Rent Bank

[Even Steven]

So, the gov't becomes the largest landlord? I heard that one somewhere ...

* cue in British national anthem *

[BC Landlord]

A government employee might only take 2 weeks to address your complaint about a broken front door, or dishwasher, or refrigerator, or washing machine or several years worth of pineneedles accumulated on a roof across multiple fire seasons, or plumbing issues or hazardous trees on property or insect problem.

Instead of several months to several years all the while continuing to demand 6 months advance rent cheques.

Just a few examples taken across 4 different landlords in the past, who also thought that being a landlord was their "job"

I think, you are just ranting. Broken (non-functional) front door, dishwasher, refrigerator, or plumbing issues are all emergencies, and every landlord would address them promptly. From my experience, tenants usually don't appreciate periodic inspections, from which many of current or potential issues could be found, because they feel it is somehow intrusion on their privacy. In fact, they tend to neglect issues even if they are aware of them, for the same reason.

Again, I have no ideas how this topic descended into a landlords bashing. The topic was supposed to be about helping people in need to keep a roof over their head. What's wrong with that concept?

[Omnitheo]

Broken (non-functional) front door, dishwasher, refrigerator, or plumbing issues are all emergencies, and every landlord would address them promptly.

[Queen K]

<snip>
Again, I have no ideas how this topic descended into a landlords bashing. The topic was supposed to be about helping people in need to keep a roof over their head. What's wrong with that concept?

No, the topic is that keeping the roof over the head is killing every discretionary dollar needed, ie to be spent on emergency expenses which crop up: vet bills, Winter tires blow out and now you need four new ones at $1,000 bucks, medical emergency and etc. The Rent Bank is to assist with these emergencies, enabling landlords to keep their heads up their 's about how they are repeating the "what the market will bear" mantra.

See the difference?

[Vacancyrate]

Do homeowners call the bank when their water heater breaks?

The Government is the Bank of Canada at this point. The program I suggested would give any Canadian to purchase a home just as they would from a bank. Except interest free. Just like a student loan and without a down payment.

The Canadian government already is the countries "biggest landlord" if you want to look at it that way because the taxpayer is responsible for most of the mortgages (CMHC) in Canada if they default. Zero risk to the commercial banks!

[Even Steven]

Well, yes, the student loan program worked out so well ... Ballooning debt, hordes of people with minty diplomas in History of Classical Bum Wiggling working at Starbucks, people moving across the world just to escape the loans. Now, let's multiply this "success" by a million and get gov't into real estate and landlording. After all, the gov't is famous for its efficiency and practical approaches to taxpayers' money, right!?

[Vacancyrate]

The government's already into landlording what do you think chmc is? Effectively YOU THE TAXPAYER are on thy hook for about 67%of the total owing mortgages in Canada shoukd they default.

What's the real estate version of a useless degree? Canadian home prices are so protected that even somebody that took a degree in Toaster Oven Sciences would end up getting $100,000 a year job if we're going to make the comparisons.

Interest rates will never normalize so you people need to get it out of your head that interest rates are going to rise. We are in a New Economic era of debt where interest rates are going to be non-existent.

It's so amusing that people don't understand how deeply indebted everyone is. You think we can raise taxes for 10 years and practice austerity for 20 years and not beg people to take out more and more debt during those 20 years?

So like I said if we're doing a rent Bank we might as well go Full Tilt and just give everyone mortgages who wants them because the name of the game is to protect house prices not to help indebted renters.

[BC Landlord]

So like I said if we're doing a rent Bank we might as well go Full Tilt and just give everyone mortgages who wants them because the name of the game is to protect house prices not to help indebted renters.

Liking rent banks to mortgages is quite bit of a stretch, wouldn't you think? No, the "name of the game" is helping people with rent payments in unforeseen circumstances, and at NO COST to them. How is this wrong?

