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wateroverfire posted:A rent control scheme that allowed a landlord to charge enough to cover taxes, maintenance and a return on invested capital with an allowance for a vacancy rate would probably be less distorting than otherwise. OTOH, arguing with the rate board would probably be a PITA and the landlord would be have to be making less than they could in an unregulated development or else what's the point of the rent control scheme? On the third hand, it would probably suck for property owners who have lived in the neighborhood for generations and want to cash out by either selling or renting their buildings by forcing down both rents and property values. On the fourth hand, effective rent control is guaranteed to create demand for grey market subletting that whoever is renting a unit at the time the measure goes through will be able to take advantage of. I love how almost your entire post is listing how rent control is bad for landlords, which is basically the entire point of rent control.
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Oct 16, 2014 18:06
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| # ¿ May 9, 2024 00:06 |
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New York can build more units vertical in Manhattan and is doing that, the problem is it's all luxury apartment nobody can afford and those who can won't live there.
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Oct 16, 2014 21:18
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Ardennes posted:I think those apartments eventually are bought, but the land their own is super costly. So either the government absorbs that cost or it is just going to be expensive by default. Well they're already giving the luxury developers tax breaks to build there.
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Oct 16, 2014 21:33
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tsa posted:Landlords are like anyone else, they need to make a profit from taking risk or there is no point to taking risk. Do you expect your credit cards to not charge you interest? Does your bank give you loans for free? Look at all the silly things Islamic Banking does to get around the restrictions on it- not even god can stop it apparently. Likewise it is trivial to loophole around rent control, hence why it has never worked. Bad analogy. Credit cards, like landlords, often go way beyond simply making profit into actively loving people over as hard as they can, and seldom do either merit my sympathy.
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Oct 16, 2014 22:18
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GhostofJohnMuir posted:I'm not super familiar with the specifics of Prop 13, but doesn't it freeze taxes for the rich on the business side of things? I thought there was an issue with business using shady practices when transferring ownership of real estate to keep the prices super low. Of course that still doesn't change the fact that the poor get nothing out of it. Yeah Prop 13 also covers commercial real estate so you have stuff like golf courses paying tiny levels of tax, and businesses change ownership less obviously and often than private residences. The "grandma's gonna lose her beach house" stuff is mostly getting the less rich riled up. The poor pay for the hosed up tax structure in CA through regressive fees and sales taxes.
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Oct 16, 2014 22:30
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| # ¿ May 9, 2024 00:06 |
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Yeah if you're going to do new construction with the insane land prices in LA, there's no sense shooting for middle income. The market is not going to provide for anyone but the rich.
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Oct 22, 2014 21:10
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