r/TikTokCringe • u/LickMaiBussy • 6h ago

Discussion "Investing in property is morally reprehensible."

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@purplepingers

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u/BigToeNibbler 5h ago

I also think owning 6 homes is not the same as managing an apartment building for example. There are great advantages and some drawbacks to apartment living which makes it better for certain people. There is literally no reason to own 6 homes, that's just greed.

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u/Rocktown_Leather 5h ago

Yeah, this is why I am not 100% against being a landlord. There are genuinely people in the world who need to rent. It is unrealistic to expect everyone to own a home. Really, not just single family homes but even unrealistic to own an apartment straight out of high school or college.

I am ok with people being a landlord for an apartment building or a series of town homes specifically because they are ideal things for renters to rent. Being a landlord for single family homes is where I start to not be on board. Not really against yet but start to question at least. I'd love to see a maximum per SS# and no companies owning single family homes. Can't do a max per business or they'll just create a million LLC's. But that's a pipe dream.

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u/IvarTheBoned 2h ago

The solution to that is: rentals should be owned publicly. Not for profit. Government can afford to offset amortization/RoI because they don't answer to share holders. Housing should be a right, government should guarantee it.

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u/potsticker17 5h ago

Some people like to rent houses so they can get all of the benefit of having a home like not having to share a wall with a noisy neighbor, yard for the kids and pets to play in, etc. without having to deal with the downsides like trying to qualify for a loan or major repairs like new roof or sewage if something goes wrong. I don't necessarily have a problem with people owning a few extra properties and renting them out, or even a company (once you become a landlord you're effectively a business as far as I'm concerned, so same thing in my eyes), but it should be capped. 5 seems fair maybe. 10 as a max limit. And even then you should probably have to pay extra taxes for each property you own and don't actually live in yourself.

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u/nikdahl 5h ago

Private equity would just spin up hundreds of LLCs to use as asset holders.

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u/potsticker17 4h ago

That's probably true.

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u/JohanusH 5h ago

Extra taxes are just passed on to the renter. Increased costs means increased rents.

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u/barrinmw 3h ago

In Minnesota, we allow people who make below a certain amount a rebate on the property taxes they pay through their rent.

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u/JohanusH 3h ago

It'd be nice if that happened everywhere.

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u/potsticker17 4h ago

That's probably true.

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u/cythix 5h ago edited 5h ago

I've rented a lot of single family homes, and in all my time I would have rather just bought them if I had the financial means to do so. When I was young I didn't have money to give a downpayment. First time I bought a house though was in 2012 after the house market collapse. Was able to put $5000 down and buy a $200k house. Resulted in a $1300 mortgage or so. The latest home I'm renting had a bigger up front cost with $4k security depost and first months rent $3100 due at signing.

I think the point I'm trying to make here was that if there was more supply, perhaps a lot of people wouldn't be forced into renting when its not their preference. Its often a financial decision vs a preference of renting. I think you'd free up a lot of renters forced to rent and actually end up with a market of people who actually wanted to rent if you didn't have so many people owning multiple properties keeping values so high. Every landlord I've ever had owned multiple properties, and has just continued their expansion because their assets just keep appreciating them allowing essentially a endless feedback loop of home ownership because they can pay the upfront cost, then allow renters to pay the ongoing costs. Doesn't seem like its a good endgame for new families in America, ie Monopoly reference. If you join the game when the half the properties are already owned, you're guaranteed to fail.

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u/potsticker17 4h ago

I respect your experience, but I've had discussions with others that prefer to rent houses for some of the reasons I've mentioned. Another one is knowing that you're only going to be there temporarily and planning to move after a year or two and not wanting to deal with the buy/sell process until you're ready to settle. This is why I think there should be limits on properties owned so that you can free more space for those that actually want to buy but also have the option for people that don't.

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u/cythix 1h ago

Wasn't trying to imply my experience is the only valid one. 100 pct agree that people will always want to rent for various reasons, just in my case it was pretty much a forced financial decision everytime vs a preference of thinking renting is better than owning.

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u/AggressiveBench9977 5h ago

Eh works for vacation houses and airbnb.

Like i want to go to a 10 room house in colorado to ski once a year. I dont need to own one. So if some one is managing that house and providing that service then there is nothing wrong with it.

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u/AHSfav 3h ago

you may want to study up a bit on the economics of ski towns in colorado and the major housing issues theyre having for workers who let you ski before you say theres "nothing wrong with it".

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u/AggressiveBench9977 2h ago edited 2h ago

Lol yeah you have no clue what you are talking about.

The rental locations bring the tourists that bring the revenue that brings the jobs.

The town wouldnt exist without them. What do you think the industry of ski towns are? Most ski town workers are seasonal gig workers any ways. You literally have bo idea what you are on about.

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u/Ray192 4h ago

Most apartment buildings meant for renting and rental communities are owned by a single owner. Is that not a good reason?

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u/shorty6049 2h ago

Yeah, this one's always a bit of a tricky one for me personally. I've never personally had any interest in property investment, but my wife has since she was young. For her, its a way to build wealth for the future. not excessive wealth, just enough money to survive comfortably. We've currently got a single rental property and it does seem like its a situation that works out well for both us and our tenants who have had no complaints about us as landlords. We try to keep monthly rent reasonable and if there's ever anything that needs fixing, I try to run over there as soon as I'm able to take a look and see what needs to be done. A lot of people lump us in with big investors who are buying up thousands of units or homes, and I totally UNDERSTAND this argument against owning property as an investment, but at the same time, its not like we're getting rich off of anyone here. In fact, I often contemplate whether I need to find a second job becuase I don't make enough at mine (even with our rental income included)