Posted on 06/13/2021 12:53:40 PM PDT by Browns Ultra Fan
That is incorrect - 1) Many of my costs will go up in that scenario - property taxes, property insurance and maintenance are all subject to inflation 2) the value of my property is higher now and I have to consider selling it at the higher value vs maintaining rent or increasing my cash flow. If the value goes up and the cash flow does not (or goes down with my input costs higher), I’m going to sell it, which is going to take rental stock out of the equation and lower housing values. 3) The point of capitalism for both the buyer (renter) and seller (landlord) is not to stay at the same point, but to constantly find the best equilibrium for themselves. If someone can get a higher rent, why should the landlord not charge it? Similarly, if the renter can find a cheaper place to live, they can absolutely take advantage of that and move!
Property taxes and property insurance are not volatile and lag inflation.
I never said or suggested that you can’t attempt to charge what you believe the market will bear.
My comment was directed to those who try to take advantage of the free money created by reckless govt fiscal policy and use that money to distort a market, artificially driving up the cost of a vital and basic human need, shelter.
I've had property tax and insurance each go up more than 25% in a single year - including insurance last year on two of my properties.
“I’ve had property tax and insurance each go up more than 25% in a single year - including insurance last year on two of my properties.”
...and those increases happened at the end of our policy period, lagging inflation.
What’s your point? It’s coming one way or the other, even if its a 3,6, 12 or 36 month lag?
You’re a little slow, aren’t ya’?
Hah! That’s good for a heck of a laugh.
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