What are the cons to setting rent ceilings in cities?
>>73767121
>how does property value and investment work
>>73767121
The emergence of a black market for rent, I.e people will pay more under the table to live there, and that creates a barrier of entry for lower income families/people
>>73767121
>>73767121
Supply decreases while demand increasos. Also decreases the cost of living and quality of life.
>>73767121
>>73767280
You also have the property owner suffer from growing costs while the renters pay the same, meaning they have to find another job while trying to maintain and rent out property, and less cash to
improve the property, leaving poorer conditions for the people renting.
>>73767280
I fronted like 2500 to the super back in Manhattan around 2006, for a 1bdr Apt in a decent part of the city.
Rent was super low, too. Grandfathered in from an older tenant. Payed maybe 700 a month for nearly ten years.
>>73767121
THE WRATH OF THE JEW!
less money for jewish bankers
>>73767280
The barrier is already here in the form of unaffordable rent for """"entry level"""" appartments.
There are like 3 times as much apparentments available than there are people looking for one, by all economic and capitalistic ideals, rent should be low as fuck right now, but it isn't. This is because investors make more by refusing to rent them out unless some wealthy family of 4 comes along that is fine with overpaying for their home.
Meanwhile a whole generation of young able career hungry fresh adults are getting fucked because they're just starting their adult life but cannot afford decent places to live.
Of course the real problem is that living space has infinite demand, you can't just decide to not have a home if you want to get anywhere. People are shamelessly abusing this. It's a form of pseudo monopolization, where property owners collectively agree to, but without actually making an agreement, raise the prices of living space over what they would actually be worth.
It becomes extra bad if the government is financing new living space in the hopes of combatting this problem, which then leads to even more empty appartments that generate more money than if they would be rented out.
The solution would then be:
- Cut all government subsidies to build new appartments
- Introduce a tax on appartments that are just sitting empty to collect benefits without renting them out (ie. people gaming the system)
This would force property owners to find renters in a timely manner again instead of spending years of waiting for someone who doesn't give a shit about the rental prices.
If you wanna combat homelessness at the same time, you can play around with some benefits for taking in poor people to make it more economically viable for you to help someone get off the street, but this might backfire, so take it with a grain of salt.
>>73767121
The same thing that happens everytime the government enacts price controls.
Sudden shortage of supply and the creation of a black market.
>>73767121
could be a good thing if done in the right place and used to correct gov spending in other palaces.
Asians get their schooling/rent paid for so rent is through the fucking roof here because the gov pays for it anyways. if you arent a student though you are FUCKED
>>73767713
good post
>>73767783
Canada is a shithole, who would actually want to live there anyways.
>>73767713
Property tax is too low. That's what makes hoarding valuable properties for speculation attractive. Property tax should be a little bit higher than passive appreciation, so you would need to use or develop properties in order to profit from them.
>>73767956
Well the logic behind what investors are doing right now is that if nobody living in a place, the cost of maintaining it in a pristine state is super minimal. Maintenance is almost zero if everything (water, gas, electricity) is turned off, nobody uses the place, etc.
You practically only have to go in once a month and dust it off a little.
If you fully own the place, that is if all the debt for purchasing the appartment or house have been paid off, then maintaining this state is pennies and you can do it for years.
Any sort of government assistance in owning or constructing new property is then free money more or less. You basically play a zero sum game or even make a little extra while the place is empty and wait until you find that one renter who's willing to pay your inflated prices.
Property tax treats everyone equally tho and herein lies the problem: Even with a "correct" property tax, not renting out the place would STILL make it worth more. The real solution is to specifically target those who don't rent out or use their place.
>>73767121
Scarcity
>>73767121
Golden God
>>73768222
It has everything to do about negating passive appreciation. Once that's done, keeping some property empty cannot possibly be profitable in any way.
Having everyone pay the same property tax rates for the same property value removes the possibility of gaming the system by skirting around the definitions of "lived in" or "rented out" or whatever. The tax collector just assesses property values now and then and adjusts taxes accordingly.
