Its a valid argument but discounted when the general public has a high enough financial literacy to budget for “unexpected” expected expenses it’s not really unexpected when you’re 25 year old roof leaks or your 10 year old water heater fails.
The idea that rental property is historically a safe investment is the mentality that reinforces the speculative inflationary cycle that real estate is experiencing. Housing as an investment instead of a basic right is a failure capitalism has burdened us with in the sense we can’t correct it properly without ruining the equity of every homeowner unwittingly complicit in ownership.
It’s true supply and demand cause inflationary pressure on property but it doesn’t include perspective on what drives the demand. Huge influxes of immigration to fill gaps in the labour market primarily exploited by companies offering minimum wage creating a class of workers doomed to be reliant on the rental market or pool resources to purchase a property… the amount of homes I see with multiple families or extended family or rooms rented in these communities is a whole different can of worms but that’s the point of the universal income rant it sounds good in a vacuum but there are too many variables that it doesn’t account for
Sure, but to some extent you could say the same about any necessity. Groceries, clothing, healthcare, etc… Then we could extend that to the things that are required for those necessities, transportion, natural resources, sections of the labour market, etc… Maybe housing does actually have a larger gap between input costs and market rate, and it’s probably the single largest expense for most and particularly those at the lower end of the income scale so it’s good place to start making changes.
If we trusted most people to manage their budgets we wouldn’t need things like EI and CPP, people would just be setting aside enough to cover that. People also need time to build those emergency or planned upgrade funds so telling someone who’s only been on their own to make sure they have enough se aside to cover a major repair isn’t very practical.
Agreed it is a huge bag of worms and financial literacy in the form of education is the only meaningful prescription.
Just important to acknowledge our systemic shortcomings rather than frame our situation as one where land lords add any real value to the equation. They profit off of other persons ignorance. Which is fine when that’s your choice and simplicity is valued but when it becomes the default because housing for an entire generation has been over levered and over financialized to the point it’s out of reach for most without a privileged start.
Sorry if my passion plays tone deaf I just can’t drink the business as usual coo-laid at this point 😅
Its a valid argument but discounted when the general public has a high enough financial literacy to budget for “unexpected” expected expenses it’s not really unexpected when you’re 25 year old roof leaks or your 10 year old water heater fails.
The idea that rental property is historically a safe investment is the mentality that reinforces the speculative inflationary cycle that real estate is experiencing. Housing as an investment instead of a basic right is a failure capitalism has burdened us with in the sense we can’t correct it properly without ruining the equity of every homeowner unwittingly complicit in ownership.
It’s true supply and demand cause inflationary pressure on property but it doesn’t include perspective on what drives the demand. Huge influxes of immigration to fill gaps in the labour market primarily exploited by companies offering minimum wage creating a class of workers doomed to be reliant on the rental market or pool resources to purchase a property… the amount of homes I see with multiple families or extended family or rooms rented in these communities is a whole different can of worms but that’s the point of the universal income rant it sounds good in a vacuum but there are too many variables that it doesn’t account for
Sure, but to some extent you could say the same about any necessity. Groceries, clothing, healthcare, etc… Then we could extend that to the things that are required for those necessities, transportion, natural resources, sections of the labour market, etc… Maybe housing does actually have a larger gap between input costs and market rate, and it’s probably the single largest expense for most and particularly those at the lower end of the income scale so it’s good place to start making changes.
If we trusted most people to manage their budgets we wouldn’t need things like EI and CPP, people would just be setting aside enough to cover that. People also need time to build those emergency or planned upgrade funds so telling someone who’s only been on their own to make sure they have enough se aside to cover a major repair isn’t very practical.
Agreed it is a huge bag of worms and financial literacy in the form of education is the only meaningful prescription.
Just important to acknowledge our systemic shortcomings rather than frame our situation as one where land lords add any real value to the equation. They profit off of other persons ignorance. Which is fine when that’s your choice and simplicity is valued but when it becomes the default because housing for an entire generation has been over levered and over financialized to the point it’s out of reach for most without a privileged start.
Sorry if my passion plays tone deaf I just can’t drink the business as usual coo-laid at this point 😅