Rents going down ...

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BC Landlord
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Rents going down ...

Post by BC Landlord »

For the first time this year, the average prices of one- and two-bedroom units on Castanet’s classifieds page dropped from the month before.

https://www.castanet.net/news/Kelowna/3 ... uly#341855

This begs a question ... Why do we need rent controls, when obviously the market is doing what is supposed to do? Why meddling?
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spooker
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Re: Rents going down ...

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Because people have shown that they will abuse anything they can get away with maybe?

If there had been controls on housing prices maybe things wouldn't have gotten to this point when people can't expect to ever catch up and own their own piece of land ... unfortunately the "market" likes to hike things it can (housing costs) while suppressing others (wages) all in favour of those in control ... yay yay capitalism!
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Re: Rents going down ...

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spooker wrote: Aug 4th, 2021, 12:06 pm Because people have shown that they will abuse anything they can get away with maybe?
... or maybe not, as evident!
If there had been controls on housing prices maybe things wouldn't have gotten to this point when people can't expect to ever catch up and own their own piece of land ... unfortunately the "market" likes to hike things it can (housing costs) while suppressing others (wages) all in favour of those in control ... yay yay capitalism!
Blaming capitalism for everything under the sun is Marxists trait. We all know it's a failed concept.
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Re: Rents going down ...

Post by GordonH »

Still a huge crunch of that minimum wage paycheque.

At a maximum of 35% of take home pay (based on minimum wage) single bedroom rental (at least a bachelor suit) needs to be under $775 per/month.

Apparently not happening in any rentals on Castanet.
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Re: Rents going down ...

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BC Landlord wrote: Aug 4th, 2021, 12:20 pm Blaming capitalism for everything under the sun is Marxists trait. We all know it's a failed concept.
*like*

Price controls of any sort REDUCE the supply and lead to shortages, which inevitably leads to higher prices. One could argue that rent controls are worse than gasoline controls because a gas station can be force to charge the same price when the next fuel truck comes in, but with rent controls, the homeowner can raise his rent up to market conditions when the renter moves out (typically every 2 years), which will be HIGHER than it would be otherwise if there was no rent control in place to begin with.
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Re: Rents going down ...

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spooker wrote: Aug 4th, 2021, 12:06 pm Because people have shown that they will abuse anything they can get away with maybe?

If there had been controls on housing prices maybe things wouldn't have gotten to this point when people can't expect to ever catch up and own their own piece of land ... unfortunately the "market" likes to hike things it can (housing costs) while suppressing others (wages) all in favour of those in control ... yay yay capitalism!
Cant afford to live here then dont pretty simple really thats why i dont live in Malibu. Im not sure how exactly you think there should be controlled house prices perhaps north korea is more to your liking than Canada. Owning your own piece of land is not a right its more of a reward for working hard and actually saving some money.
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spooker
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Re: Rents going down ...

Post by spooker »

One thing about pricing is that it can "inclusive" where it is accessible to a larger pool of people (decreasing) ... or it can be "exclusionary" when it denies a greater number of people access (rising) ... obviously the rules are in place to put more pressure against the latter ...
Glacier wrote: Aug 4th, 2021, 12:35 pm Price controls of any sort REDUCE the supply and lead to shortages, which inevitably leads to higher prices. One could argue that rent controls are worse than gasoline controls because a gas station can be force to charge the same price when the next fuel truck comes in, but with rent controls, the homeowner can raise his rent up to market conditions when the renter moves out (typically every 2 years), which will be HIGHER than it would be otherwise if there was no rent control in place to begin with.
Though applying that argument to a necessity of life is a bit harsh ... what you are proposing is more in line with libertarian/right-wing thought ... and I think we know where we both stand with regards to that ...
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Re: Rents going down ...

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BC Landlord wrote: Aug 4th, 2021, 12:20 pm
spooker wrote: Aug 4th, 2021, 12:06 pm Because people have shown that they will abuse anything they can get away with maybe?
... or maybe not, as evident!
If there had been controls on housing prices maybe things wouldn't have gotten to this point when people can't expect to ever catch up and own their own piece of land ... unfortunately the "market" likes to hike things it can (housing costs) while suppressing others (wages) all in favour of those in control ... yay yay capitalism!
Blaming capitalism for everything under the sun is Marxists trait. We all know it's a failed concept.
Have you seen China lately? Is that what failed state looks like? :200:
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Re: Rents going down ...

