Posted on 08/03/2015 9:17:46 PM PDT by 2ndDivisionVet
You are also probably at an age where housing was once cheap. Where I live, housing has pretty much doubled in price in the last ten years.
Section 8 Vouchers can be a couple thousand dollars a month, depending on family size. People take in multiple roommates (very typical in CA - check Craigslist). Also folks with unreported income (drug dealers, identity thieves, scam artists, etc. - use your imagination).
Even though interest rates are low, many people cannot get a mortgage due to FICO issues after losing a job, unexpected health-care expenses, etc. Banks are afraid to loan money because of all the onerous regulations and potential liabilities. Plus, banks still have a lot of REO properties on the books and they are afraid of having even more if the economy goes further South. Banks have even refused to foreclose on many properties for which they are receiving no mortgage payments. If they foreclose, they will have to admit how many REO's they actually have in their portfolios and the Fed can shut them down.
Mexicans will happily live 5 people to a single bedroom.
Ever higher property taxes translate correlate to higher rents.
“Anybody who rents is a fool.”
A lot of people in Michigan who had professional careers were fools for home ownership. Then, they lost their jobs and homes, forcing them to become renters against their will.
“If you rent, you never have to pay for repairs or maintenance or taxes!”
What do you think makes up the rent price?
The Fed’s ZIRP policy reduced mortgage rates, but this has been offset by housing price increases in the major metro areas. This in turn has set off matching rental unit increases. Housing bubble 2.0.
Landlords are “property owners” and pay taxes, too. Increases in property taxes are passed along as increases in rent. Renters don’t get an itemized property tax bill, but they’re still paying.
“The renters always vote for new bike trails, more park subsidies, higher gas taxes.”
Yeah, sure they do. In the SE Michigan counties that I live in and adjacent to, there are a lot of apartment communities where you can rent 2000+ sq. ft. units with high-end features and appliances for a little more than $2,200 or so per month. There are pools, security, clubhouses with fitness rooms, billiard tables, kitchens, libraries and saunas, etc. and a lot of those people pay that amount, plus utilities, because they can afford to. Do you have a problem with that?
“Anybody who rents is a fool.”
I don’t think you understand the concept of “risk”.
“First Yeti and Klownie the Kenyan”
Heh, heh!
;^)
You build equity when you own. Not so when you rent. It’s like leasing a car ...you are pissing your money down the drain. Look at it this way: do you think the people who own the house/apt you rent are doing it at a loss or to just break even? Heck no! You are paying a premium on top of what they are paying for taxes, maintenance, and mortgage (if they don’t own the property out-right) ...it’s their “profit” and they will make one even if they have to constantly raise the rent.
If you rent, you never have to pay for repairs or maintenance or taxes
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To say that renters don’t pay those things is misleading. It’s all factored into the rent you pay the land lord. If not, he wouldn’t be a land lord for very long.
Or some "developer" cons some local government types into a "development" for more tax revenues. See "Kelo v. New London". Bottom line 'homeowners' don't actually own squat, as it can be taken from them without recourse.
the infowarrior
I always try to explain to people who rent that is they who pay for the property taxes on their place ... but they refuse to believe it.
Renters never understand this ... they pay for everything, maintenance, HOA dues (if any), property taxes, yard maintenance, etc.
I’ve tried to explain that to many renters and they never get it.
It’s just like the consumer pays for all commercial rent, maintenance, taxes put on businesses + they also pay for credit card fees to the business. The end uses or consumer pays for everything!
I’ve tried to explain to my wife that the employee pays both halves of Social Security. I haven’t had any luck. Going on my third decade of trying ;-)
“If you rent, you never have to pay for repairs or maintenance or taxes!”
Do you also believe in the tooth fairy?
I'm not as handy as you are, but it is true that if you own a home and can't do basic repairs you will likely spend a small fortune over time paying people to do them for you.
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