missmuffet Posted October 14, 2015 Group: Royal Member Followers: 34 Topic Count: 1,990 Topics Per Day: 0.48 Content Count: 48,688 Content Per Day: 11.83 Reputation: 30,343 Days Won: 226 Joined: 01/11/2013 Status: Offline Author Share Posted October 14, 2015 This is how free market works. Market dictate what rental price it would be. This isn't greed. If it is greed to charge as much as what people would be willing to pay, then it is also greed to find to cheapest rental house you can afford (demand the highest wage for a job). Just the flip side of the coin from the owner's perspective.I believe that the free market concept is good. However there is no denying that for many landlords greed is a major factor when the demand exceeds the supply. That is exactly why I said sometime back that mortgage debt is using debt for the right reasons. If any person can save enough for a down payment and has a steady income to cover the monthly payments and necessities, then that is the only way to avoid becoming enslaved to a landlord. With the current level of interest rates, the monthly payments will often be equal to or less than rent. And there are cities in the USA where a house can be purchased at a very reasonable price. Please do a search and see for yourself. Everyone does not have to live in New York.Greed is definitely one of the factors.Buying a home is always the smarter way to go financially because the owner of the home is reaping the benefits. Link to comment Share on other sites More sharing options...
udx Posted October 15, 2015 Group: Senior Member Followers: 2 Topic Count: 18 Topics Per Day: 0.00 Content Count: 684 Content Per Day: 0.12 Reputation: 230 Days Won: 2 Joined: 04/15/2009 Status: Offline Share Posted October 15, 2015 (edited) This is how free market works. Market dictate what rental price it would be. This isn't greed. If it is greed to charge as much as what people would be willing to pay, then it is also greed to find to cheapest rental house you can afford (demand the highest wage for a job). Just the flip side of the coin from the owner's perspective.I believe that the free market concept is good. However there is no denying that for many landlords greed is a major factor when the demand exceeds the supply. That is exactly why I said sometime back that mortgage debt is using debt for the right reasons. If any person can save enough for a down payment and has a steady income to cover the monthly payments and necessities, then that is the only way to avoid becoming enslaved to a landlord. With the current level of interest rates, the monthly payments will often be equal to or less than rent. And there are cities in the USA where a house can be purchased at a very reasonable price. Please do a search and see for yourself. Everyone does not have to live in New York.Greed is definitely one of the factors.Buying a home is always the smarter way to go financially because the owner of the home is reaping the benefits.I don't think we should be so quick to judge people as greedy. You don't know people's circumstances. Greed means avid desire for gain or wealth. You don't know people's heart, it is unfair to classify most/all landlords as greedy, just because you think the rent is too high. A lot of people call out other people as greedy, but they are just really coveting person's wealth themselves. Edited October 15, 2015 by udx Link to comment Share on other sites More sharing options...
missmuffet Posted October 15, 2015 Group: Royal Member Followers: 34 Topic Count: 1,990 Topics Per Day: 0.48 Content Count: 48,688 Content Per Day: 11.83 Reputation: 30,343 Days Won: 226 Joined: 01/11/2013 Status: Offline Author Share Posted October 15, 2015 This is how free market works. Market dictate what rental price it would be. This isn't greed. If it is greed to charge as much as what people would be willing to pay, then it is also greed to find to cheapest rental house you can afford (demand the highest wage for a job). Just the flip side of the coin from the owner's perspective.I believe that the free market concept is good. However there is no denying that for many landlords greed is a major factor when the demand exceeds the supply. That is exactly why I said sometime back that mortgage debt is using debt for the right reasons. If any person can save enough for a down payment and has a steady income to cover the monthly payments and necessities, then that is the only way to avoid becoming enslaved to a landlord. With the current level of interest rates, the monthly payments will often be equal to or less than rent. And there are cities in the USA where a house can be purchased at a very reasonable price. Please do a search and see for yourself. Everyone does not have to live in New York.Greed is definitely one of the factors.Buying a home is always the smarter way to go financially because the owner of the home is reaping the benefits.I don't think we should be so quick to judge people as greedy. You don't know people's circumstances. Greed means avid desire for gain or wealth. You don't know people's heart, it is unfair to classify most/all landlords as greedy, just because you think the rent is too high. A lot of people call out other people as greedy, but they are just really coveting person's wealth themselves.I am not coveting their wealth.You should see what kind of rent they are trying to get for a literal run down shack.Then when they have not rented it after a couple of months they come down several hundred dollars. Link to comment Share on other sites More sharing options...
