Rent Bank

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

Post by ckil »

BC Landlord wrote:
ckil wrote:Interest rates!
Interesting theory ... But wouldn't that benefit buyers, whether being landlords or first time buyers? In fact, it benefits the later much more. Do you realize how much harder is it to purchase a rental property? I have to put a 20% down payment (as opposed to 5% for first-timers). Bank wouldn't give you a loan otherwise. On a $500k, that's a $100,000 cold hard cash. Not too many people have that kind of disposable money.
As rates drop lenders will lend more. Borrowers live up to their names. Prices increase. Rental yield declines. Not rocket science.
BC Landlord
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Re: Rent Bank

Post by BC Landlord »

ckil wrote:As rates drop lenders will lend more. Borrowers live up to their names. Prices increase. Rental yield declines. Not rocket science.
It's not that simple. I would agree that interest rates are a factor to some extent, but not very much. Rental yields have been falling steadily for years, and for a variety of reasons, but I would say, most significantly because of governments' overregulating.

What is very surprising to me though, is when finally a government is doing something what actually makes sense (the Rent Bank) to help people affected by the housing crunch (of governments own creation, btw), the very same people pretending to advocate for them, are vigorously opposed to it. What gives?

When I waded into this thread, first I was skeptical and questioned the ability of a government to administer this properly. I don't trust them. But certainly I did not expect such an opposition from people who would directly benefit from it. I'm puzzled.
nepal
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Re: Rent Bank

Post by nepal »

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Rent Bank = Landlord subsidies.

Many apartment building are now owned by large investment conglomerates who’s goal is to maximize ROE There are also some established large local landlords who are doing extremely well. With near zero interest rates, their ROE is handsome, especially with disproportionately increasing, what-ever the market will pay, rents. There are enough people willing to pay high rents, that they drag up all rent expectations.
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For those can’t afford to be gouged in the Okanagan, going to smaller north-interior communities can sometimes be a solution, especially if their income isn’t contingent to being in the flashy city. I know a young family who recently left an Okanagan city, went to a north-interior city, bought a house they could never have afforded in the Okanagan, are amazed at how friendly small-town folks are, and have ample access to sports and outdoors. They are very happy with their move out of the fast-lane, and their financial stress has gone away.
Even Steven
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Re: Rent Bank

Post by Even Steven »

nepal wrote:I know a young family who recently left an Okanagan city, went to a north-interior city, bought a house they could never have afforded in the Okanagan, are amazed at how friendly small-town folks are, and have ample access to sports and outdoors. They are very happy with their move out of the fast-lane, and their financial stress has gone away.
Funny enough, I know lots of Vancouver people (myself included to some degree) that moved here, bought a place that they couldn't afford in Vancouver, like the small-town Kelowna folks, the outdoors, and enjoy less financial stress.

It's all relative.
BC Landlord
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Re: Rent Bank

Post by BC Landlord »

nepal wrote:.
Rent Bank = Landlord subsidies.

Many apartment building are now owned by large investment conglomerates who’s goal is to maximize ROE There are also some established large local landlords who are doing extremely well. With near zero interest rates, their ROE is handsome, especially with disproportionately increasing, what-ever the market will pay, rents. There are enough people willing to pay high rents, that they drag up all rent expectations.
What you've just described here is capitalism and and its fundamental concepts, i.e. making profit, and the supply and demand economy. Of course, we all (including landlords) want to make profit in whatever we do for a living, and want to maximize it. I'm just curious, what would be an alternative?

