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this post was submitted on 01 Apr 2024
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Asklemmy
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If you are engaging with housing as an investment vehicle, you are part of the reason why there is a global housing crisis.
Housing is a human right and should be legislated as such.
I own a flat that I rent out to people who make similar amounts of money as I do.
That allows me to take a lower paid job that allows me to do more open source work.
I agree with your second paragraph.
This is lemmy. You are no better than musk or bezos for doing that you filthy capitalist.
You should do you open source work hungry, naked and in the cold while someone is whipping you. Like all the virtuous 14yo tankies that are downvoting you certainly do.
/s in case it's needed
And coal plants provide power and heat to millions of people, that doesn't make it right. The ends do not justify the means.
I'm renting to people who rent as a convenience, not because they can't afford to buy a flat. I offered them decreased rent during COVID and they declined.
No no no you don't understand you are just stealing from them even if they don't want to buy. Everyone must have a house, there should be no landlords nor renters. /s
You are forming your opinion on a statistical anomaly worth of experiences. The reality is rent is priced fixed by very few algorithms - all of which by their nature drive the prices higher every year.
You are renting to people who choose to rent, the vast majority don't get to choose. And even if they choose to rent, that's because owning is too expensive in their eyes (money or time or paperwork or otherwise) - it does not mean they wouldn't want to own if the cost was lower.
I can't imagine anyone declining reduced costs unless phrased poorly or out of guilt.
I think the situation is different in different countries.
The assumption in your last last paragraph is very likely incorrect, I asked them outright if they wanted one and they said no, they're software developers and warming pretty well in their cushy home office, thank you very much.
I think the scenario I described applies to most Western countries.
Congrats on having rich renters then. If they're wealthy enough to not take reduced rent then they are likely not your countries average renter.
They're probably not. They might be pretty average for the region though.
The electronic device you used for typing all that crap? Probably slave labour. That's before looking at the power you wasted to do so, and it's origin. Virtue signalling much?
Haha I would really like the thought process of the person who downvoted you. Maybe “since I'm forced to live in an immoral system, I can't live a perfectly moral life and having a phone is OK. But going one iota beyond what I do is immoral”
IDK. I wouldn't have posted if I wouldn't have wanted to read people disagreeing with my assessment of the morality of what I do. But I was probably wrong to hope for a more nuanced criticism that actually tries to engage with my arguments instead of just knee-jerk downvoting.
There are a few hot topics on lemmy and this is one of them. I think you did a good thing, I found that interesting and that's what I came to this thread for.
I dislike speculation on housing but appreciate there are many reasons why someone becomes a land lord, and I have been the person renting from someone like you when I could afford to buy. I just knew I wasn't going to stay in that city, I was getting a good service and am happy for what I paid for. And for how carefree that period of my life was.
Tankies are not known for appreciating nuances tho.
I think it's hard to morally judge if it's good or not. I don't know who would have bought it if not for me: some faceless rent extraction company who keep increasing rent at the maximum legal rate? Or (unlikely in that spot, but possible) a couple who would live there?
As it is now, there's a couple living there. Software engineers who already said they'll move on soonish because they think Berlin is cooler. They pay below average rent and the one time something broke, I simply sent a repair person ASAP. Not really people I feel I'm taking advantage of.
I think there can be some middle ground. Obviously speculation is pushing up both rent prices and the cost/availability of houses to buy. There are some interesting options, I like the idea to only allow residential property to be bought by physical persons - regardless of whether that's for living in it or as an investment it would put a damper on prices sky-rocketing.
Corporations trust funds and so on can still go mad on commercial property. Offices, malls and warehouse are not a necessity and let the market decide, I think that could be a win win. Feasibility of this in various countries would obviously vary but I'm sure something can be done.
I've also seen suggestions aroud limiting the number of properties one can buy/own. Interesting but more complicated to enforce and IMO not needed.
So you’re not working and collecting money for it so that you have more free time to yourself that you use for your own personal interests.
You then make sure the people you rent to don’t have that free time, and raise the overall property prices by taking an available unit off the market.
