You can do that without a landlord. Just get a mortgage and buy a house. Why should a landlord get involved and put their deposit and take on risk for you?
That’s simply not true. Landlords try to militate the risk as they’re not idiots. But they can certainly lose off a rental unit. If tenants don’t pay rent the landlord gets no income, but they still have to pay their mortgage. A landlord can sue a non paying renter and go after guarantors, but that’s costs a lot in legal costs and doesnt help if there’s no money to collect. And housing prices can stagnate or even drop, so there is plenty of risk. In general any investment comes with risk, the bigger the potential return, the bigger the risk or more loss.
The landlord isn’t risking their house and livelyhood. They risk not leeching your paycheck. That’s not a real risk. Poor people risk both when they start a business, or do anything. That is risk.
Most landlords are leveraged. The house they rent out is collateral against the loan they used to buy the building, which they also had to put up cash deposit, If there’s suddenly a big expense ( new roof needs, etc), or a tenant just doesn’t pay rent, they still have to make payments on their load. If they can’t afford to, the bank can foreclose on the house and take ownership of the house - the landlord loses everything including their initial cash deposit. If they also live in the property, they literally are risking their home too. Being a landlord is a business and like any there are risks. A super rich landlord, or mega corporation that buys properties and rents out has less risk as they can handle short term losses for potential longer term gain.
That’s my point. Go ahead and get a mortgage from the bank. You’ll need a deposit of course and a decent credit rating and income or they reasonably won’t trust you with their money. If you don’t have those things, well, that’s why we need landlords - someone to put money up and take the risk on your behalf.
Lnadlords increase competition for the property making it more expensive.
Someone putting an offer on a property might be just fine getting a mortgage for that amount, but not for the amount needed if 5 different landlords are trying to outbid them so they can rent the property to them.
That’s a very marginal effect - and really only in a sellers market. Right now in most places, there are many properties sitting on the market that anyone could put in a reasonable offer and get.
Taking enough to pay the mortgage would be a fair rent price, so long as it is a rent to own situation.
Fair enough, I personally don’t consider that as renting and instead view it as form of buying the house.
You can do that without a landlord. Just get a mortgage and buy a house. Why should a landlord get involved and put their deposit and take on risk for you?
Landlords, like all other rich people, do not take on any risk ever. Only the poor take on risk.
That’s simply not true. Landlords try to militate the risk as they’re not idiots. But they can certainly lose off a rental unit. If tenants don’t pay rent the landlord gets no income, but they still have to pay their mortgage. A landlord can sue a non paying renter and go after guarantors, but that’s costs a lot in legal costs and doesnt help if there’s no money to collect. And housing prices can stagnate or even drop, so there is plenty of risk. In general any investment comes with risk, the bigger the potential return, the bigger the risk or more loss.
The landlord isn’t risking their house and livelyhood. They risk not leeching your paycheck. That’s not a real risk. Poor people risk both when they start a business, or do anything. That is risk.
Most landlords are leveraged. The house they rent out is collateral against the loan they used to buy the building, which they also had to put up cash deposit, If there’s suddenly a big expense ( new roof needs, etc), or a tenant just doesn’t pay rent, they still have to make payments on their load. If they can’t afford to, the bank can foreclose on the house and take ownership of the house - the landlord loses everything including their initial cash deposit. If they also live in the property, they literally are risking their home too. Being a landlord is a business and like any there are risks. A super rich landlord, or mega corporation that buys properties and rents out has less risk as they can handle short term losses for potential longer term gain.
Exactly, why should a landlord get involved? Who fucking needs them?
That’s my point. Go ahead and get a mortgage from the bank. You’ll need a deposit of course and a decent credit rating and income or they reasonably won’t trust you with their money. If you don’t have those things, well, that’s why we need landlords - someone to put money up and take the risk on your behalf.
Lnadlords increase competition for the property making it more expensive.
Someone putting an offer on a property might be just fine getting a mortgage for that amount, but not for the amount needed if 5 different landlords are trying to outbid them so they can rent the property to them.
That’s a very marginal effect - and really only in a sellers market. Right now in most places, there are many properties sitting on the market that anyone could put in a reasonable offer and get.
The fewer people making those offers the more those prices will come down.
Increase taxes on secondary properties and people will be more motivated to lower the price in order to sell.
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