5 ms·

Can you imagine having such unexpected jumps in housing costs and not even owning your home? That would be way way worse

itake 3y ago
Can you explain this more? When I rented, I paid a flat rate. When rent increased, it only went up 10% at max. Now that I am a homeowner with a 30y fixed mortage, I have many unexpected jumps (thousands in home repairs, increasing property taxes and insurance). Unexpected jumps are way bigger as a home owner than they ever were as a renter. Oh, and my house value has dropped $100k since I bought it.
- seanmcdirmid 3y ago
  Many people live in rental markets where rent increases are more than 10%. At least if you own there is some upside at the end of it. And you can estimate how much your upkeep will rise over the years.
  - ghaff 3y ago
    You can figure on property taxes and insurance gradually but steadily increasing. Maintenance is more variable but you tend to get a general sense for it over time (although you can have unexpected big bills). In general, I live in quite an old house (1800s) and figure it probably costs me a good $15K/year in taxes/insurance/maintenance/other upkeep not to go into maintenance debt. Can be a lot more or somewhat less.
- sofixa 3y ago
  > When I rented, I paid a flat rate. When rent increased, it only went up 10% at max. 10% is still a pretty serious increase. In France there's an index that is the max that rents can be increased with, and it's usually at max 6-7% (usually lower), and cannot be increased in areas that have significant housing shortage vis à vis demand.
  - itake 3y ago
    Doesn't rent control compound the problem? In areas with housing shortage, if no one can move, then the supply is further constrained. New people moving into the city (or young people moving out of their parent's homes) have to pay current market prices.
    - sofixa 3y ago
      > Doesn't rent control compound the problem Depends on which problem you're talking about. People getting priced out of the places they live by increasing rents? That one is solved by rent controls. The other big one, of people being unable to find where to live, is compounded to an extent, but coupled with other efforts (highly incentivised building of affordable and social housing, as well as various programs to help people buy the first time, and incentives to buy to rent (at fixed rates) it's not that bad. All the renter's protections do create obstacles to renting though, with e.g. landlords demanding proof of salaries at least x3 or a guarantor with such salaries.

itake 3y ago

Can you explain this more? When I rented, I paid a flat rate. When rent increased, it only went up 10% at max. Now that I am a homeowner with a 30y fixed mortage, I have many unexpected jumps (thousands in home repairs, increasing property taxes and insurance). Unexpected jumps are way bigger as a home owner than they ever were as a renter. Oh, and my house value has dropped $100k since I bought it.

seanmcdirmid 3y ago
Many people live in rental markets where rent increases are more than 10%. At least if you own there is some upside at the end of it. And you can estimate how much your upkeep will rise over the years.
- ghaff 3y ago
  You can figure on property taxes and insurance gradually but steadily increasing. Maintenance is more variable but you tend to get a general sense for it over time (although you can have unexpected big bills). In general, I live in quite an old house (1800s) and figure it probably costs me a good $15K/year in taxes/insurance/maintenance/other upkeep not to go into maintenance debt. Can be a lot more or somewhat less.
sofixa 3y ago
> When I rented, I paid a flat rate. When rent increased, it only went up 10% at max. 10% is still a pretty serious increase. In France there's an index that is the max that rents can be increased with, and it's usually at max 6-7% (usually lower), and cannot be increased in areas that have significant housing shortage vis à vis demand.
- itake 3y ago
  Doesn't rent control compound the problem? In areas with housing shortage, if no one can move, then the supply is further constrained. New people moving into the city (or young people moving out of their parent's homes) have to pay current market prices.
  - sofixa 3y ago
    > Doesn't rent control compound the problem Depends on which problem you're talking about. People getting priced out of the places they live by increasing rents? That one is solved by rent controls. The other big one, of people being unable to find where to live, is compounded to an extent, but coupled with other efforts (highly incentivised building of affordable and social housing, as well as various programs to help people buy the first time, and incentives to buy to rent (at fixed rates) it's not that bad. All the renter's protections do create obstacles to renting though, with e.g. landlords demanding proof of salaries at least x3 or a guarantor with such salaries.