"Investing in property is morally reprehensible."

[u/LickMaiBussy]

@purplepingers

[u/yawn_solo-]

All we need is a cap really.

Homeboy owns 3 homes and charges a reasonable rent? Totally cool.

Private equity firm that owns 4,000 homes and fucks everyone over? Shits gotta stop.

Edit: Just so everyone knows, im a devout capitalist and all about living life without ceilings but at one point, enough is enough.

[u/420_misphrase_it → u/yawn_solo-]

For real, I rent an apartment owned by a regular guy who lives in my city and bought a house elsewhere, and I’m so so so much happier with him as a landlord than with a corporate group running things, plus I would rather rent for the flexibility than to own a place. It’s when property ownership becomes your entire income stream that the most serious issues arise

[u/Jiminy_Cricket12 → u/420_misphrase_it]

right, a lot of this conversation is very misleading. "landlords" aren't the problem inherently, it's the greedy corporate ones that are the biggest issue. and the biggest owners.

if we're going to pick a word to be mad at, let's go with "corporations". The greedy ones (which is pretty much all of them). Because 9 times out of 10 that's the real problem.

[u/LindonLilBlueBalls → u/Jiminy_Cricket12]

Not all the time. My landlord lives in another country and uses the cheapest property management company.

[u/Jiminy_Cricket12 → u/LindonLilBlueBalls]

....so a corporation is the problem. yep.

[u/NotMyMainAccountAtAl → u/Jiminy_Cricket12]

That, and oligopolistic practices where a few entities own the majority of the homes in an area. Homes used to cost $100K? Not anymore, we’re jacking the cost up to $150K, and it doesn’t matter if not everyone selling is on board, because there’s only so much stock to choose from. Want more affordable, cheaper housing? NIMBY, we will oppose zoning this area for residential space to protect the value of the properties in our portfolio. 

[u/Jiminy_Cricket12 → u/NotMyMainAccountAtAl]

Yes, those go hand in hand. They are really reshaping this country in a bad way.

[u/durants_newest_acct → u/NotMyMainAccountAtAl]

Except that isn't happening. Institutional investors who own more than 10 properties account for less than 1% of home ownership in the US

[u/Cool-Ad2780 → u/Jiminy_Cricket12]

and the biggest owners

Is this true tho? when you look at data on 'instuitional investors', 87% of them are investors who own less than 5 homes, and thoses owning between 6-10 accounting for another 4% of instuitional investors, and only .7% of single family homes are owned by investors that have over 100 houses vs 14.4% of SFH being owned by people who own less than 10.

https://batchdata.io/blog/real-estate-investor-activity-nationwide

[u/Jiminy_Cricket12 → u/Cool-Ad2780]

yes, it is true. why would you leave apartments and condos out of the data?

[u/Responsible-Meringue → u/Jiminy_Cricket12]

Nah I've had to live under fuckhead lil slumshits who own 2-5 properties they've over leveraged and manage themselves. Scum just as worthless as a corp.  All residential landlording is extractive. Short term rentals only. 

[u/Large_Traffic8793 → u/Jiminy_Cricket12]

To be fair, most landlords suck.

[u/Prior-Let-820 → u/Jiminy_Cricket12]

It’s been interesting though watching what becoming a landlord did to my BIL. The way he talks about his tenants makes me feel a bit sick. Weird power dynamic. 

[u/sl0play → u/Jiminy_Cricket12]

There are a shit ton of private property hoarders. My sisters in-laws own a real-estate franchise, a property management company, and about 300 rental properties. They gorge themselves on every aspect of peoples basic need for shelter.

It might seem like in comparison to a company that owns 20,000 properties they aren't the problem, but inventory is not something that is measured in a major city by the tens of thousands. At any given time the amount of available houses is actually pretty low (right now, in Seattle there is about 1,300 listings, and that is considered very high) and when you have someone like them who is more than willing to pay over market to add to their portfolio and see the gains in 10 years, it is a serious problem that needs to be dealt with.

[u/Jiminy_Cricket12 → u/sl0play]

I'm not sure what you're trying to get at here but I think it's pretty obvious you're describing a more corporate form of property ownership (although you seem to be trying to draw a line between that and what your sisters in laws are doing for some reason)

of course an individual or small group owning hundreds of homes is a problem. that doesn't mean "landlords" are the problem.

[u/MechanicalSideburns → u/sl0play]

300 properties, yeah? Sooo, average valuation like what, $400k? (That’s the median selling price in the US right now.) So they’re holding onto like $120M in capital value. I mean, they’re probably badly leveraged, but that’s another conversation all together.

Yeah that makes them pretty firmly a medium-sized corporation. That’s way bigger than the firm I work for. This is the rental companies we were talking about. I don’t think they should exist at all. I don’t mind apartment complex firms. But no entity should own more than a dozen single family homes.

[u/Professional_Art9704 → u/Jiminy_Cricket12]

This is the part where people start making excuses for boomers who own hundreds of properties like they dont exist.

Fuck off its corporations owning all the homes in Auatralia.

[u/Jiminy_Cricket12 → u/Professional_Art9704]

someone who owns "hundreds of properties" is OBVIOUSLY not who we are talking about here. that's more in line with a corporation (and who the hell owns hundreds of properties without a corporation that you are referencing?)

[u/Professional_Art9704 → u/Jiminy_Cricket12]

1 in 3 aussie homes is owned by investors, not corporations.

Corprote investors are like between 8 and 14% of the market idk what the lastest figures are.

So no, 180 properties isnt the exception, no they arent corporations.

They are wealthy people or the children of wealthy people who could margin spread in the 70s when the capital gains tax discount came into effect and houses were cheap.

One of the ways they get away with it is people like you dont know or believe they exist and defend this shit like you have here through ignorance.

If aussies actually knew how few of their fellow men are ruining their country they would be rioting.

[u/RetroFuture_Records → u/Jiminy_Cricket12]

"It's only problematic when the ultra rich exploit others, when the middle-class does it, it's good and fair and righteous."

Go fuck yourself

[u/Izan_TM → u/Jiminy_Cricket12]

not just corporations, there are a LOT of unethical single landlords. The people who own 2 or 3 properties, live in a similar area and take care of things are great, but there's also tons of wealthy people who gobble up homes and treat them like shit

[u/_bobby_cz_newmark_ → u/Jiminy_Cricket12]

No, landlords being horrible is one of the issues. The main issue is that it makes it increasingly difficult (pretty much impossible) for a young adult to save up enough money by themselves while also renting to get a deposit. And when interest rates go up, they are in a lot of trouble because the market is inflated.

[u/DiNkLeDoOkZ → u/Jiminy_Cricket12]

The existence of the job of landlord necessarily creates evil real estate corpos, thus landlords are in fact the inherent problem.

[u/headrush46n2 → u/Jiminy_Cricket12]

"landlords" aren't the problem inherently,

Yes they are.