1451 replies to this topic

[rjag]

 

I get it that those who own rental properties want to be rich and make as much MONEY off their property as they can, but when a landlord is legally permitted to  charge a person 3/4 of their entire monthly income (if not more) just to have a roof over their head, then that creates a HUGE social  problem and contributes to homelessness, poverty, and eventually leads people to crime.  I hope that the NDP will legislate maximum amounts a person can rent their property for, and that we do get the 2% dropped off the annual rent increase.

 

I understand where you are coming from and get it. However the only way you can legislate rent controls like that is with government owned housing. (read taxpayer subsidized) if the private rental stock is threatened then the ones that can will convert to condos and get out. The ones that cant convert will sell and take their capital to other jurisdictions. What you will also get is no improvements, buildings will be run down and become slums. There has to be a reasonable rate of return to make it worthwhile. Its a business not a charity. 

 

The only way to get a handle on rents is to get to a 3-4% vacancy rate, then buildings have to compete with each other. Gotta build more rental stock and thats going to mean tax incentives to do it

[Mystic-Pizza]

" Its a business not a charity. "

 

 

 

Then that's what we need to change in society......the human heart. Do things for the better of others, rather then the better of yourself. Put others before yourself and the reward will be greater then any money you could ever make for the rest of your life.  Call me old fashioned, but history tells us that approach always comes out the winner. Believe it or not.

[tjv]

I understand where you are coming from and get it. However the only way you can legislate rent controls like that is with government owned housing. (read taxpayer subsidized) if the private rental stock is threatened then the ones that can will convert to condos and get out. The ones that cant convert will sell and take their capital to other jurisdictions. What you will also get is no improvements, buildings will be run down and become slums. There has to be a reasonable rate of return to make it worthwhile. Its a business not a charity. 

 

The only way to get a handle on rents is to get to a 3-4% vacancy rate, then buildings have to compete with each other. Gotta build more rental stock and thats going to mean tax incentives to do it

Well said

 

Mystic Pizza, in expensive housing rental markets its common to have a roommate to get costs down.  Perhaps consider upping to a 2 bedroom and get a roommate.

 

In regards to the charity comment I for one am generally fed up with Canadian charities as from what I can see are just enabling people to continue in their current lifestyle.  I've said this before in other threads but give them free food/meals, more money for drugs, smokes, booze, etc.  Give them subsidized or free housing - more money for drugs, smokes, booze, etc.  The list is extensive, but you get the point.  The only charities that I will support are children as they didn't have a choice to being born to deadbeats, etc

[LJ]

I am all for dropping the 2% bonus for landlords. Rental rates are unreal and out of control in Victoria.

 

Luckily I have been in my place for several years before the rental rates skyrocketed, but it's bothers to think that the person in the exact same identical apartment above me is paying $250 dollars more per month then I am, and my rent is already too high as is. A person's monthly rent  should never exceed 1/4 of their total monthly income. Yet that's almost impossible in Victoria because hardly anyone makes enough money to support the rental rates, unless they get 4 or 5 roomates.

How about if the government said you have to move somewhere where 1/4 of your total monthly income would cover your rent? That would be fair right? Enjoy your time in Armpit SK.

[spanky123]

I understand where you are coming from and get it. However the only way you can legislate rent controls like that is with government owned housing. (read taxpayer subsidized) if the private rental stock is threatened then the ones that can will convert to condos and get out. The ones that cant convert will sell and take their capital to other jurisdictions. What you will also get is no improvements, buildings will be run down and become slums. There has to be a reasonable rate of return to make it worthwhile. Its a business not a charity. 

 

The only way to get a handle on rents is to get to a 3-4% vacancy rate, then buildings have to compete with each other. Gotta build more rental stock and thats going to mean tax incentives to do it

 

Look at cities with a large amount of subsidized or Government owned housing (ie Europe). Wait lists are often 10-15 years plus. In fact it is a joke in many cities that as soon as your kid is born you put them on the wait list so that maybe they will have a place to live when the graduate from school! https://www.bbc.com/...tion-44413766. 

[rjag]

Look at cities with a large amount of subsidized or Government owned housing (ie Europe). Wait lists are often 10-15 years plus. In fact it is a joke in many cities that as soon as your kid is born you put them on the wait list so that maybe they will have a place to live when the graduate from school! https://www.bbc.com/...tion-44413766. 

 

Yup and constantly checking the obituaries for people that lived in rent control buildings in NYC.

[tjv]

Frankly government has no business interfering with a private business ability to make income. Rents should fluctuate based on supply and demand just like everything else you buy.

How would you like it if say all food prices were regulated with set prices? Same with salaries - an accountant with 12 years experience will make $42.73 per hour no more no less.

We had a period for about 20+ years with zero rental construction primarily because of over regulation. Do you want to return to that? I'll say it again this rule has scraped my interest in building a 4 storey rental building.

[spanky123]

Frankly government has no business interfering with a private business ability to make income. Rents should fluctuate based on supply and demand just like everything else you buy.

