Rent Bank
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- Grand Pooh-bah
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Re: Rent Bank
As rates drop lenders will lend more. Borrowers live up to their names. Prices increase. Rental yield declines. Not rocket science.BC Landlord wrote: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.ckil wrote:Interest rates!
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- Grand Pooh-bah
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Re: Rent Bank
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.ckil wrote:As rates drop lenders will lend more. Borrowers live up to their names. Prices increase. Rental yield declines. Not rocket science.
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.
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- Übergod
- Posts: 1131
- Joined: Jul 19th, 2009, 7:04 pm
Re: Rent Bank
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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.
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.
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- Guru
- Posts: 6439
- Joined: Mar 24th, 2015, 7:20 pm
Re: Rent Bank
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.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.
It's all relative.
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- Grand Pooh-bah
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Re: Rent Bank
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?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.
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.
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- Banned
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Re: Rent Bank
That's of hilarious example.Even Steven wrote: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.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.
It's all relative.
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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- Übergod
- Posts: 1379
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Re: Rent Bank
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?Vacancyrate wrote:It's all relative, except one thing has nothing to do with the other!
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- Grand Pooh-bah
- Posts: 2840
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Re: Rent Bank
I believe, he meant his wages.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?

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- Lord of the Board
- Posts: 3630
- Joined: Feb 27th, 2014, 3:22 pm
Re: Rent Bank
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 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.
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- Banned
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Re: Rent Bank
Socialism for homeowners has really worked out for you.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.
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- Lord of the Board
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Re: Rent Bank
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 wrote: Socialism for homeowners has really worked out for you.
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- Banned
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Re: Rent Bank
Interesting how you call a government-subsidized sector of the real estate an "investment".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.
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.
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- Guru
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Re: Rent Bank
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 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?
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- Banned
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Re: Rent Bank
Again, not debating in good faith. Cherry picking and playing word games.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?
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- Guru
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Re: Rent Bank
Well, you're the one who makes giant generalizations and outlandish claims. I'm only asking follow up questions :)Vacancyrate wrote:Again, not debating in good faith. Cherry picking and playing word games.