Post by foenix »

Glacier wrote: Aug 4th, 2021, 12:35 pm
BC Landlord wrote: Aug 4th, 2021, 12:20 pm Blaming capitalism for everything under the sun is Marxists trait. We all know it's a failed concept.
*like*

Price controls of any sort REDUCE the supply and lead to shortages, which inevitably leads to higher prices. One could argue that rent controls are worse than gasoline controls because a gas station can be force to charge the same price when the next fuel truck comes in, but with rent controls, the homeowner can raise his rent up to market conditions when the renter moves out (typically every 2 years), which will be HIGHER than it would be otherwise if there was no rent control in place to begin with.
Not if there were caps on the increases and I'm thinking with price controls already implemented, that's exactly what will happen.....just saying.
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Re: Rents going down ...

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Glacier wrote: Aug 4th, 2021, 12:35 pm ... but with rent controls, the homeowner can raise his rent up to market conditions when the renter moves out (typically every 2 years), which will be HIGHER than it would be otherwise if there was no rent control in place to begin with.
You've hit the nail on the head. That is exactly what rent controls do. Every serious landlord would do just that. In fact, one of my units changed tenants a couple of weeks ago. The rent went up 30%. And make no mistake, I stay competitive, because every landlord does it. Here is the rationale ... On average, my tenants stay anywhere from 1 to 2 years, rarely 3. The cost of all overheads (i.e. taxes, insurance, maintenance .. etc) usually increases by 10% annually. So, let's see, ... 2 years of 10% compounded is 21%. Then, I add another year, just to be on the safe side. That amounts to 33%, but I round it off to 30. Thank for all this to rent controls. Does it have to be like this? No, it doesn't. But some governments think they know better.
Last edited by BC Landlord on Aug 4th, 2021, 1:20 pm, edited 1 time in total.
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Re: Rents going down ...

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BC Landlord wrote: Aug 4th, 2021, 12:20 pmBlaming capitalism for everything under the sun is Marxists trait. We all know it's a failed concept.
The housing market in its current state isn't a product of capitalism, it's a product of greed. "Capitalism" in itself isn't necessarily a bad thing, but too much of it certainly is. Unfettered capitalism has given us a system that favours the rich, the rich grow richer faster than the rest of the population. Since 1979, the top one percent saw their wages grow by 158%, while wages for the bottom 90% only grew 24% in the same time period. The average price for a single family home in the Okanagan went up by just shy of 30% in the last year.
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Re: Rents going down ...

Post by BC Landlord »

fluffy wrote: Aug 4th, 2021, 1:12 pm The housing market in its current state isn't a product of capitalism, it's a product of greed.
Trying to protect your investment and stay afloat is not greed. To many small landlords (like myself), it's a retirement plan. They are happy to break even at year's end, hoping that some time down the road they would benefit from the equity appreciation. That's all.
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Re: Rents going down ...

Post by GordonH »

BC Landlord wrote: Aug 4th, 2021, 12:20 pm
... or maybe not, as evident!

Blaming capitalism for everything under the sun is Marxists trait. We all know it's a failed concept.
foenix wrote: Aug 4th, 2021, 12:55 pm Have you seen China lately? Is that what failed state looks like? :200:
Knowing they had to develop a virus then unleash it, says a lot.
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Re: Rents going down ...

Post by BC Landlord »

foenix wrote: Aug 4th, 2021, 12:55 pm Have you seen China lately? Is that what failed state looks like? :200:
Hmmm, ... never heard of other people immigrating into China, en masse. It's quite opposite actually.
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Re: Rents going down ...

Post by JLives »

BC Landlord wrote: Aug 4th, 2021, 1:08 pm
Glacier wrote: Aug 4th, 2021, 12:35 pm ... but with rent controls, the homeowner can raise his rent up to market conditions when the renter moves out (typically every 2 years), which will be HIGHER than it would be otherwise if there was no rent control in place to begin with.
You've hit the nail on the head. That is exactly what rent controls do. Every serious landlord would do just that. In fact, one of my units changed tenants a couple of weeks ago. The rent went up 30%. And make no mistake, I stay competitive, because every landlord does it. Here is the rationale ... On average, my tenants stay anywhere from 1 to 2 years, rarely 3. The cost of all overheads (i.e. taxes, insurance, maintenance .. etc) usually increases by 10% annually. So, let's see, ... 2 years of 10% compounded is 21%. Then, I add another year, just to be on the safe side. That amounts to 33%, but I round it off to 30. Thank for all this to rent controls. Does it have to be like this? No, it doesn't. But some governments think they know better.
Maybe your tenants would stay longer it the rent was more affordable? 30% increase in one year in crazy. As is claiming costs increase by 10% per year. And how are you calling that thanks to rent controls? Sounds more like a landlord's choice to me.

And, no, all landlords do not charge out the whazoo just because they can. Regardless of market pricing. I could have added $1200/month+ easily to the last place I rented out. But I instead chose to charge reasonable rent that still covers expenses and gives a family a home. Because that's what the purpose of renting is supposed to be, providing a home for people to live in.
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