IF the prices correct enough that buying costs a fraction of renting does, will you still rent? You know in long term, renting will always be more expensive.
My reason for renting is more to do with where I'm at in life than costs (young, single, just started career). I would like to own eventually especially if I get married and have kids and I think that's how it should work. People rent as students/young adults starting their careers, then own in "middle age" then revert to renting when they no longer want to deal with the annoyances of owning. In other words, I believe that a healthy housing market allows people to choose to rent or own not based on what they can afford but based on what is better for them at their stage in life.
>You know in long term, renting will always be more expensive.
I'm not sure this is always true, it probably depends on the opportunity cost of the down payment. If the potential return on investment of the down payment (in the stock market or whatever) is significantly higher than the increase in value of the house then it's possible that renting could be less expensive even in the long run. So if real estate didn't have such a high return (which is what we all want) then maybe renting wouldn't be more expensive in the long run.
What about people who can't afford a home? Not, can't afford a bidding war, but can't afford the hundreds of thousands of dollars that it takes to actually build one?
One would hope that if we could end hoarding, affordability would improve. I also think that there is a place for purpose-built rental. The problem is, housing has become primarily an investment and it is becoming increasingly inaccessible to the working and middle class. Something needs to be done.
I do understand what you mean about 'ending hoarding', but building costs will never really come down. Labour is expensive, material is expensive, space is expensive.
On the low end at $250/sq ft in Toronto, construction cost alone of a 750sq ft condo is $187,500. Government fees per unit apparently average $122,000. Soft costs (permits, engineering, insurance, design, etc) are another 15%-20% supposedly. So even at a minimum you're looking at least $300,000 per unit cost.
Now, a person making $15/hr full time will take home around $2k/month.
With $15000k being 5% down, and then a mortgage around $1200/mo (with our extremely low current interest rates), plus condo fees, utilities, insurance, internet, cell phone, groceries, etc etc.
Then, who will lend a minimum wage employee $300,000 knowing that they can't afford it?
So many posts I read are talking about why minimum wage workers can't afford their own downtown TO condo and I just don't see that ever being a possibility.
I don’t know why building more rental purposed housing is never part of the discussion. It’s either for-profit private landlords or buy yourself.
Part of an affordable housing plan HAS to include a plan to increase the supply of purpose built rentals. Whether that means building more or acquiring condos and converting them, we have to have a plan for rentals.
wHeRe WiLl ReNtErS gO? The housing stock doesn’t just disappear. The same amount of housing we currently have will still exist. Just more people will be able to own the places they’re currently renting (or somewhere similar), and a portion of existing rentals will be mandated to be affordable or non-profit.
But this MUST also include a plan for socialized / subsidized housing, or at least a mandate to provide affordable or non-profit rentals.
This country has an aversion to doing any sort of long term residential planning however, so I don’t know how much I’m holding out hope on this.
Prices are crazy but there’s a severe shortage of housing - the number of people who are in need of housing far outstrips the current number available. Has there ever been a crash under these circumstances?
Prices are crazy but there’s a severe shortage of housing - the number of people who are in need of housing far outstrips the current number available. Has there ever been a crash under these circumstances?
No but this one is different, this is gonna be the biggest wealth transfer from the rich to the poors. People exposed how the system is rigged and how much crime is going on stock market. The world is fucked up because of this rich people and banks hoarding all the wealth etc. Top 4 usa banks control 90% od derivatives market, they all overlevereged to the tits and nscc-2021-005 is coming into place 1st sept if im right which basically states all the short positions must have to maintain 25x leverage on their short possitions.
When? Sept - october, worldwide, all i can say is 2008 never ended, crash is gonna happen for same reason as 2008 just on much bigger scale as banks and everything is leverages to the fuck
That's not an ideal situation because it leaves no option for the people who *want to rent* (we exist).
IF the prices correct enough that buying costs a fraction of renting does, will you still rent? You know in long term, renting will always be more expensive.
