Rent Going Up? One Company’s Algorithm Could Be Why.

You are confusing anti-free market with something else (probably speech)

 

Don’t think I’m confusing anything

 

You just can’t seem to help yourself

 

Housing is absolutely inelastic in value, or rather, it goes up and up and up. There's only one time ever when real estate has gone down in value. And it all recovered within a few years.

I'll believe it's fixed when I see it. I'm aware of megacorps buying up neighborhoods as well. At the end of the day, not everyone is going to use that software or even just price things as they see fit. Like @Ziggy said, as landlords you can do what you want. If I'm making 30% in rent a month and it's a great tenant, I'm not going to price them out of the house with a massive increase, but with the type of tenants I have, they expect rent to go up some. Some money > no money.

 

That's more than fair. But what is price even. Why are diamonds expensive? If you don't want to include luxury items. Why is medicine so expensive?

 

I have never raised rent on a tenant. I'd rather just keep them in place and not deal. I also don't get why landlords hate fixing stuff. It's deductible.

 

Do you not have a mortgage on the houses? There's a point where the costs are going to outweigh the rental income and you have to raise it.

Edit- you don't have to answer that (obviously)

But I can tell you that if you aren't using your properties to leverage to make even more money, then you're sitting on dead equity. Meaning the houses have equity that you aren't tapping so that value is just sitting there, earning 0% for you. Same with your primary residence.

I don't know a single self-made wealthy person who doesn't make money by leveraging what they own. They want to die in debt. (and with a 1031 tax free exchange, they can kick the tax can down the road until they die, and their heirs don't have to pay a dime).

 

I raise rent when they turnover. I haven't had anyone stay longer than 3yrs or so.

If I raise it and lose the tenant - I eat a month+ on vacancy, realtor fee, cleaning/upkeep, etc... cost to acquire a new customer + mental toll = not a big enough incentive for me to do anything.

 

Agree with that to an extent. There's a point where moving them out makes financial sense. My personal business model is to completely rehab my houses, then sell within 5 years before **** starts to break.

 

I like it! I too rehab them (but not TOO much). And just sold my first one summer 2021 when the market was hot - and like you mention, it'll be due for new roof, etc... sooner rather than later.

I only have one currently now in College Station but would like to get another if the market flops. Or make my current home the rental.

I don't see it as something I want to scale very big. I just like have 1 or 2 in the arsenal.

I try to speculate on location. So I wound up with an EADO home on the one I sold. It worked out great. Do you buy in specific areas? Or look at anything specific when you buy?

 

Do you have a Mad Max fetish or something?

You just could not help throwing in societal breakdown.

I agree with all of this but we are not anywhere close to societal breakdown the one thing about capitalism is that prices adjust when more people can't afford the commodity.

Also in a capitalistic society we tend to overcompensate and demand come down, It's starting to happen to the housing market.

Just look at gas prices its below 3 dollars now.

 

I kind of worry about what'll happen to people of retirement age in the near future. Only boomers and 4% of millennials (lol) have money to retire and there are no pensions. Social security is ponzi. GOOD LUCK

 

So what happens to the people who can't afford to move or don't have the skills to get a different job?

Nothing about the solution is simple, and just because you price your properties reasonable does not mean everybody else does.

This is a very naive argument.

The fact that you think can just pick up and move, or it's as simple as getting a new job reeks of privilege and entitlement, even if you have created all this wealth on your own.

If the solution was so simple, housing and rent prices would not be sky-high because people would be getting jobs and houses in these affordable places and you and others would have to lower prices to be competitive.

I don't think you are a bad dude or even entitled, just not very knowledgeable of what most people go through.

I mean, do you actually think it's as simple as just get a raise?

Really?

For example, I am a teacher, so do I just get another job?

So if moved, will my salary raise be enough to offset the rise in housing prices that would accompany the move?

Who do I ask for a raise?

If teachers adopt your attitude, who is going to teach?

Also economics for a civilized society should be much more than supply and demand.

 

This.

It has happened to Houston several times.

 

I wonder as well but we are far from societal breakdown, if people have not started rioting in SF and LA yet that shows you the tipping point is not in site.

Yes there will eventually be a tipping point, It's nowhere in sight yet.

Yes, there is a market correction for this, just look at how gas prices go up and down.

The housing market is already cooling down do to this.

This should be at the top of Democrat's list of things to look into, because it's coming to a head.

 

WOW!

I can't really believe you went there, not a good look my guy.

Really, WTF does driving a 100k car have to do with anything, I hope you are just playing this up.