Rent Bank

[BC Landlord]

This is EXACTLY what the government wants: to make it unappealing for landlords to operate in this province, with the end result being a reduction in housing prices and more people owning individual houses (fewer people owning multiple houses).

I think what they are pushing is high-density (i.e. apartment) properties. Just look at what's happening in Kelowna, along Harvey and elsewhere. I'll never wade into that. People still need to raise kids, and let them safely play outdoor. How do you do that from a friggin 16th floor? I grew up in a socialistic apartment building. It sucked.

[BC Landlord]

Just because you bought your house in 1970 for a few thousand dollars at 3x your income and have it paid off doesn't mean you shouldn't charge WALLET RAPING MARKET rental rates.

How do you know when and for how much Rejigger bought his house, and what his salary was then? Are you his accountant?

[Vacancyrate]

How do you know when and for how much Rejigger bought his house, and what his salary was then? Are you his accountant?

Stats Canada is a great thing.

For 100+ years the average Canadian house price was never more than 3-4 times the average Canadian wage.

That number has grown to 6-11 times the average wage.

[Rejigger]

This is, in essence, the same as saying that an empty-nester should make less money for doing the same work as a young person who's raising a family. The empty-nester should have their home paid off and is no longer required to pay for their offspring in any way (it's a choice to spend money on them at this point). Is it reasonable to expect the older generation to earn less money since their expenses should be lower than others*?

*Regardless of what the older generations actual expenses are - just like regardless of what the landlord's actual expenses are, in this example.

Just like when two pee wee hockey teams are unevenly matched and by the first period the score is 45-0 and here you are encouraging the game to go on and cheering the wining team on and laughing at the opposing team and heckling them.

At first I was a bit confused by this analogy. But then as I was trying to make sense of it I was struck - saddened even - by the idea that anyone would think others are cheering on the winning team (I thought everyone loved an underdog?) and "laughing" and "heckling" the losing team. If you wouldn't do this, why think others would do it? Not every tenant has an inferiority complex, or hates their landlord for no other reason than their lot in life.

Just because you bought your house in 1970 for a few thousand dollars at 3x your income and have it paid off doesn't mean you shouldn't charge WALLET RAPING MARKET rental rates. You can charge high rents, but you don't have to.

Should a house be sold for less than market if the owner has lived debt-free for the past 20 years (even though they need the money to pay for their own personal expenses going forward). Should a professional partner or small business owner sell to a new partner or business owner at a price that is below market (sell their plumbing business that they've worked many long hours to grow over many years, for eg.)? Should a professional partner or business owner start charging less for their service once they've paid off the debt they incurred to buy-in to or establish a practice/business (even though they, too, need the money to pay for their own personal expenses going forward)? If the answer is no, then that should also be true for landlords. Fair market value is fair market value. Why should the business of rental properties be singled-out and treated differently?

[BC Landlord]

How do you know when and for how much Rejigger bought his house, and what his salary was then? Are you his accountant?

Stats Canada is a great thing.

For 100+ years the average Canadian house price was never more than 3-4 times the average Canadian wage.

That number has grown to 6-11 times the average wage.

It is great indeed, but it all depends how you use it, or what you want to prove. I can also also say, one person is obese, and the other one is anorexic. On average they are fit, right? That's stats, but an improper use of it, to save you an argument.

To get a real picture, you need to hear the other side of the story, too. I haven't lived that long, but I would assume a lot of things have changed (for better or worse) in the last 100 years. But what I CAN tell you, is that merely 25 years ago, a small landlord with a single unit could nicely supplement his retirement, without having to use his savings (rrsp). Two units would make you a modest but comfortable living, alone. Nowadays, you need at least five. So, what we have here is both landlords' and renters' standard of living deteriorating in the last couple of decades. Having that in mind, I would ask you, ... What kind of a conclusion would you draw from that? Who is responsible? Let me give you a hint, .. it’s neither landlords, nor renters.

[ckil]

Interest rates!

[BC Landlord]

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.

[ckil]

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]

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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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]

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]

.
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.

[Vacancyrate]

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!

[Rejigger]

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]

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.