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he is making a lot less then we are …and the only reason we can make more is because of the fact he has his money invested in this building laying all mine free for investing
the cap rate is not good on this building and with the new laws his hands are tied as far as getting rents up
If you are paying rent, you are paying for your housing. Maybe you chose a bad choice of words in your initial comment. But that is the bottom line.
Homework assignment: Stop paying your landlord rent money for a few months and see what happens.
If you are paying rent, you are paying for your housing. Maybe you chose a bad choice of words in your initial comment. But that is the bottom line.
Homework assignment: Stop paying your landlord rent money for a few months and see what happens.
paying rent has nothing to do with me having my money tied up in a place and not accessible to me for more lucrative investments other then using it as collateral for a costly loan .
it’s his money that owns this building and is tied up in it , not mine .
don’t confuse the fact he gets a monthly cash flow from me with the fact that it isn’t my money that owns this apartment…
paying rent has nothing to do with me having my money tied up in a place and not accessible to me for more lucrative investments other then using it as collateral for a costly loan .
it’s his money that owns this building and is tied up in it , not mine .
don’t confuse the fact he gets a monthly cash flow from me with the fact that it isn’t my money that owns this apartment…
Since you are an investor yourself, you would understand that people don't invest (financially) for free. Investment is for profit/worth. Your landlord is making a profit off of your rent. Period.
He WANTS to make a profit. It's common for buildings to decline in value, or for the owner to overpay or over-mortgage and have a loan worth more than the building.
It's the same principle as we're currently seeing with office buildings. A large percentage of the entire country's (and world's) office inventory is underwater right now. Apartment demand doesn't fluctuate as much, but their loans often go underwater too.
He WANTS to make a profit. It's common for buildings to decline in value, or for the owner to overpay or over-mortgage and have a loan worth more than the building.
It's the same principle as we're currently seeing with office buildings. A large percentage of the entire country's (and world's) office inventory is underwater right now. Apartment demand doesn't fluctuate as much, but their loans often go underwater too.
I don't know the landlord(s), so I can't speak for what their intentions are. But historically, people invest to hopefully make a profit. The point is if there is rent being paid, the intention is to make a profit. Or at least break even so the renter is paying for the square footage being used. I won't rent my property to someone for less than my mortgage and potential repairs, at bare minimum. Otherwise, there would be no point.
housing is just another expense like all my other expenses .
it’s no different then me paying for food .
i don’t have my money tied up in a farm , the farmer does .
i don’t have my money tied up in a restaurant, the restaurant owner does .
i just pay for the use of that item . i have no money tied up lump sum in anything i use or spend on except my car
my money is invested elsewhere …. that is the point.
had i owned my house all these years i would have a house worth about 900k …. we would have saved some money on rent too. but not a lot since we are talking running a whole house , with renovations, repairs and all the expenses of a house vs a two bedroom 2 bath apartment in a high rise
on the other hand the business we bought was eventually sold for many multiple 7 figures as the apartment leases were bought out .
the fact it wasn’t my money tied up in another place allowed that to happen .
so in effect the owners money being tied up in providing our housing in exchange for a monthly payment is what allowed us to make millions in the business with our own money
no different then the farmer who invested in his farm or the restaurant owner who put every penny in his restaurant.
Last edited by mathjak107; 04-09-2024 at 04:29 PM..
we much rather use our landlords money to provide our housing while our own money is invested in far more lucrative things as opposed to tied up in a house
You live in a rent controlled market, correct? I agree that in many situations it makes a lot of sense to rent, and yours is one of the most compelling reasons.
My tenants in my houses pay a lower or similar rent to what a mortgage payment for the same property would be without having to provide a down payment or deal with repairs. I win because I bought the properties following the 2008 crash for favorable prices. They win because they can invest and earn on money they would need as downpayments.
I suppose it is all about about one's values and priorities and needs, and how one chooses to see things.
When I was owning ( 1968-2023 ) I was paying for my housing and making an investment. Having made a huge cumulative profit, I no longer have any need for additional "investment" ...
Now I am renting and simply paying someone ( corporation ) who ( that ) is providing a service ( housing ). They can make all the profit they like, but I am still paying for something that I value, at a price that I think is reasonable, for what I am getting. For me it is also the price of convenience.
I don't know the landlord(s), so I can't speak for what their intentions are. But historically, people invest to hopefully make a profit. The point is if there is rent being paid, the intention is to make a profit. Or at least break even so the renter is paying for the square footage being used. I won't rent my property to someone for less than my mortgage and potential repairs, at bare minimum. Otherwise, there would be no point.
Do you have negative gearing in the US? The ability to deduct your losses (including interest but not repayment of capital) on an investment property from your other income? That has been the whole point here for a long time and again it is very controversial. When it was briefly stopped, landlords started selling in large numbers, decreasing the supply of rental accomodation.
Today the news is that our government are looking at Canada’s policies on controlling foreign investment for inspiration. I think both countries have major issues with housing affordability because it is linked to very large numbers of legal immigrants, who are necessary to staff the health system in particular and to provide a major income source for the tertiary sector.
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