Ezra Posted October 15, 2015 Group: Royal Member Followers: 16 Topic Count: 134 Topics Per Day: 0.04 Content Count: 8,142 Content Per Day: 2.36 Reputation: 6,612 Days Won: 20 Joined: 11/02/2014 Status: Offline Share Posted October 15, 2015 A couple of things about the free market concept.1. Rents can only go so high before the market rejects them. Similar to house prices.2. A landlord who cannot be satisfied with a 10% return on investment is clearly greedy.3. To avoid being a helpless lifetime tenant, become an ethical landlord. Link to comment Share on other sites More sharing options...
udx Posted October 15, 2015 Group: Senior Member Followers: 2 Topic Count: 18 Topics Per Day: 0.00 Content Count: 684 Content Per Day: 0.12 Reputation: 230 Days Won: 2 Joined: 04/15/2009 Status: Offline Share Posted October 15, 2015 (edited) This is how free market works. Market dictate what rental price it would be. This isn't greed. If it is greed to charge as much as what people would be willing to pay, then it is also greed to find to cheapest rental house you can afford (demand the highest wage for a job). Just the flip side of the coin from the owner's perspective.I believe that the free market concept is good. However there is no denying that for many landlords greed is a major factor when the demand exceeds the supply. That is exactly why I said sometime back that mortgage debt is using debt for the right reasons. If any person can save enough for a down payment and has a steady income to cover the monthly payments and necessities, then that is the only way to avoid becoming enslaved to a landlord. With the current level of interest rates, the monthly payments will often be equal to or less than rent. And there are cities in the USA where a house can be purchased at a very reasonable price. Please do a search and see for yourself. Everyone does not have to live in New York.Greed is definitely one of the factors.Buying a home is always the smarter way to go financially because the owner of the home is reaping the benefits.I don't think we should be so quick to judge people as greedy. You don't know people's circumstances. Greed means avid desire for gain or wealth. You don't know people's heart, it is unfair to classify most/all landlords as greedy, just because you think the rent is too high. A lot of people call out other people as greedy, but they are just really coveting person's wealth themselves.I am not coveting their wealth.You should see what kind of rent they are trying to get for a literal run down shack.Then when they have not rented it after a couple of months they come down several hundred dollars.I understand. I am not saying you are, but many people really do look at landlords with envy. Have you ever been a landlord yourself? Do you understand the cost that factor into the rent?We should look into the situation in someone else's perspective and not always pity the poor over who seems to have more. High rental rates only reflects an underlying problem of not enough supply. If you only think it is the landlords fault, then you would be like those politicians that implement those short sighted rent control policies that exacerbate the problem without fixing it.For example in San Francisco, cost of houses/apartment themselves are really high, and lease agreements protects the tenant a lot more than the landlord... landlord have to factor these into the cost of the rent. There are also so call professional renters, that rent apartment but dont play rent. They play the legal game and stay at one place rent free until evicted by police, which could take months, causing tremendous cost the the landlord. A lot of the time the rent barely breaks even on the mortgage, and there is always the risk the real estate do not appreciate, then the landlord would lose money. All these are risks that factor into this rental investment. Edited October 15, 2015 by udx Link to comment Share on other sites More sharing options...
