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RE ".....I pay so much rent that my landlady covers all her expenses in 6 weeks ...." Exactly what are your landladies expenses ? My experience is most ten

RE ".....I pay so much rent that my landlady covers all her expenses in 6 weeks ...." Exactly what are your landladies expenses ? My experience is most tenants are unaware of lots expenses and tax's and usually underestimate by at least 50%.

jeffbee 2y ago
The building was purchased in 1978 for $19k and the taxes are $2100, less than 2 weeks of rent.
- s1artibartfast 2y ago
  You have to consider the time value of money. 19K invested in stock market in 1978 would be over 1 million dollars today, maybe 2 million if you include the taxes paid since purchase.
  - bugglebeetle 2y ago
    So put the money in the stock market like everyone else with a 401K and stop constantly whining about getting someone else to pay off your mortgage. It’s not like what the world needs more of is real estate speculation.
    - s1artibartfast 2y ago
      Sounds fair if people stop complaining about homelessness from houses that aren't built. Roofs will be for homeowners.
      - bugglebeetle 2y ago
        Landlords are the ones who create and profit off homelessness, so you have it exactly backwards.
        s1artibartfast 2y ago
        I dont think that you can view housing as a fixed quantity of resources that are being allocated. Houses dont grow on trees. They take many thousands of man-hours to build, and hundreds of thousands in materials, even in the absence of land scarcity. Landlords front the cost of these things. without them, most of the housing stock would never be built, and there would be nowhere to stay for anyone who doesnt have good credit and a pile of money.
        bugglebeetle 2y ago
        Landlords by and large do not build houses. They buy up existing stock and coordinate with other landlords to constrain supply and raise rents. I dunno who you think is going to believe these fairy tales, but they’re transparently false to anyone with like an 8th grade reading level: https://www.propublica.org/article/doj-backs-tenants-price-fixing-case-big-landlords-real-estate-tech https://www.propublica.org/article/doj-backs-tenants-price-f...
        s1artibartfast 2y ago
        No need to be snarky. Im not that landlords are the builders with the hammers and nails. They are however, a major customer for houses. Fewer houses would be built with fewer paying customers. They also incentivize building through their role as a capitalized buyer of used houses. If it was much harder to resell a house for value, fewer owners would build them in the first place
- asdefghyk 2y ago
  Expenses in my area would include agents management fee , normally a % of rent - like 7 - 10 %. Local authority "rates" - typically a few $1000 . Insurance , typically a few $1000 at least. State government "land tax" depending on land valuation. Possible strata fees and levies. Bad debts Accountant fees for proper tax return for rental property - - typically $300 - $400 . New tenant assessment fees every time there is a new tenancy. Maintenance and repairs. Sinking fund for future repairs. In my area, its not unusual for a large proportion of the rent ( 50% or more ) to be consumed by all the fees and charges. Note the above does not include interest on borrowed funds. And was the quoted 1978 price typical as determined by comparison with other building for sales in 1978? As it is not know what other ( if any consideration ) was in the sale. Could have been a family transfer for example. The above does not include "risk"
  - jeffbee 2y ago
    You can throw out whatever arithmetic you want but we know from the aggregates that landlords are raking it in at unprecedented rates. Lessors' net income as a fraction of GDP stands at the highest level ever recorded. Net, that is after all the little things you whined about.
    - asdefghyk 2y ago
      Re "...landlords are raking it in at unprecedented rates. ..." The implication here is landlord is making enormous profit. That's good because if the profit really is enormous, the government and lots of other people will be able to either buy and rent homes. OR actually build homes to rent them out. They will them be able to reduce the asking rents to such a level to just cover their costs. If not then there are unexplained expenses or risks not mentioned.
asdefghyk 2y ago
Re "...I pay so much rent that my landlady covers all her expenses in 6 weeks ..." THe implication here is landlord is making enormous profit. That's good because if the profit really is enormous, the government and lots of other people will be able to either buy and rent homes. OR actually build homes to rent them out. They will them be able to reduce the asking rents to such a level to just cover their costs. If not then there are unexplained expenses or risks not mentioned.

