tag:blogger.com,1999:blog-6234866741387164003.post1426689699717106392..comments2023-10-19T04:44:25.725-07:00Comments on World Housing Bubble - China, Australia, Vancouver Real Estate News: How Many Canadian Households Own Without A Mortgage?GGhttp://www.blogger.com/profile/14963284253203737587noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6234866741387164003.post-65265673661135190502011-05-26T23:15:41.145-07:002011-05-26T23:15:41.145-07:00"those other costs are built into the rent&qu...<i>"those other costs are built into the rent"</i><br /><br />Yes that's the point: if you're a homeowner you pay yourself plus take on the risk of major events that a renter does not. Normally a renter pays for this by funding future capital costs but these days it's the opposite: the owner who bought at high prices is in effect funding the tenant by taking on unfunded liabilities that can only be funded by having prices appreciate since the revenues are so low. Let's put it this way: how many landlords do you think have an accruing capital account, how many throw capital cost allowances into general revenue, and how many even bother to show depreciation on both sides of the line?<br /><br />The "rent push" argument is not valid IMO, simply because in total renters cannot afford significantly higher rents, nor do they have to due to competition from other landlords. We know this is generally true because rents are not increasing quickly, even in jurisdictions with rental caps (where rents are increasing less than the maximum allowable).jessehttps://www.blogger.com/profile/02155122147972263497noreply@blogger.comtag:blogger.com,1999:blog-6234866741387164003.post-12511611743567439992011-05-25T13:05:41.024-07:002011-05-25T13:05:41.024-07:00True. Taxes and upkeep are forms of rent. But I wo...True. Taxes and upkeep are forms of rent. But I would argue you pay those no matter what, even if you are renting from a landlord those other costs are built into the rent. Unless your landlord is some kind of charity or is a clueless accidental landlord. <br /><br />I suppose the main difference is the risk of a large repair bill is spread out across multiple units/renters in the typical renter scenario. Whereas a single homeowner with no mortgage runs the risk of a large outlay of maintenance rent. (Renting from nature, I'd call it, given the susceptibility of the materials we are using.)GGhttps://www.blogger.com/profile/14963284253203737587noreply@blogger.comtag:blogger.com,1999:blog-6234866741387164003.post-47154461203118148472011-05-19T22:14:04.149-07:002011-05-19T22:14:04.149-07:00"mortgage free/rent free"
Speaking from..."mortgage free/rent free"<br /><br />Speaking from experience, owning property is not "free". You may not pay rent to a landlord or a bank but there are taxes, ongoing maintenance, and eventual capital replenishment that are effectively forms of rent.jessehttps://www.blogger.com/profile/02155122147972263497noreply@blogger.comtag:blogger.com,1999:blog-6234866741387164003.post-84996944386286824952011-05-19T22:10:32.367-07:002011-05-19T22:10:32.367-07:0021% of people without mortgages have HELOCs? Someo...21% of people without mortgages have HELOCs? Someone needs to google "disingenuous".jessehttps://www.blogger.com/profile/02155122147972263497noreply@blogger.com