udx Posted October 15, 2015 Group: Senior Member Followers: 2 Topic Count: 18 Topics Per Day: 0.00 Content Count: 684 Content Per Day: 0.12 Reputation: 230 Days Won: 2 Joined: 04/15/2009 Status: Offline Share Posted October 15, 2015 (edited) A couple of things about the free market concept.1. Rents can only go so high before the market rejects them. Similar to house prices.2. A landlord who cannot be satisfied with a 10% return on investment is clearly greedy.3. To avoid being a helpless lifetime tenant, become an ethical landlord.Where did you get this magic number of 10% over any other number? Why do you get to decide the demarcation line between greedy and not greedy in isolation of any other factors? Edited October 15, 2015 by udx Link to comment Share on other sites More sharing options...
missmuffet Posted October 15, 2015 Group: Royal Member Followers: 34 Topic Count: 1,990 Topics Per Day: 0.48 Content Count: 48,688 Content Per Day: 11.83 Reputation: 30,343 Days Won: 226 Joined: 01/11/2013 Status: Offline Author Share Posted October 15, 2015 This is how free market works. Market dictate what rental price it would be. This isn't greed. If it is greed to charge as much as what people would be willing to pay, then it is also greed to find to cheapest rental house you can afford (demand the highest wage for a job). Just the flip side of the coin from the owner's perspective.I believe that the free market concept is good. However there is no denying that for many landlords greed is a major factor when the demand exceeds the supply. That is exactly why I said sometime back that mortgage debt is using debt for the right reasons. If any person can save enough for a down payment and has a steady income to cover the monthly payments and necessities, then that is the only way to avoid becoming enslaved to a landlord. With the current level of interest rates, the monthly payments will often be equal to or less than rent. And there are cities in the USA where a house can be purchased at a very reasonable price. Please do a search and see for yourself. Everyone does not have to live in New York.Greed is definitely one of the factors.Buying a home is always the smarter way to go financially because the owner of the home is reaping the benefits.I don't think we should be so quick to judge people as greedy. You don't know people's circumstances. Greed means avid desire for gain or wealth. You don't know people's heart, it is unfair to classify most/all landlords as greedy, just because you think the rent is too high. A lot of people call out other people as greedy, but they are just really coveting person's wealth themselves.I am not coveting their wealth.You should see what kind of rent they are trying to get for a literal run down shack.Then when they have not rented it after a couple of months they come down several hundred dollars.I understand. I am not saying you are, but many people really do look at landlords with envy. Have you ever been a landlord yourself? Do you understand the cost that factor into the rent?We should look into the situation in someone else's perspective and not always pity the poor over who seems to have more. High rental rates only reflects an underlying problem of not enough supply. If you only think it is the landlords fault, then you would be like those politicians that implement those short sighted rent control policies that exacerbate the problem without fixing it.For example in San Francisco, cost of houses/apartment themselves are really high, and lease agreements protects the tenant a lot more than the landlord... landlord have to factor these into the cost of the rent. There are also so call professional renters, that rent apartment but dont play rent. They play the legal game and stay at one place rent free until evicted by police, which could take months, causing tremendous cost the the landlord. A lot of the time the rent barely breaks even on the mortgage, and there is always the risk the real estate do not appreciate, then the landlord would lose money. All these are risks that factor into this rental investment.I don't look at anyone with envy.Why should I?A landlord is going to have a very different perspective than the person who is renting.I have spoken in depth to private property owners who are renting their home on their own and I have spoken to several individuals who are with rental property management companies.Some of the horror stories I have heard of what a renter can do to a property is horrifying.And some of these people who trash homes are physicians,lawyers etc.They thought that they could be trusted.Also they were saying someone will come along who has an incredible credit history and a ton of money and will rent a very,very expensive home and then use it for a meth lab ruining the home.It is risky now renting a home.Yes,there is costs involved that a landlord has to think about but I do know that there is also greed involved. Link to comment Share on other sites More sharing options...