jeffbee 2y ago

The building was purchased in 1978 for $19k and the taxes are $2100, less than 2 weeks of rent.

s1artibartfast 2y ago
You have to consider the time value of money. 19K invested in stock market in 1978 would be over 1 million dollars today, maybe 2 million if you include the taxes paid since purchase.
- bugglebeetle 2y ago
  So put the money in the stock market like everyone else with a 401K and stop constantly whining about getting someone else to pay off your mortgage. It’s not like what the world needs more of is real estate speculation.
  - s1artibartfast 2y ago
    Sounds fair if people stop complaining about homelessness from houses that aren't built. Roofs will be for homeowners.
    - bugglebeetle 2y ago
      Landlords are the ones who create and profit off homelessness, so you have it exactly backwards.
      - s1artibartfast 2y ago
        I dont think that you can view housing as a fixed quantity of resources that are being allocated. Houses dont grow on trees. They take many thousands of man-hours to build, and hundreds of thousands in materials, even in the absence of land scarcity. Landlords front the cost of these things. without them, most of the housing stock would never be built, and there would be nowhere to stay for anyone who doesnt have good credit and a pile of money.
        bugglebeetle 2y ago
        Landlords by and large do not build houses. They buy up existing stock and coordinate with other landlords to constrain supply and raise rents. I dunno who you think is going to believe these fairy tales, but they’re transparently false to anyone with like an 8th grade reading level: https://www.propublica.org/article/doj-backs-tenants-price-fixing-case-big-landlords-real-estate-tech https://www.propublica.org/article/doj-backs-tenants-price-f...
        s1artibartfast 2y ago
        No need to be snarky. Im not that landlords are the builders with the hammers and nails. They are however, a major customer for houses. Fewer houses would be built with fewer paying customers. They also incentivize building through their role as a capitalized buyer of used houses. If it was much harder to resell a house for value, fewer owners would build them in the first place
asdefghyk 2y ago
Expenses in my area would include agents management fee , normally a % of rent - like 7 - 10 %. Local authority "rates" - typically a few $1000 . Insurance , typically a few $1000 at least. State government "land tax" depending on land valuation. Possible strata fees and levies. Bad debts Accountant fees for proper tax return for rental property - - typically $300 - $400 . New tenant assessment fees every time there is a new tenancy. Maintenance and repairs. Sinking fund for future repairs. In my area, its not unusual for a large proportion of the rent ( 50% or more ) to be consumed by all the fees and charges. Note the above does not include interest on borrowed funds. And was the quoted 1978 price typical as determined by comparison with other building for sales in 1978? As it is not know what other ( if any consideration ) was in the sale. Could have been a family transfer for example. The above does not include "risk"
- jeffbee 2y ago
  You can throw out whatever arithmetic you want but we know from the aggregates that landlords are raking it in at unprecedented rates. Lessors' net income as a fraction of GDP stands at the highest level ever recorded. Net, that is after all the little things you whined about.
  - asdefghyk 2y ago
    Re "...landlords are raking it in at unprecedented rates. ..." The implication here is landlord is making enormous profit. That's good because if the profit really is enormous, the government and lots of other people will be able to either buy and rent homes. OR actually build homes to rent them out. They will them be able to reduce the asking rents to such a level to just cover their costs. If not then there are unexplained expenses or risks not mentioned.

asdefghyk 2y ago

Re "...I pay so much rent that my landlady covers all her expenses in 6 weeks ..." THe implication here is landlord is making enormous profit. That's good because if the profit really is enormous, the government and lots of other people will be able to either buy and rent homes. OR actually build homes to rent them out. They will them be able to reduce the asking rents to such a level to just cover their costs. If not then there are unexplained expenses or risks not mentioned.