this post was submitted on 11 Jan 2024
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[–] [email protected] -1 points 10 months ago (1 children)

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.

[–] [email protected] 0 points 10 months ago (1 children)

This isn't relevant to the meme at all though.

Also if your asking me to feel bad for someone trying to make a profit off acting as a middleman to a basic human need you're barking up the wrong tree.

[–] [email protected] 0 points 10 months ago (2 children)

Remodeling a house and maintaining it is actual work

[–] [email protected] 0 points 9 months ago (1 children)

Then charge for work done on the house like any contractor would, instead of rent for simply owning any old plot.

[–] [email protected] -1 points 9 months ago (1 children)

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.

[–] [email protected] 1 points 9 months ago (1 children)

Look one of my siblings is doing the same thing. I'm happy I don't have to worry about them financially, but I'm not going to say I wouldn't prefer they made an honest living

[–] [email protected] -1 points 9 months ago

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

[–] [email protected] 0 points 10 months ago (1 children)

Then let the people who actually need to work there do it.

[–] [email protected] 0 points 10 months ago (1 children)

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

[–] [email protected] 0 points 10 months ago (1 children)

She lives on the rent of her properties

This is exactly the thing people have issues with. The whole "I am the breadwinner of my landlord's household."

[–] [email protected] 0 points 10 months ago (1 children)

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

[–] [email protected] 0 points 10 months ago (1 children)

Yup, and housing shouldn't be an investment. It can be affordable, or an investment, not both.

[–] [email protected] 0 points 9 months ago (1 children)

Then you should support less zoning restrictions and lower development fees to increase the availability of housing.

[–] [email protected] 0 points 9 months ago (1 children)

I do? But I also support laws that heavily tax owning secondary properties. Building more houses is not helpful if they just get purchased by landlords.

[–] [email protected] -1 points 9 months ago (1 children)

Landlords follow market pricing, so if there's enough housing the prices go down. Landlords are not the reason rent is high

[–] [email protected] 0 points 9 months ago (1 children)

Landlords are not the reason rent is high

If being a landlord is profitable where do you think that profit comes from? Logically landlord's need to be making housing more expensive so they can get their cut.

[–] [email protected] -1 points 9 months ago (1 children)

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

[–] [email protected] 0 points 9 months ago (1 children)

And where does this return on investment come from?

To put it another way: if a law was passed that owning a property you don't live on is going to become illegal, there would suddenly be a lot of cheap property on the market.

[–] [email protected] -1 points 9 months ago

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?