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Educational_Paint987 t1_ja80s96 wrote

Reply to comment by Top_Ad5385 in Who here owns residential and rents it out? thinking of buying a two-family in Rahway as it is getting very cute there. by [deleted]

People seem to think that owning a home or renting out a home is some form of charity.

The bad guy is not the individual landlords...it's the commercial real estate groups, banks, investment firms and insurance companies.

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Summoarpleaz t1_ja8fh9o wrote

Yeah people are just conflating a lot in this thread. If there’s any change that’s needed, it’s not one person that needs to stop buying a second home, it’s the corporations relying on predatory practices to snatch up homes on a large scale to rent. That and/or foreign investors parking their money without improvement to the community.

Saying op should let someone who needs a place to live to buy it could be said about everyone who wins a bid to purchase a home. If I buy a home, and the person I beat out in the market also needed a home, was what I did unethical because I didn’t allow the other person to buy the home at a more affordable price?

People are understandably angry but OP is not nearly the core of the problem.

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Snownel t1_ja8hcnn wrote

>If I buy a home, and the person I beat out in the market also needed a home, was what I did unethical because I didn’t allow the other person to buy the home at a more affordable price?

If you turn around and rent that home back to them at a profit, yes.

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Educational_Paint987 t1_ja8j4j7 wrote

You could rent out at a profit and still cost the renters less monthly than if they went with a rentals business. Also, individual landlords can be more lenient when it comes to background checks and if there is a relationship even allow for late payments.

And not all people who rent are settling because they cant find homes. Many rent because of university or temporary job assignments.

There are also people who sell homes that need major work and will not be good for first time buyers. Someome whith a buy to rent plan can bring that home back to the market.

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Snownel t1_ja8jxcj wrote

None of that changes the fact that by doing so and collecting a profit, the tenant is paying you money to do nothing other than happen to have enough liquid capital to outbid them.

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Educational_Paint987 t1_ja8q4id wrote

You seem to be living in the wrong country. May I suggest a time machine to the 1930s soviet union? They would assign you a cardboard home depending on how many people are in your family or how big a bribe you give.

They also had rationing for basic foods....

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AttitudeFuzzy2938 t1_ja8qlvy wrote

How do you factor risk into your assessment?

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Snownel t1_ja8r13v wrote

We're not talking about a business selling widgets capitalizing on an arbitrage opportunity. We're talking about housing, shelter, basic human needs.

It's like asking "how do you factor in the holding risk for water", the question you should be asking is "why the hell is there risk for this to begin with?"

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AttitudeFuzzy2938 t1_ja8rfyk wrote

I'm not talking about a business either. There are risks in buying vs renting and I'm curious how you factor that in, because the way you speak is so staunch in the present that you don't seem to factor for the future.

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