Housing Bubble 2: Return of the Ugly

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A community for discussing and documenting the second great housing bubble.

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SeattleRain

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A mother of three says her family can't secure a $1,600 home loan, yet they must manage a $2,100 rent. (www.reddit.com)

submitted 5 months ago by SeattleRain to c/housing_bubble_2

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[–] [email protected] -2 points 5 months ago (1 children)

You are correct. That's why the rent is more expensive, if you buy a house and rent it for exactly your mortgage payment you will lose money due to all those things.

If x is mortgage and y is the average cost of all that stuff then x + y = z where z is the break even point. Now most places make a profit which we will call a. Z + A = rent payment. A lot of people compare rent to X and not Z. Now is A excessive sometimes/usually yes... But rent should always be higher than mortgage to take into account Y.

[–] NotMyOldRedditName 4 points 5 months ago* (last edited 5 months ago)

I hate when people say they are 'losing' money if the rent doesn't cover the mortgage / taxes.

No bitch, you're getting $2k a month outta me thats going into your equity. If you gotta chip in $500 to get my $2k you aren't losing $500 a month.

Edit: just to clarify, I'm not saying they shouldn't charge more, but fuck the losing money narrative if rent control or something else changes the situation.