Got it.
Nope, that's very much not correct lol. I'm working. It's just that you don't find jobs that pay super much for open source work.
And the people renting my apartment are DINKs, they have a lot of choice about how much free time they have.
No idea about the market price thing. But I'm going to assume you got that wrong too, since the rest of your comment was baseless speculation.
That’s nice you rationalize it. The damage you’re doing is minimal, so don’t worry about the avalanche snowflake.
I understand you’re working, but you’re not working as much as the people you rent to (at a minimum to make up for the rent). They may have the means and not feel the impact, but that doesn’t change the math.
The market is based on supply and demand. You reduce supply, therefore increase demand. More demand equals higher prices.
Seeing as how you lack the basic understanding of these concepts, yet respond with arrogance, I won’t bother replying anymore.
I am working as much as the people I rent to. I'm just working a job that generates more value for the public and less value for the company than a comparable job that I could get elsewhere. Therefore they pay me less than if I would work exclusively for some company's bottom line.
Fine, I’ll bite.
I’m one of the privileged who own a home which doubled in value over the last three years. I have enough free cash flow to buy a second or third rental property. I’ve contemplated it, and even though me and my family would be better off because of it, I refuse to.
I have friends who do so, and I’m not running to chop off their heads. People are born into this system and personally benefit from it, so they don’t question it.
The housing system is a wealth cheat code that needs reform. We’re heading towards something similar to the Chinese ghost cities where wealthy individuals use land as a bank due to the volatility of other financial instruments. Look at the occupancy rate of the numerous NYC skyscrapers that all popped up at lightning speed before this whole market was projected to inflate in value. People own these and other “investments” completely empty to hold value. Most are unrented.
It boils down to the personal freedom that wealth affords. You have more freedom to accept less compensation because you own land. You support public infrastructure, which is commendable, but you have that privilege on the backs of others. You’re not alone, and the law promotes this behavior. It’s like you’ve drilled another hole in society’s boat, but you bucket back the water to compensate. The boat is still sinking on the whole as not everyone uses their time generously.
There are other ways to add value to society that provide passive income that don’t have the same negative consequences (that we’ve identified anyway). You’re acting as a rational actor playing by the rules; those rules just happen to be broken.
Thanks for contributing to the record of public code that will benefit society. I just hope we won’t need these harmful wealth loopholes in the future to afford you (or anyone else) that comfort.
The reason there’s a global housing crisis is government ultimately controls the throttle on new housing development, and government always allows less than the demand.
Our supply doesn’t match our demand and the problem is getting worse as populations increase.
For example, there are countless places where an apartment building would be more profitable than a new house, but zoning density restrictions force people to either build a house or nothing.
The UK has some of the worst housing issues in Europe, yet the amount of houses (dwellings) per person has slightly increased since 2001
21,210,000÷59,113,0000=0.35 Houses per person in 2001
24,930,000÷67,350,695=0.37 Houses per person in 2021
Yet rents and house prices have absolutely skyrocketed. Supply exceeds demand, it's just greed, long term empty investment properties and government inaction.
Sources https://www.gov.uk/government/statistics/dwelling-stock-estimates-in-england-2022/dwelling-stock-estimates-england-31-march-2022 https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/articles/overviewoftheukpopulation/2020#the-uks-population-continues-to-grow-but-at-a-slower-rate-than-previously
That’s really interesting, thanks.
I recently did some research on this stuff for a school project and found pretty much the same thing. Also came across Houston as an example of a city where zoning is mixed and the laws are very loose, and it seems to work itself out just fine.
It's not just about new housing though, it's also about fiscal policy which makes housing a more attractive investment vehicle through things like negative gearing and capital gains tax minimization than other things such as the stock market; the result is that prices are artificially inflated and you create a "renter class" who can no longer afford to buy, ever. Right now we're financing Boomers' retirements.
The question is, will the politicians have the political balls to fix it once the boomers have died off, or will they just let the profit roll on down through the generations, ultimately letting birth be the sole determiner of your societal class in life?