• Adalast@lemmy.world
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    1 year ago

    God, I want to become a mayor or governor or something so I can push a rule through that says only 5% of single-family properties in any jurisdiction are allowed to be rentals, and landlords have to purchase what amounts to “tokens” from the city that are priced inverse proportionally to the ratio of tenant income to rent to be able to keep the rental. Also, wage discrimination is not allowed. If a potential tenant comes forward with proof, the landleech has to prove that they did not discriminate or they will not be allowed to purchase tokens the next year.

    Idk, something. Some limitations on the number that any individual can hold in a city and punish them for overcharging.

    • There’s something to this. Sounds like taxi medallions.

      I would settle for a law requiring owners of rental properties to be residents of the same state so they can be properly hauled into court when they break laws.

    • phoneymouse@lemmy.world
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      1 year ago

      No renting at all? Why buy a home then? You’re just setting yourself up to become trapped in a bad situation. If you don’t have the flexibility to rent out your property when you get a new job somewhere else, or lose your job and can’t cover the mortgage, then you’ll either be foreclosed on or forced to sell possibly at a loss. Remember, when you buy a property, you are immediately under water due to selling costs of 6-8% of the property’s value.

      Let’s picture this scenario:

      1. You buy a house for $300,000
      2. You lose your job a month later and cannot afford the mortgage. Your options are:
      • sell your house, which will cost $24,000 in selling costs (seller/buyer agent fees), and since your property was bought only a month ago, you don’t have any equity and would have to sell at a loss. Since you lost your job, you have no more money to lose.
      • wait for the bank foreclose on you
      • try to hang on to the property by renting it out until you can get back on your feet

      If renting isn’t an option, this rule would create a lot of problems for people. The solution isn’t to regulate what people do with their own property more, but to build more housing supply. Your idea would disincentive building housing because it can’t be rented unless you’re in that special 5%.

      Edit: Guaranteed everyone downvoting me has never owned a property and has not a clue what the stakes are.