How would you like it if say all food prices were regulated with set prices? Same with salaries - an accountant with 12 years experience will make $42.73 per hour no more no less.

We had a period for about 20+ years with zero rental construction primarily because of over regulation. Do you want to return to that? I'll say it again this rule has scraped my interest in building a 4 storey rental building.

 

Nobody said the argument had to make sense. Socialists view real estate and other hard assets as a sign of wealth. Their goal is to try and diminish that wealth so that they can then replace the governing class. 

[Mike K.]

...and spread that wealth among the top tier of the political and social strata.

[spanky123]

...and spread that wealth among the top tier of the political and social strata.

 

To paraphrase the saying, "all dogs are created equal - except your dog"!

[Nparker]

Serious inquiry. I have a friend (no, not me) who has experienced a change in life circumstances that likely will necessitate a move from their long time residence (24 years). They very much want to stay living as near to downtown as possible and I am wondering if there is one good source for finding current and upcoming rental vacancies. Please feel free to private message me if you like as I don't want my request to potentially hijack this thread. Thank you

[Casual Kev]

I think a measure of rent control is good, but it needs to be gauged so that landlords don't miss out on long-term profits. As in, I don't think people should have to put up with 10%+ rent increases because of real estate fluctuations but it can't be so low that rent-controlled prices never have a hope to catch up with market rates, which is where it causes supply to dry up, incumbent tenants to dig in and new tenants to get screwed. A cap at 4-5% + inflation could be good without being unfair. If tenants feel gouged the blow has been softened enough they have time to move elsewhere, and real returns to landlords are more palatable at that range.

 

Serious inquiry. I have a friend (no, not me) who has experienced a change in life circumstances that likely will necessitate a move from their long time residence (24 years). They very much want to stay living as near to downtown as possible and I am wondering if there is one good source for finding current and upcoming rental vacancies. Please feel free to private message me if you like as I don't want my request to potentially hijack this thread. Thank you

 

PM'd, hope it helps. 

Edited by Casual Kev, 28 September 2018 - 11:56 AM.

[Nparker]

...PM'd, hope it helps. 

Thank you.

[snub]

Seems to me that renters aren't very good at math. Take for instance a purpose built apartment building on the Veterans Memorial Parkway, now being sold as condos. $450,000 for a 2 bedroom on a noisy street. Suppose I had $45,000 for the down payment. Lets do the math.

 

Mortgage payment.......$2120.00 per month

Property tax..................$200.00 per month

Insurance.....................$100.00 per month

Strata fees...................$150.00 per month

 

Not including maintenance and repairs, that is $2570.00 per month, and I would be really, really lucky to get $1500.00 per month in rent.

 

So I would going in the hole $1070.00 per month. Not a very good investment.  Maybe Armpit SK is the place to be.

[Victoria Watcher]

you would only be going in the hole if the value did not increase whatsoever.  what if it went up just $20,000 per year in value?

 

450,000 today

470,000 in 2019

490,000 in 2020

510,000 in 2021

 

now you are up $24,000

Edited by Victoria Watcher, 28 September 2018 - 07:34 PM.

[lanforod]

I'll be happy to leave the rent at 1500 for 4 years if you guarantee that the value of the real estate will go up 20k per year.

[Mystic-Pizza]

I'll be happy to leave the rent at 1500 for 4 years if you guarantee that the value of the real estate will go up 20k per year.

$1500?  Boy, you must have one heck of a job if you can set aside that much every month for rent!  Holy smokes.....you buying drinks tonight by any chance? You must be making $40 bucks + per hour to be paying that much for rent.

Edited by Mystic-Pizza, 28 September 2018 - 07:54 PM.

[lanforod]

Yeah, you're really living in the wrong town. That's normal, or even low around here. Don't like it? Leave.

[Mattjvd]

Using the increase in property value is fine it your are an individual investor with one or two investment units. Then the principal portion of your mortgage payment is a deposit into a savings account, the rent needs to cover the interest portion, strata fees, property tax, etc.

However, for a comercial landlord, you can't operate a business that is that cash flow negitive. If you're a few hundred bucks per month (per unit) cash flow negative there is no way you could keep paying your expenses, even medium term. You wouldn't be able to hold onto the building long enough to get a decent return on the assest.

[sebberry]

Seems to me that renters aren't very good at math. Take for instance a purpose built apartment building on the Veterans Memorial Parkway, now being sold as condos. $450,000 for a 2 bedroom on a noisy street. Suppose I had $45,000 for the down payment. Lets do the math.

 

Mortgage payment.......$2120.00 per month

Property tax..................$200.00 per month

Insurance.....................$100.00 per month

Strata fees...................$150.00 per month

 

Not including maintenance and repairs, that is $2570.00 per month, and I would be really, really lucky to get $1500.00 per month in rent.

 

So I would going in the hole $1070.00 per month. Not a very good investment.  Maybe Armpit SK is the place to be.

 

$150/mo in strata fees?  Where do I sign up?