Rent Bank

Social, economic and environmental issues in our ever-changing world.
LANDM
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Re: Rent Bank

Post by LANDM »

Vacancyrate wrote:
Eliminate all landlords. Leeches on society.
That’s a good one. [icon_lol2.gif]
Eliminate all forms of housing for tenants is what you are saying. Then the magic unicorn dust will rain down from the heavens to provide fairy castle housing for all tenants. :up:

Let’s eliminate all farmers. They must be leeches on society for insisting on being paid to provide food. And everyone else who gets paid to provide something, whether it be goods or services. [icon_lol2.gif]
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BC Landlord
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Re: Rent Bank

Post by BC Landlord »

JLives wrote:It creates a cycle of never being able to catch up on that loan. The very idea of it is horrible. We can do better than this. This shouldn't even be an idea let alone one taken seriously.
Vacancyrate wrote: If real estate values continue to rise the "payday loan" rent bank turns into a permanent poverty cycle and the loans get longer and larger.
That's not how I read this proposal. My understanding is that an applicant would not be eligible to apply for a new loan unless the previous has been repaid in full, and that's over maximum of 24 months. It would also be limited by the amount (eg. one rent, two?) This alone prevents any "cycle" or a debt spiral, if you wish.
I understand your worries, but think about what would be an alternative:

A) a tenant gets evicted for nonpayment and landlord happily finds a new suitable tenant.
B) ban such (or all) evictions and have landlords go belly-up.

Is there another one? I'm all my ears ...
Last edited by BC Landlord on Dec 20th, 2020, 9:48 am, edited 1 time in total.
BC Landlord
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Re: Rent Bank

Post by BC Landlord »

Vacancyrate wrote:The real problem must be addressed.
Ok, here is my question, ... If someone gave you absolute power, how would you "address the real problem"? I hope, it's not the "eliminate landlords" thing :biggrin:
Vacancyrate
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Re: Rent Bank

Post by Vacancyrate »

BC Landlord wrote: Ok, here is my question, ... If someone gave you absolute power, how would you "address the real problem"? I hope, it's not the "eliminate landlords" thing :biggrin:
Mandate that the Bank of Canada price in housing price targets into their mandate.

That would be enough to cause a civil war, but that's what I would do.
BC Landlord
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Re: Rent Bank

Post by BC Landlord »

Vacancyrate wrote:Mandate that the Bank of Canada price in housing price targets into their mandate.
Sorry Vacancy, but I'm having a hard time understanding what you meant here ... What exactly would you want from the BoC?
Vacancyrate
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Re: Rent Bank

Post by Vacancyrate »

BC Landlord wrote:
Vacancyrate wrote:Mandate that the Bank of Canada price in housing price targets into their mandate.
Sorry Vacancy, but I'm having a hard time understanding what you meant here ... What exactly would you want from the BoC?
https://www.bnnbloomberg.ca/new-zealand ... -1.1526852

The Bank of Canada pretends that keeping interest rates pinned to the floor has nothing to do with house prices. Everyone knows that a complete lie. New Zeland got so fed up with climbing house prices in a deflationary economy that they are telling the central bank that they need to work in house price targets to their mandate

Right now house prices in Canada are climbing at 1% a month and we have the worst economic conditions since the great depression. The reason they are climbing is because the BoC keeps making money cheap.

The BoC targets "inflation" so I'd make them also target "house prices". If house prices rise more than 2% a year then they'd have to raise the interest rates and cool it down so renters dont have to take out loans to catch up to ballooning house prices due to cheap interest rates.

But, as I said, that would cause a civil war in Canada.

Also many elderly people used to live off GiCs when interest rates were normal. They could easily live off of 4-7% returns but now that interest rates are moreless zero those people are getting killed. Encouraging people to save money in the country wouldn't be such a bad thing but right now there isn't a savings account in Canada that doesn't lose money year after year due to inflation and low rates.
Boosted632
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Re: Rent Bank

Post by Boosted632 »

*removed*
Last edited by ferri on Dec 20th, 2020, 2:34 pm, edited 1 time in total.
Reason: Making it personal
I wouldn't Have to manage my anger if people could learn to manage their STUPIDITY
BC Landlord
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Re: Rent Bank

Post by BC Landlord »

Vacancyrate wrote:The BoC targets "inflation" so I'd make them also target "house prices". If house prices rise more than 2% a year then they'd have to raise the interest rates and cool it down so renters dont have to take out loans to catch up to ballooning house prices due to cheap interest rates.
Now I see what you mean. FYI, the BoC's interest rates are set and dependent on a broader economy, not just housing. There is a huge amount of household debt (not just mortgages), and a sputtering economy at play. They just can't hike the interest rate with a focus on one sector alone.

