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No one really understands our struggle
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this post was submitted on 23 Aug 2023
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For individuals who own like a single rental property as an investment property, you could blame the banks. Maybe the tenants don’t have the 20% the bank would require for a mortgage. But they can afford the monthly rent for the larger house rather than a smaller apartment. Also the landlord takes on the risk here. (Market value, no Rent payment, property damage, maintenance…)
They take on the risk? That's hysterical. Landlords don't risk market value. They buy up all the houses when they're cheap, make their money back and then some by renting the property, then make even more money when the housing market goes up and they kick the tenant out to sell the property. They don't risk property damage, that's the entire point of a security deposit. They don't "risk" maintenance, that's called doing their job.
Ok kid. I think you missed the first sentence in my comment.
I don't understand why a 20% deposit is necessary. If you can make repayments as you can make rent, let them own the house already
You don't need 20%, you do need at least 3% in most cases. You then pay pmi which is an extra cost.
PMI sucks too. (Again, banks suck.) but it’s still better than paying rent.