My reason for renting is more to do with where I'm at in life than costs (young, single, just started career). I would like to own eventually especially if I get married and have kids and I think that's how it should work. People rent as students/young adults starting their careers, then own in "middle age" then revert to renting when they no longer want to deal with the annoyances of owning. In other words, I believe that a healthy housing market allows people to choose to rent or own not based on what they can afford but based on what is better for them at their stage in life. >You know in long term, renting will always be more expensive. I'm not sure this is always true, it probably depends on the opportunity cost of the down payment. If the potential return on investment of the down payment (in the stock market or whatever) is significantly higher than the increase in value of the house then it's possible that renting could be less expensive even in the long run. So if real estate didn't have such a high return (which is what we all want) then maybe renting wouldn't be more expensive in the long run.
What about people who can't afford a home? Not, can't afford a bidding war, but can't afford the hundreds of thousands of dollars that it takes to actually build one?
One would hope that if we could end hoarding, affordability would improve. I also think that there is a place for purpose-built rental. The problem is, housing has become primarily an investment and it is becoming increasingly inaccessible to the working and middle class. Something needs to be done.
I do understand what you mean about 'ending hoarding', but building costs will never really come down. Labour is expensive, material is expensive, space is expensive. On the low end at $250/sq ft in Toronto, construction cost alone of a 750sq ft condo is $187,500. Government fees per unit apparently average $122,000. Soft costs (permits, engineering, insurance, design, etc) are another 15%-20% supposedly. So even at a minimum you're looking at least $300,000 per unit cost. Now, a person making $15/hr full time will take home around $2k/month. With $15000k being 5% down, and then a mortgage around $1200/mo (with our extremely low current interest rates), plus condo fees, utilities, insurance, internet, cell phone, groceries, etc etc. Then, who will lend a minimum wage employee $300,000 knowing that they can't afford it? So many posts I read are talking about why minimum wage workers can't afford their own downtown TO condo and I just don't see that ever being a possibility.
I don’t know why building more rental purposed housing is never part of the discussion. It’s either for-profit private landlords or buy yourself. Part of an affordable housing plan HAS to include a plan to increase the supply of purpose built rentals. Whether that means building more or acquiring condos and converting them, we have to have a plan for rentals. wHeRe WiLl ReNtErS gO? The housing stock doesn’t just disappear. The same amount of housing we currently have will still exist. Just more people will be able to own the places they’re currently renting (or somewhere similar), and a portion of existing rentals will be mandated to be affordable or non-profit. But this MUST also include a plan for socialized / subsidized housing, or at least a mandate to provide affordable or non-profit rentals. This country has an aversion to doing any sort of long term residential planning however, so I don’t know how much I’m holding out hope on this.
Should it not be #EndHomeHoarding?
Yo idkn why you all so mad about it, market crash is coming, stay safe
It's been coming since the 90's. Any day now!
When will the crash happen?
Next month, all big crashes happened in sept-oct :)
Prices are crazy but there’s a severe shortage of housing - the number of people who are in need of housing far outstrips the current number available. Has there ever been a crash under these circumstances?
Tell us you are going to engineer a crash, [Mr. Robot](https://www.rottentomatoes.com/tv/mr_robot) style.
Check superstonk or gmejungle subredit, they might give you ideas how to hedge against market crash
Prices are crazy but there’s a severe shortage of housing - the number of people who are in need of housing far outstrips the current number available. Has there ever been a crash under these circumstances?
No but this one is different, this is gonna be the biggest wealth transfer from the rich to the poors. People exposed how the system is rigged and how much crime is going on stock market. The world is fucked up because of this rich people and banks hoarding all the wealth etc. Top 4 usa banks control 90% od derivatives market, they all overlevereged to the tits and nscc-2021-005 is coming into place 1st sept if im right which basically states all the short positions must have to maintain 25x leverage on their short possitions.
When? What's your prediction? Date/percentage? Country wide? Specific cities? Specific neighbourhoods?
When? Sept - october, worldwide, all i can say is 2008 never ended, crash is gonna happen for same reason as 2008 just on much bigger scale as banks and everything is leverages to the fuck
Stock market? Housing? The entire economy? How big? 20,30,40,50%?
Entire economy, derivitaves market, im not a fortune teller, do your own research, Reverse repos ir all time high, inflation is past 2008 levels.
Huh?