Is you have interest rate floors, that would raise the lending interest rate and kill off some people from purchasing a house. Would kinda defeat some of what you are aiming for.
Housing market
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In a way, this kind of already exists, as loans for investment properties are higher than mortgages.
But if you put an investment interest rate floor, that would raise the mortgage and investment property rate.
I’m guessing they rent it out. She hasn’t used it for 15 years. Her siblings thought it would be great if they moved it to theirs and my wife’s name and trade use every 3 years. I said you want no part of that. Let them have it by themselves. She was u sure, then her rich friend told her on a walk that they are awful deals and avoid it, so she turned it down. Not sure if the siblings took it or not.
Those things are like STDs. You can’t get rid of them.
They’re kind of like boats. You want to know someone who owns one, not be the one who owns it.
My in-laws bought one in the 90s in Orlando. Their idea was they would use it to take their kids to Disney, which they did. Once we were grown, we got 3 disney trips out of that thing where we didn’t pay anything for the condo.
However, they were quite surprised last year when they tried to gift it to us and we said no f’ing way. Even though we wouldn’t have to pay the original $10k investment, it was still like $1200 a year for maintenance fees. So, the financials didn’t make sense even then.
They were able to go through a lawyer (more money) and get out of it. I figure they paid $10k plus $1000ish a year for 20+ years, plus the cost of unloading it.
MIL one is in Branson. You get points and can go elsewhere. My wife got into the site when this was going on (siblings didn’t know since she found the info at her moms once) and checked out the options. The time availability was sketchy at other areas and you were confined to where they had other timeshares. It limited your vacay options. Sealed the deal even more.
I was hoping they would take it so it wouldn’t get inherited. Her bro is the type who would not take it, let his mom pay, and just use it since the MIL physically can’t use it.
Raise property taxes on non-primary homes. Or, maybe just raise all rates and offset with higher homestead credits would be easier to manage?
Or do it through zoning. Define a rental as a commercial property to restrict it to be used as a rental.
There are things a community can do if they want. But they have to acknowledge the problem and the leaders can't be so cozy with the landlords.
Okay, let's think about this, who really pays the property taxes on rental properties. Raise the property tax and guess what happens to the rental rate.
This is true assuming the landlord is charging based on expenses + a set profit. But we are often seeing the rent cost based solely on what the market will bear and have no relation to the expenses. Raising expenses would mean a higher rent only if someone will pay it. And if they were willing to pay more, why wouldn't the landlord just raise rent anyways?
To put it another way, did you see rent go down when the interest rates went down?
I don't rent anymore, but do know as taxes and insurance went up, so did my rent. My landlords had the houses paid for so interest rates were irrelevant for my situation.
Part of what sets rental rates also is good old supply and demand. That is what can cause wild swings, the smaller annual increases generally are from taxes and insurance (or other things like garbage collection) increases.
I’m confused why are you all trying to make it more expensive for landlords again? Landlords provide a very important service, they keep people that can’t buy homes from being homeless.
That's fine for apartment complexes. But for small investors who buy single family homes only to rent out, that's what were talking about.
In smaller Iowa towns 5-10k or less, many of the rentals are houses since apartments don't fit more than senior housing or subsidized housing. A beginning family that doesn't have a down payment saved up doesnt fit into either of those and would need to change towns to find an apartment.
So people that rent houses don’t deserve to live in single-family homes they must be forced to live in the apartment complexes? This is kind of ridiculous.
Not me, but generally the conversation lately in this thread is that because of investors buying single family homes, it's taking opportunities away from families from owning as opposed to renting.