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> I don't make any money from my rental unit it just helps cover property tax insurance and my mortgage. It may not be fair, but it's the definition of a bad i

> I don't make any money from my rental unit it just helps cover property tax insurance and my mortgage. It may not be fair, but it's the definition of a bad investment. Unless you're housing someone at cost out of the kindness of your own heart, in which case, that's awesome.

nickthemagicman 5y ago
I don't think you know what the heck you're talking about. It's not a bad investment to cover the thousands of dollars that are required annually to maintain a house including property tax and insurance for the house simply existing. And now the government is telling me I can't collect the income they require me to give them.
- maxehmookau 5y ago
  Then I don't understand. You said you don't make any money from your investment. So it's a bad investment, regardless of COVID, right? What am I missing? The government is telling you that as a provider of homes to people, you cannot make them homeless during a global pandemic. This seems entirely reasonable and recalibrates the idea that properties are primarily homes, where people live, and not investments.
  - nickthemagicman 5y ago
    >>The government is telling you that as a provider of homes to people, you cannot make them homeless during a global pandemic The government didn't tell the mortgage companies that. And the govt didn't stop collecting taxes. Call me crazy but expecting the landlord to care while the govt and mortgage companies don't have to care... thats not fair.
kristjansson 5y ago
It would be a really bad business if their rent could only cover interest, taxes, insurance, and maintenance i.e. expected change in equity is 0. If it covers principal as well, then it's merely a risky business as expected change in equity is positive (since the mortgage amortizes), but downside (foreclosure) is huge and likely. In either case, it might still be a good _investment_ if the value of their equity appreciates - but as the other commenter notes, that's a very risky and inefficient way to get exposure to real estate prices!

nickthemagicman 5y ago

I don't think you know what the heck you're talking about. It's not a bad investment to cover the thousands of dollars that are required annually to maintain a house including property tax and insurance for the house simply existing. And now the government is telling me I can't collect the income they require me to give them.

maxehmookau 5y ago
Then I don't understand. You said you don't make any money from your investment. So it's a bad investment, regardless of COVID, right? What am I missing? The government is telling you that as a provider of homes to people, you cannot make them homeless during a global pandemic. This seems entirely reasonable and recalibrates the idea that properties are primarily homes, where people live, and not investments.
- nickthemagicman 5y ago
  >>The government is telling you that as a provider of homes to people, you cannot make them homeless during a global pandemic The government didn't tell the mortgage companies that. And the govt didn't stop collecting taxes. Call me crazy but expecting the landlord to care while the govt and mortgage companies don't have to care... thats not fair.

kristjansson 5y ago

It would be a really bad business if their rent could only cover interest, taxes, insurance, and maintenance i.e. expected change in equity is 0. If it covers principal as well, then it's merely a risky business as expected change in equity is positive (since the mortgage amortizes), but downside (foreclosure) is huge and likely. In either case, it might still be a good _investment_ if the value of their equity appreciates - but as the other commenter notes, that's a very risky and inefficient way to get exposure to real estate prices!