Wealthy Landlord wants sympathy

[Nedroj]

https://www.castanet.net/news/Kelowna/4 ... investment

Im sorry but you own how many properties in the valley and are complaining about your costs going up?

Cry me a river.

Maybe sell one or two of your multi-million dollar properties to help yourself out and stop trying to gain sympathy from the public.

[seewood]

He doesn't like it, the option to sell is there as well. 4-5% return is possible with low risk and no RTB. Really no point in whining when he has options.

[typhoon44]

If we want a healthy rental market we need landlords who don't sell. Inflation at 8+% with rent controls is not a sustainable model. Many landlords are *bleep*. Renters need protection from them. We also need renters who don't welch on rents, cause damage, etc.

[Nedroj]

Im usually on the side of Landlords as they do get screwed over more so than renters these days. But this story just annoyed me as Im sure many many people would love and maybe kill to own ONE property in the valley let alone a couple dozen.

This guy has an easy solution to his problem but wont consider it out of ignorance.

In the same way, if a renter cannot afford to live here they should consider moving to another city or province where it is more affordable.

[CJ44]

https://www.castanet.net/news/Kelowna/4 ... investment

I'm sorry....but I am supposed to feel sorry for a real estate mogul who owns 25 rental units (mix of houses, apartments etc.) in one of the hottest and most expensive markets in the country?

Am I supposed to somehow understand this clearly very wealthy persons plight?

Is he cautioning all the other "regular" landlords who own 25 rental units or various whole apartment buildings?

Here's a tip, if you can't afford it then stop gobbling up real estate if you have your hands full of the millions of dollars worth you already have.

This is incredibly tone deaf considering many can't find a modest place to rent, let alone buy.

[Even Steven]

Already discussed here viewtopic.php?f=26&t=93948

*I've merged them, thanks!/ferri

[seewood]

In the same way, if a renter cannot afford to live here they should consider moving to another city or province where it is more affordable.

Should be the mantra in the media, however the sound bites from bleeding hearts saying we need more cheap housing in the most expensive jurisdictions cause its a right to live where you want seems to make the headlines instead of the common sense approach mentioned above.

I really doubt this fellow will get much love.

[countmeout]

Clearly, nobody here invests their own money...

If you have $1,000,000 and invest it over a 15-year period (without compounding interest, i.e. you pull the profits) it will generate $1,000,000 in 15 years. What this means is investments make ~7% year over year.

If you take the $million and buy two rental properties at $500,000 each, the following happens:

• The cost to maintain each property is ~1% of its value or $5,000 per year.

• The property taxes will be ~$3,500 a year for Kelowna, or 0.7% of the asset value

• A property typically appreciates at 3% a year, or $15,000

• The expected return at 7% is $35,000 per unit

So take the 7%, subtract the 3% increase in value and add 1.7% in costs, you get a rental return of ~5.7%
$500,000 x 5.7% = $28,500. Divide by 12 months of the year = $2,375 a month for the property.

Each year the value goes up, and so does the expected return. The rent the next year when the property is worth $515,000 will be $2,447 a month, a 3% increase.

Property values indeed do not increase at a linear rate. As we have seen values and costs skyrocket, so does the cost of the rent, however, our officials have decided the increase must be borne solely by the investors. It should be noted housing prices have levelled off from the recent boom, and likely won't be heading up anytime soon.

The warning to other landlords from this professional is, you're going to get better returns doing something else with your money. If enough landlords exit, the price will increase due to scarcity.

I know most of you think landlords are dripping in money, but consider the math I provided above and then ask yourself if you would run a charity or expect a return on your investment.

[common_sense_guy]

Clearly, nobody here invests their own money...

If you have $1,000,000 and invest it over a 15-year period (without compounding interest, i.e. you pull the profits) it will generate $1,000,000 in 15 years. What this means is investments make ~7% year over year.

If you take the $million and buy two rental properties at $500,000 each, the following happens:

• The cost to maintain each property is ~1% of its value or $5,000 per year.

• The property taxes will be ~$3,500 a year for Kelowna, or 0.7% of the asset value

• A property typically appreciates at 3% a year, or $15,000

• The expected return at 7% is $35,000 per unit

So take the 7%, subtract the 3% increase in value and add 1.7% in costs, you get a rental return of ~5.7%
$500,000 x 5.7% = $28,500. Divide by 12 months of the year = $2,375 a month for the property.

Each year the value goes up, and so does the expected return. The rent the next year when the property is worth $515,000 will be $2,447 a month, a 3% increase.

Property values indeed do not increase at a linear rate. As we have seen values and costs skyrocket, so does the cost of the rent, however, our officials have decided the increase must be borne solely by the investors. It should be noted housing prices have levelled off from the recent boom, and likely won't be heading up anytime soon.

The warning to other landlords from this professional is, you're going to get better returns doing something else with your money. If enough landlords exit, the price will increase due to scarcity.

I know most of you think landlords are dripping in money, but consider the math I provided above and then ask yourself if you would run a charity or expect a return on your investment.

Unfortunately most people can't handle the truth and there is far too much Envy by the people who didn't invest their money smart.. those are going to be the same people crying that they can't get rent at a reasonable rate. They don't see the big picture. They just see the big bad landlord.

[common_sense_guy]

https://www.castanet.net/news/Kelowna/4 ... investment

Im sorry but you own how many properties in the valley and are complaining about your costs going up?

Cry me a river.

Maybe sell one or two of your multi-million dollar properties to help yourself out and stop trying to gain sympathy from the public.

I'm sorry maybe you could point out the part where the landlord wants sympathy. Lol someone's a little envious. I would bet money you are a renter. Your Envy is ugly

[countmeout]

Unfortunately most people can't handle the truth and there is far too much Envy by the people who didn't invest their money smart.. those are going to be the same people crying that they can't get rent at a reasonable rate. They don't see the big picture. They just see the big bad landlord.

Pretty much sums it up. It's a miracle our species was capable of surviving thousands of years ago. Wonder how much whining our early ancestors did when there was no housing to rent, when one literally had to dodge wildlife and pile up sticks and rocks to survive... Today it's almost if being born = food and shelter guaranteed, just get whatever job, work a bit and you'll be provided with everything you require...

[TylerM4]

Got to love the hypocrisy of Castanet forums:

One day it's "Rent prices are crazy and there's no supply. Something needs to be done"
The next day it's "Screw wealthy landlords. They can sell if they don't like it".

How can people not understand that if we want more rental units we need to make investment in rental properties more appealing? Are people really that dense? Or as others have suggested - jealousy is trumping common sense?

[TylerM4]

Renter: Screw you wealthy landlord. I'm not even going to consider your concerns. Sell the property if you don't like it.
Wealthy Landlord: If that's the case, you're right. I'm better off investing in other ways. Good luck finding a place to rent/live.
Renter: HA! I really told him.

[nucksRnum1]

lets start a gofundme for mr babypants

[serpentongue]

Unbridled capitalism and ego leads men to ruin.

I see this is a consequence of wanting more than one's fair share...

Looking for an easy ride.

As it turns out, one may need to produce actual value and contribute to society in order to earn a living in 2023+