Is Economy Doing Well?

[normando]

A contractor friend is saying he's having hard time finding subcontractors. He has the work but lacked the help.

 

[Randolph Kinney]

A contractor friend is saying he's having hard time finding subcontractors. He has the work but lacked the help.

Hire illegals.

 

[normando]

From my experience with trying to get maximum rents, there are several types of tenants who can afford it. One is those who don't want to buy a home with good credit which is not common and will move in few years. Then there are multiple people who can share the rent to keep it affordable. And then there are Section 8 which government subsidizes. Good long term tenants are hard to find and I willing to give them a break to stay.

 

[Randolph Kinney]

Your the landlord, it's your choice.

Just remember, once rent control goes into effect, there will be investors that will sell their rental homes.

What do you think that will do?

 

[normando]

Government interference has contribute to the rise in rents. Zoning in one of most expensive zip codes prohibit multiunit construction so no affordable housing. Cities putting tax on new projects or setting aside certain number of units for low income thus pushing available units for sale to pay premium prices to pay for project. San Francisco forcing water conservation changes on buildings and recycling mandates while fattening bureaucratic agencies. Building permits charging fees per sqft development. During good times, government imposes additional costs to developers and owners, thereby increasing cost of housing. In a way, current property owners are happy with government help in pushing prices higher.

 

[Randolph Kinney]

Wait until the investors sell their rental houses.

Who will the buyers be? Other investors? Paying higher prices?

 

[Artemis Fowl]

Good long term tenants are hard to find and I willing to give them a break to stay.

See a lot of rent rolls. When interviewing, often find that the lower rents are for that very reason.

 

[normando]

When I go to rental homes for appraisals and meeting the nice people and seeing how clean the place is, I appreciate those kinds of tenants. They're keepers. And you're right, their rents are generally below market. However, you do not want to be too low. Otherwise, they think they're entitle to low rents.

 

[Elliott]

The economy is barely growing at 1%. The demand for rental housing doesn't determine how well the economy is doing, its more a function of supply and demand for rental housing. Eventually your rise in rent will increase GDP, but if the tenants only have a fixed number of dollar and have less to spend on food, clothing, and other goods and services, then GDP will remain pretty much the same. : )

 

[Restrain]

Wages are essentially flat and have been. Housing costs, utility costs food costs all are going up. Any economists (the Fed, etc) that says the e onomy is doing good hasn't stepped foot outside of the Wall Street ivory tower.