Property tax is a capital tax, not an income tax. It's not a bad thing to focus city taxes there across the board.
I pay 770 a month for an apartment in the middle of Nogville. I used to own it, but some new people bought the bulk of the units and used the HOA to squeeze out the condo owners, and I can tell you right now this shithole will never be worth that much.
>>73768586
>gaming the system by skirting around the definitions of "lived in" or "rented out" or whatever
Good point, this would definitely be a problem, but it would also raise overall rental prices. It might be fighting fire with fire in the end, where now rental prices are as high as they are because of the property tax and not because of people gaming the system.
>>73767724
pretty much this
if they can't make money anymore from their rental, they will sell it, and the number of availble properties for rent goes down
>>73767956
>Property tax is too low.
derp, typical socialist idiot
>>73767713
quality post
>>73767713
>rent should be low as fuck right now, but it isn't
>people hate making money
you're a moron
live in a cheaper city/town/get roommates
>>73767121
Venezuala tried this and their housing market went to shit because landowners stopped spending money on maintenance. Price caps are a bad idea. High prices might make consumers suffer in the short term, but what it does is send price signals to the market that there's more demand and then entrenepreneurs/investors will see this as an opportunity to make money and react to these conditions, so supply comes in the long term to take advantage of it.
>>73767956
>Property tax should be a little bit higher than passive appreciation, so you would need to use or develop properties in order to profit from them.
>When you buy a house to live in on your own, the government should make sure that you lose money on it.
wew lad, sure is eurocuck up in here
>giving the government the ability to determine price
They can hardly draw up a budget for themselves, let alone figure out the proper prices for buildings. They would just set it so low that nobody could make a profit selling them.
>>73769242
>I don't understand supply and demand
>>73767121
If the ceiling is below current market rate than you will have a shortage of available housing. Land lords will not rent out spaces at a lower rate than what they want/normally would. If revenue stream is down because of a shortage and less money coming in from rented spaces than landlords will sell the land. Which could lead to a mall going in or some other shit. If the price ceiling is far above the market rate nothing. But then what is point of the ceiling then? Source: supply and diagram, literally high school level micro.
>>73769330
Fucking this. You're not gonna be able to tame rent prices using the government. Best you can hope to accomplish with that mentality is people not creating new housing for rent, leading to increased demand, but stagnant pricing, which will just have property getting dumped.
Really, the best way to lower renting prices is to get rid of property taxes, focusing instead on income or sales tax.
>>73769500
uhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh
dude what? you're asserting that rent is "higher than it should be," in other words, that all renters have colluded to artificially inflate prices and are actively preventing others from undercutting the market, or that all other potential property investors are too stupid to see this opportunity.
so which is it then Hans, is there a widespread racket, or are moneyed Germans too fucking stupid to make more money?
>>73767713
>appartments that are just sitting empty to collect benefits without renting them out (ie. people gaming the system)
literally does not exist, never heard of a property owner getting money for having a vacant unit. he still has to pay property taxes. the only tangential benefit is that it can be listed as a loss for income tax deductions, which is meager compared to rental income.
maybe in Germanistan but not here
>>73767121
>mandatory wifi fee
>fee is $1000/month
>>73767121
>What are the cons to setting rent ceilings in cities?
Shut of immigration thus reducing demand, thats how prices are made.
Now drop Bernie and join the only candidate who will fix wages and rent prices through lower immigration
>>73767121
Shortages.
Imagine 200 people and 100 widgets .
If the widgets were 100 dollars each, those who cannot afford it will not but it.
If the widgets were 1 dollar each, there would be a race for them leaving many out of the loop.
>DemandCurve.jpg
>>73770144
And?
>>73767547
In London the average rent is now £1500 a month ($2166) - an increase of almost 400% since 2012. Do you think landlord costs have increased by 400% in that period?
