriced rental from an absentee landlord.
- deleted 8y ago[deleted]
- lukevdp 8y agoWhat is the difference between a professional landlord and an absentee landlord? Aren’t all landlords absentee and aren’t all landlords going to charge market rent?
- mcv 8y agoSomeone who rents out a house on one side of the country and then goes to live on the other side of the country, is not available to his tenants when they need him. Also, if this is the only house he owns, he's likely not an experienced landlord and may have no idea how to provide the services that his tenants need and deserve.
- nicoburns 8y agoLimit the number of properties a single entity can own.
- geezerjay 8y ago> Limit the number of properties a single entity can own. What problem would that solve? Certainly not any of the problems covered by the article.
- mcv 8y agoThat might be a problem for me. Despite owning only one home, I technically own 4 properties.
- consp 8y agoJust set up more holding entities and let them hold a limited amount of houses. The only thing profiting from this will be administrators.
- maxsilver 8y agoYou could heavily regulate rentals and/or make rentals a service the government provides. That's how we fixed this problem for Water, Electricity, and Natural Gas.
- Vinnl 8y agoThe article says: > Amsterdam’s proposed laws wouldn’t stop new rental housing from being built—according to the city’s proposal, that housing would simply have to be proposed and approved as rental property in the first place.
- ahoy 8y agoWe managed to solve the issue of "everyone needs water & electricity" by making them government services (or in some locales, private services required to service everyone). It's not a perfect system but it's certainly better than what we're doing with housing.
- geezerjay 8y ago> We managed to solve the issue of "everyone needs water & electricity" by making them government services (or in some locales, private services required to service everyone). Private services are still not public services, and paying private companies to follkw public service contracts has nothing in common in providing a publix service through a public institution.
- okmokmz 8y agoa lot of international investors don't even rent them out, they just purchase them and leave them vacant while they continue to appreciate