I don’t see you having any blame. Supply and demand for housing includes everything, including rentals. You would be part of the problem if you bought those places and left them empty as vacation spots or something. You didn’t, you’re supplying them to people who I’m guessing wouldn’t be able to buy them themselves. You’re not driving up the cost of housing. I’d argue that, since you’re charging less than you could, you’re actually lowering it.
they can afford the rent, so they would also He able to afford the mortgage for it if given the chance.
Have you purchased a house? Because this part is simply not true. You have to have a percentage of the cost up front. The more you have, the smaller the payments. Lots of folks who are renting out places put a lot down so the mortgage payments (and what they charge for rent) are much smaller than a first-time buyer can afford. Then you have the cost of property tax, maintenance, and repairs that the renter isn’t liable for.
This is very much the problem with the Canadian real estate bubble. People are paying rental prices now that absolutely could have paid for a house 5 years ago. But now they are paying a dangerously high portion of their income. The problem is that their rental prices that they pay now wouldn’t make the payments on the house today.
I think “designed to keep poor people out” is way off. People selling a product want nothing more than for other people to buy their product. The sellers of the house aren’t the ones setting the mortgage details - they have nothing to do with it, they just want to sell the house.
But few people can afford to buy a house outright, so they have to borrow money. The bigger the percentage of the purchase price you have to borrow, the more the payments are going to be. That’s not to punish poor people, it’s because they’re putting up their money so you can buy something, in return for them making a profit on their money.
And a mortgage plus maintainable and tax and everything else will be cheaper than renting, because if it wasn’t landlords wouldn’t be making money, so would raise rent
You’re still not getting it. Let’s say I want to live in a house that costs $600k, but I don’t have it. If I were to find a lender who would finance the whole thing (doubtful), the mortgage payments would probably be around $3k a month, and I can’t afford that either. But let’s say you have $300k to put down, so only have to finance another $300k, and your payments are more like $1500 a month, which I can afford. I pay you the amount that covers your mortgage, you end up paying property tax and other costs, but my rent is going into your property. If I live there for three years, you’ve gotten $54k in equity, even if the house’s value itself didn’t go up any, for just the cost of taxes and maintenance. Meanwhile, I got to live in a house that I flat out couldn’t afford.
I don’t see you having any blame. Supply and demand for housing includes everything, including rentals. You would be part of the problem if you bought those places and left them empty as vacation spots or something. You didn’t, you’re supplying them to people who I’m guessing wouldn’t be able to buy them themselves. You’re not driving up the cost of housing. I’d argue that, since you’re charging less than you could, you’re actually lowering it.
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Have you purchased a house? Because this part is simply not true. You have to have a percentage of the cost up front. The more you have, the smaller the payments. Lots of folks who are renting out places put a lot down so the mortgage payments (and what they charge for rent) are much smaller than a first-time buyer can afford. Then you have the cost of property tax, maintenance, and repairs that the renter isn’t liable for.
This is very much the problem with the Canadian real estate bubble. People are paying rental prices now that absolutely could have paid for a house 5 years ago. But now they are paying a dangerously high portion of their income. The problem is that their rental prices that they pay now wouldn’t make the payments on the house today.
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I think “designed to keep poor people out” is way off. People selling a product want nothing more than for other people to buy their product. The sellers of the house aren’t the ones setting the mortgage details - they have nothing to do with it, they just want to sell the house.
But few people can afford to buy a house outright, so they have to borrow money. The bigger the percentage of the purchase price you have to borrow, the more the payments are going to be. That’s not to punish poor people, it’s because they’re putting up their money so you can buy something, in return for them making a profit on their money.
You’re still not getting it. Let’s say I want to live in a house that costs $600k, but I don’t have it. If I were to find a lender who would finance the whole thing (doubtful), the mortgage payments would probably be around $3k a month, and I can’t afford that either. But let’s say you have $300k to put down, so only have to finance another $300k, and your payments are more like $1500 a month, which I can afford. I pay you the amount that covers your mortgage, you end up paying property tax and other costs, but my rent is going into your property. If I live there for three years, you’ve gotten $54k in equity, even if the house’s value itself didn’t go up any, for just the cost of taxes and maintenance. Meanwhile, I got to live in a house that I flat out couldn’t afford.
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