I'm not kidding, I have seen people (some of my tenants too), maxing out their credit cards (at 20% interest, and several of them), just to have the latest iPhone, a shiny new pickup, and a boat, all while living on a $20 wage. And where you have such a demand, the supply follows, at a price of course. How could the BoC possibly regulate such a behavior? This is in my mind where the real problem sits.
Vacancyrate
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Re: Rent Bank

Post by Vacancyrate »

BC Landlord wrote: I'm not kidding, I have seen people (some of my tenants too), maxing out their credit cards (at 20% interest, and several of them), just to have the latest iPhone, a shiny new pickup, and a boat, all while living on a $20 wage. And where you have such a demand, the supply follows, at a price of course. How could the BoC possibly regulate such a behavior? This is in my mind where the real problem sits.
The BoC encourages such behavior so it stands to reason they also could discourage it.
Vacancyrate
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Re: Rent Bank

Post by Vacancyrate »

BC Landlord wrote: Now I see what you mean. FYI, the BoC's interest rates are set and dependent on a broader economy, not just housing. There is a huge amount of household debt (not just mortgages), and a sputtering economy at play. They just can't hike the interest rate with a focus on one sector alone.
Keep rates pinned to the floor for business and job creation loans and government debt. No need to sink the system.

Specifically target residential mortgages.

This would be calling the BoC's bluff because 95% of the "new money" that has been loaned out by the banks in the last year has gone directly to residential mortgage loans. Only 5% went to business loans (haha) You can get a dog a mortgage and any new immigrant to Canada can get a mortgage without a credit history but if you want a business loan right now prepare to give up your firstborn child.Think of how much money an 11% increase of the entire residential housing supply combined is. This is how the can print 400 billion and wont even get 2% growth with it. It just went right into piles of bricks.

65% of the GDP is consumer spending. They are trying to stimulate the economy by getting people to buy iPhones and TV's with cheap debt and they actually desperately need people to do that. However all that cheap money is being poured into assets. Real estate up 11% in a pandemic. Stocks up 600%. Bitcoin all times high. Canadian Government printed 400 billion out of thin air and saved the system from crashing and people are scratching their heads as to how real estate and stocks went up. A few billionaires tripled their net worth in 6 months thanks to your taxdollars.

I know it's impossible and it would throw a wrench in the whole debt charade. You asked what I would do if I had any say and the choice right now is to keep kicking the can down the road with more and more debt or face the music.

Right now the BoC is in full clown mode.

Which brings us back to "payday loans for renters". Honk Honk
BC Landlord
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Re: Rent Bank

Post by BC Landlord »

Vacancyrate wrote:The BoC encourages such behavior so it stands to reason they also could discourage it.
You realize, the BoC does not deal with consumer credits? No one encourages anyone to take on a 20% credit card debt, but people still do it habitually. How do you "discourage" that? The vast majority of them are the same people who cannot afford any mortgage, but they do drive consumer prices up, including rents. Then, they blame landlords for "gouging" them. How is that right?
Last edited by BC Landlord on Dec 20th, 2020, 5:18 pm, edited 1 time in total.
BC Landlord
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Re: Rent Bank

Post by BC Landlord »

Vacancyrate wrote:Which brings us back to "payday loans for renters". Honk Honk
And this brings us back to the original question, ... What do you propose to do with people who in unforeseen circumstances, slip out on a rent of two? Have them evicted, or help them out to get over it, i.e. the Rent Bank?
BC Landlord
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Re: Rent Bank

Post by BC Landlord »

https://www.cbc.ca/news/canada/toronto/ ... 9fvLdd6TaQ

This clearly illustrates why Rent Banks are needed. These are challenging times, but if you make it impossible for landlords to collect rent, or evict delinquent tenants, we will no longer have private rental properties, and that would not end well. Anywhere where state takes over housing, it inevitably turns it into slums.
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oldtrucker
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Re: Rent Bank

Post by oldtrucker »

Vacancyrate wrote:The BoC encourages such behavior so it stands to reason they also could discourage it.
We need a interest rate hike to at least 5%....that'll learn 'em.
Last mortgage I had was 7.25%.... waayyy before the hyperinflated bubble we have now
Some may view my politically incorrect opinions as harsh and may be offended by them. Some think political correctness will be our undoing.
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oldtrucker
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Re: Rent Bank

Post by oldtrucker »

BC Landlord wrote:but if you make it impossible for landlords to collect rent,
You mean have the tenants pay their hyperinflated mortgage(?)
Some may view my politically incorrect opinions as harsh and may be offended by them. Some think political correctness will be our undoing.

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