If the property is giving you any kind of return, you’re extracting profit, so the property is less “affordable” than it would be if the resident owned it.
SuiXi3D@fedia.io 21 hours ago
Unless you are by extension making those properties affordable for whomever is leasing or renting, then absolutely it is, yes.
scarabic@lemmy.world 11 hours ago
TranquilTurbulence@lemmy.zip 6 hours ago
It’s a bit more complicated than that though. Most people can’t buy a property, because they don’t have enough money. In order to go around that problem, they either borrow money or rent the property. Either way, some extra money always goes somewhere.
Some of it is justified, because you need to go around the problem not having enough money to buy a house. However, there are many cases where that extra expense is absolute wild and rooted in greed.
Actually, if you happen to own the property, some extra money will go to periodic maintenance and miscellaneous expenses you never even think of if you just rent the place. You just don’t pay for those things every month a little bit at a time. Instead, you pay a large bill once a year or an enormous bill every 10 years.
scarabic@lemmy.world 5 hours ago
I’ve been a landlord and I know how it works. The liquidity problem you mention is real, but so is rent seeking. Landlords may help make housing available, but they absolutely do not help make it affordable. Quite the opposite.
Think about payday loans services. They help make money more available, but they make it as expensive as they can. No one believes they are providing a valued service.
It’s possible to offer loans and rental housing at really reasonable rates, but that’s not what we have in our society. Investors and the wealthy buy up all the property, creating scarcity, this causes a price bubble which shuts out many buyers who get priced out. Then the renting begins, and I don’t know what it’s like where you live, but I couldn’t afford to rent the house I own.
AmidFuror@fedia.io 19 hours ago
You can make them affordable by screening for high income.