Ezra Posted October 15, 2015 Group: Royal Member Followers: 16 Topic Count: 134 Topics Per Day: 0.04 Content Count: 8,142 Content Per Day: 2.36 Reputation: 6,612 Days Won: 20 Joined: 11/02/2014 Status: Offline Share Posted October 15, 2015 A couple of things about the free market concept.1. Rents can only go so high before the market rejects them. Similar to house prices.2. A landlord who cannot be satisfied with a 10% return on investment is clearly greedy.3. To avoid being a helpless lifetime tenant, become an ethical landlord.Where did you get this magic number of 10% over any other number? Why do you get to decide the demarcation line between greedy and not greedy in isolation of any other factors?Real Estate – Without using any debt, real estate return demands from investors mirror those of business ownership and stocks. The real rate of return for good, non-leveraged properties is roughly 7% after inflation. Since we have gone through decades of 3% inflation, over the past 20 years, that figure has stabilized at 10%. Riskier projects require higher rates of return. Plus, real estate investors are known for using mortgages, which are a form of leverage, to increase the return on their investment.http://beginnersinvest.about.com/od/beginnerscorner/a/What-Is-Considered-A-Good-Rate-Of-Return-On-Your-Investments.htm Link to comment Share on other sites More sharing options...
udx Posted October 15, 2015 Group: Senior Member Followers: 2 Topic Count: 18 Topics Per Day: 0.00 Content Count: 684 Content Per Day: 0.12 Reputation: 230 Days Won: 2 Joined: 04/15/2009 Status: Offline Share Posted October 15, 2015 A couple of things about the free market concept.1. Rents can only go so high before the market rejects them. Similar to house prices.2. A landlord who cannot be satisfied with a 10% return on investment is clearly greedy.3. To avoid being a helpless lifetime tenant, become an ethical landlord.Where did you get this magic number of 10% over any other number? Why do you get to decide the demarcation line between greedy and not greedy in isolation of any other factors?Real Estate – Without using any debt, real estate return demands from investors mirror those of business ownership and stocks. The real rate of return for good, non-leveraged properties is roughly 7% after inflation. Since we have gone through decades of 3% inflation, over the past 20 years, that figure has stabilized at 10%. Riskier projects require higher rates of return. Plus, real estate investors are known for using mortgages, which are a form of leverage, to increase the return on their investment.http://beginnersinvest.about.com/od/beginnerscorner/a/What-Is-Considered-A-Good-Rate-Of-Return-On-Your-Investments.htmThat does not answer the question. Why do you get to decide it is greed if it is over 10%?Like the article says.. and what I implied, risker project require higher return rates. Link to comment Share on other sites More sharing options...
missmuffet Posted October 15, 2015 Group: Royal Member Followers: 34 Topic Count: 1,990 Topics Per Day: 0.48 Content Count: 48,688 Content Per Day: 11.83 Reputation: 30,343 Days Won: 226 Joined: 01/11/2013 Status: Offline Author Share Posted October 15, 2015 A couple of things about the free market concept.1. Rents can only go so high before the market rejects them. Similar to house prices.2. A landlord who cannot be satisfied with a 10% return on investment is clearly greedy.3. To avoid being a helpless lifetime tenant, become an ethical landlord.Where did you get this magic number of 10% over any other number? Why do you get to decide the demarcation line between greedy and not greedy in isolation of any other factors?Real Estate – Without using any debt, real estate return demands from investors mirror those of business ownership and stocks. The real rate of return for good, non-leveraged properties is roughly 7% after inflation. Since we have gone through decades of 3% inflation, over the past 20 years, that figure has stabilized at 10%. Riskier projects require higher rates of return. Plus, real estate investors are known for using mortgages, which are a form of leverage, to increase the return on their investment.http://beginnersinvest.about.com/od/beginnerscorner/a/What-Is-Considered-A-Good-Rate-Of-Return-On-Your-Investments.htmThat does not answer the question. Why do you get to decide it is greed if it is over 10%?Like the article says.. and what I implied, risker project require higher return rates.Are you a property owner who rents out homes? Link to comment Share on other sites More sharing options...
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