My kneejerk reaction is not to landlords. It’s to “there should be a law”
If you implement this, people will be living long term in hostels in 6 people dorms because the landlords are not required to live in them.
I suggest reading Freakonomics, it explains how similar laws created perverse incentives in the real world
That would encourage investors to buy up property to build hotels on it, increasing residential prices by decreasing supply
It comes from owning an investment. The stock market has similar returns to the real estate market.
But the real estate market doesn’t need to keep going up. For example, after the increase in supply of housing in Austin, the prices are down 16% off the 2022 peak
If this could be replicated for the whole country, it would improve the situation immediately.
I don’t understand the law you’re proposing. Would it apply to hotels? Do you need to live in the hotel you own? Apartment building? Hot spring resort? Ski lodge?
Return on investment. Not everyone has money to buy a house. Home prices being high keeps rents high. Increase housing supply and it will resolve the issue
My mom is too old to wash dishes in a restaurant, it’s really hard labor and she has carpal tunnel. She tried, it’s just not something a 60+ year old person is fit to do. So she can’t just sit on that money and do hard labor on the side. But drawing some plans and hiring contractors while painting some walls on her own time is something she can do
Landlords follow market pricing, so if there’s enough housing the prices go down. Landlords are not the reason rent is high
Then you should support less zoning restrictions and lower development fees to increase the availability of housing.
She spends the same amount of money as you do, she just doesn’t plan on dying in a decade.
She’s the one who hired contractors. You need someone who decides what work needs to be done, find the people who are qualified, and pay them.
Not all contractors do good work, she got scammed once by a guy who does crap labor and tries to upcharge to fix it. It happens
Even if she sold the houses, the person buying them would probably want a return on their investment and end up renting it out to people
The only way rent would be cheap is if there was a lot of supply of it, less restrictions on building like zoning, fewer fees on developers.
That’s why I thought she should just buy stocks and live off dividends instead. I mean, any investment has a rate of return or people would not buy it
She had a few hundred K, she needs to make that divorce settlement last until she retires. Social Security is absolutely nothing
My mom is the landlord and remodeling houses IS her work. She was a stay at home mom until I grew up, that’s what she does for a living after she divorced my dad. She lives on the rent of her properties while she does each project
Remodeling a house and maintaining it is actual work
It’s not so simple, my mom purchased a property with her divorce settlement and the return on the investment can be good, but it can also be not as good. She remodeled an Oregon property in Salem and sold it for less than cost later. While she did get rent for it before she sold, she could have saved a lot of effort just buying dividend stocks.
Real estate can be a good investment, but it can be a poor one.
Why is my hypothetical disqualifying? A lot of people actually use their houses as hotels, it’s called air bnb. It’s pretty profitable to use the property like that
If you include the hostel owners to live in them, they will be converted into hotels that don’t have that requirement. That’s not my argument. My argument is permanent residents will be forced to live in hotels as apartment buildings get converted by their current owners who can’t possibly live in all of their properties at the same time