And btw, your first sentence has no connection with the rest of your comment. I mean, how could you possibly call this rent bank "landlord subsidies" if they (landlords) are not seeing a cent of it, .. plus doing "extremely well" ? It just doesn't make sense to me.
Last edited by BC Landlord on Jan 10th, 2021, 11:36 am, edited 1 time in total.
Vacancyrate
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Re: Rent Bank

Post by Vacancyrate »

Even Steven wrote:
nepal wrote:I know a young family who recently left an Okanagan city, went to a north-interior city, bought a house they could never have afforded in the Okanagan, are amazed at how friendly small-town folks are, and have ample access to sports and outdoors. They are very happy with their move out of the fast-lane, and their financial stress has gone away.
Funny enough, I know lots of Vancouver people (myself included to some degree) that moved here, bought a place that they couldn't afford in Vancouver, like the small-town Kelowna folks, the outdoors, and enjoy less financial stress.

It's all relative.
That's of hilarious example.

When you leave a city plagued by money laundering and one of the biggest real estate bubbles on the planet Earth, yeah, other places seem cheaper.

It's all relative, except one thing has nothing to do with the other!
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Rejigger
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Re: Rent Bank

Post by Rejigger »

Vacancyrate wrote:It's all relative, except one thing has nothing to do with the other!
Some have stated that real estate prices are/should be tied to wages. Minimum wage is the same throughout the province, therefore, comparing affordability in one BC city to another BC city would be relative, would it not?
BC Landlord
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Re: Rent Bank

Post by BC Landlord »

Rejigger wrote:Some have stated that real estate prices are/should be tied to wages. Minimum wage is the same throughout the province, therefore, comparing affordability in one BC city to another BC city would be relative, would it not?
I believe, he meant his wages. :biggrin:
TylerM4
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Re: Rent Bank

Post by TylerM4 »

Vacancyrate wrote:
When you leave a city plagued by money laundering and one of the biggest real estate bubbles on the planet Earth, yeah, other places seem cheaper.
People on Castanet forums have been declaring "real estate bubble" since I bought my place back in 2003. Pushing 18 years now - still waiting for the pop. Really glad I chose to buy and ignore such claims.
Vacancyrate
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Re: Rent Bank

Post by Vacancyrate »

TylerM4 wrote: People on Castanet forums have been declaring "real estate bubble" since I bought my place back in 2003. Pushing 18 years now - still waiting for the pop. Really glad I chose to buy and ignore such claims.
Socialism for homeowners has really worked out for you.
TylerM4
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Re: Rent Bank

Post by TylerM4 »

Vacancyrate wrote: Socialism for homeowners has really worked out for you.
If that's the case, it's also worked out for 95%+ of people who bought property in Canada since the 90's. There's a reason why buying property is considered an investment.
Vacancyrate
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Re: Rent Bank

Post by Vacancyrate »

TylerM4 wrote: If that's the case, it's also worked out for 95%+ of people who bought property in Canada since the 90's. There's a reason why buying property is considered an investment.
Interesting how you call a government-subsidized sector of the real estate an "investment".

Is an investment still and investment if there is no risk, and the taxpayer assumes all the risk for you? You just collect and never lose. Is that really an investment? If there is no risk why should you be rewarded?

An investment infers you can actually fail, and yet you have the entire power of the Federal Government printing money (450 billions and counting), handing out mortgage deferrals and doing everything in their power to keep your "investment gains" coming.
Even Steven
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Re: Rent Bank

Post by Even Steven »

Vacancyrate wrote: Interesting how you call a government-subsidized sector of the real estate an "investment".

Is an investment still and investment if there is no risk, and the taxpayer assumes all the risk for you? You just collect and never lose. Is that really an investment? If there is no risk why should you be rewarded?
Where do I collect money if one of my properties goes down in value? Is there a 1-800 number I call or what?
Vacancyrate
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Re: Rent Bank

Post by Vacancyrate »

Even Steven wrote: Where do I collect money if one of my properties goes down in value? Is there a 1-800 number I call or what?
Again, not debating in good faith. Cherry picking and playing word games.
Even Steven
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Re: Rent Bank

Post by Even Steven »

Vacancyrate wrote:Again, not debating in good faith. Cherry picking and playing word games.
Well, you're the one who makes giant generalizations and outlandish claims. I'm only asking follow up questions :)

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