[Vacancyrate]

No, the "name of the game" is helping people with rent payments in unforeseen circumstances, and at NO COST to them. How is this wrong?

All it does is put a floor under high home prices.

People are short on paying rent because house prices have risen 3 times as fast as income in Canada over the last 2 decades and it's only going to get worse.

Letting renters take a loan out to pay RENT is like a renters mortgage without ownership. It only helps the landlords and protects high house prices.

The banks use Canada's high home price as COLLATERAL on the loan they issue you. If home prices fall - also known as the devaluation of the COLLATERAL of the loan - then the bank (and therefore Canadian Government) is in trouble. They lent you 500,000 dollars to buy a 500,000 dollar house but if the house is worth 400,000 and you default then the bank doesn't get to recoupe their full costs and they take a 100,000 dollar loss. That will never be allowed to happen.

Home prices are more protected than a bank vault in Canada.

[Vacancyrate]

Capitalism used to mean that the shopkeeper with the best prices and value wins.

Store #1 sells apples 1.99/kg

Store #2 sells apples 1.49/kg

Both stores stock the same apples. The "power of the market" means the best price wins and the consumers buy the cheaper apples and everyone is better off.

Right now the Bank of Canada is going around and lending people larger and larger amounts of money so they keep buying apples from Store #1, the higher priced apples. The Canadian Government is printing CERB cheques so people can keep buying apples at 1.99/kg and they are lending businesses huge amount of forgivable loans so they can keep buying apples at 1.99/kg. The banks are allowing you to stop paying your debts for months at a time so you can keep buying apples at 1.99/kg.

This rent bank is giving loans to to renters so the store selling the apples at 1.99/kg doesn't lose business and the renters can keep on buying apples at 1.99/kg

The last thing we want is cheap apples in the country. Our economy now depends on apples being as expensive as gold and gaining 10% a year.

They'll keep on lending out more and more money to keep the APPPLE PONZI going. That's all this is.

[featfan]

I can see some tenants using this and getting ahead.
3 tenants in the place I live have bought homes last month.
Lived here and saved every dollar.
Not someone trying to scam the system.
Having the option to get a small loan to help you move up seems okay to me.
Damm, rents here now for a 2 bedroom are $1400, 1 bedroom $1240.

[BC Landlord]

Store #1 sells apples 1.99/kg
Store #2 sells apples 1.49/kg

Both stores stock the same apples. The "power of the market" means the best price wins and the consumers buy the cheaper apples and everyone is better off.
...
This rent bank is giving loans to to renters so the store selling the apples at 1.99/kg doesn't lose business and the renters can keep on buying apples at 1.99/kg

Seriously man, the rent bank is for people (to use your apple store analogy) struggling to pay $1.49 apples (store #2). You don't have to be an oracle to predict that the delinquencies rate would go significantly up in the wake of Covid if something is not done. You have to help these people somehow. It's about them, not rental properties.

[Vacancyrate]

Seriously man, the rent bank is for people (to use your apple store analogy) struggling to pay $1.49 apples (store #2). You don't have to be an oracle to predict that the delinquencies rate would go significantly up in the wake of Covid if something is not done. You have to help these people somehow. It's about them, not rental properties.

A one bedroom apartment is almost 1500/month plus utilities.

There are no $1.99/kg apples in Kelowna.

They all cost 3.99/kg and the apple-bank prevents the shop keepers from having to lower the price.

Can't raise wages. Can't let prices fall. Just hand out more and more debt.

Welcome to the modern economy.

[Queen K]

That's my whole point on my first post, the damn Apple Bank is keeping the Apple Bin rent and triple net higher than the orchardist should have it.

[BC Landlord]

There are no $1.99/kg apples in Kelowna. They all cost 3.99/kg and the apple-bank

Sorry, I tried, but I'm not sure I can follow your apples analogy any longer. I mean, seriously, .. what else do you propose to help people missing out on a rent? Go to a shark loan place?