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This sounds a lot like land ownership.
by rbranson 6y ago
This sounds a lot like land ownership.
- DamnYuppie 6y agoWell in most of US you can pay off the land but you still have property taxes which can go up. Also the tax basis can be adjusted based on the market value of similar properties in your area.
- rbranson 6y agoNot in California.
- BurningFrog 6y agoIt turns renters into a kind of owners, yes.
- foolinaround 6y agoa kind, that enjoys the upsides, but can run away when there are downsides without any consequences?
- sudosysgen 6y agoWhich downsides can they run away from? They pay for maintenance, property taxes, and so on. And still pay a premium over that.
- compiler-guy 6y agoThey don't pay for these things if their rent is fixed.
- sudosysgen 6y agoThe vast majority of rent controlled cities have rent control boards where landlords can request and increase in rent in case of exceptional circumstances. In those cases, the landlord must show that the rent is not enough to cover maintenance, and the increase is granted. In general though, maintenance on average only costs ~150-300$ a month, so it's not necessary.
- La1n 6y ago>enjoys the upsides, but can run away when there are downsides without any consequences? Isn't that why landlords argue they should make profit, because they carry the risk?
- rbranson 6y agoI don’t know why I have to explain this, but I’m not aware of any situation in which a renter builds equity in the underlying asset either. Under rent control the situation goes from being extremely advantageous to the landlord to just being regular advantageous.