633
'This is egregious': Sisters shocked when Toronto landlord raises rent to $9,500 a month
(toronto.ctvnews.ca)
this post was submitted on 06 Sep 2023
633 points (96.9% liked)
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If not for landlords who would suck all supply?
I wouldn't be renting. Landlords solely exist to make profit, not to serve anyone.
You replied to wrong comment
You mean you'd pay the same amount for a house as a landlord pays? But you can do that now, why don't you?
Has nobody ever informed you that growing demand leads to price growth only if supply grows slower? But if prices grow, then supply does also grow faster. These are feedback loops.
Which means that what a house costs now it would cost still, after a short transient process.
"Suck all supply", my ass. You mean that you'd buy that house for 1/10 of what the landlord has paid for it, because it'd just be there, like a mushroom after rain? It wouldn't get built, dummy, cause it wouldn't be worth the money.
Except highers supply doesn't bring prices to same level.
The only reason prices are 10 times bigger is because landlords ready to pay those prices.
Bad, bad, very bad boy.
Hahahahahhaaha. I'm not sure if you really think that way or only pretending.
If there are no artificial limitations to supply, and no demand growth, it eventually will. Eventually as in time of regulation.
They are ready to pay those prices because their tenants are ready to pay the prices they, in turn, offer. Which means that they don't inflate demand.
You are illiterate in economics. I really don't get why do you think putting "laugh" in text would negate that.
The only reason their tennats are "ready" to pay the prices is exactly because corporate landlords bought everything. AKA sucked the supply.
We are talking about 100x profit vs 10x profit for developers.
Since we're throwing numbers around, give me your best guess as to the cost of building an apartment block, per unit. Ignore the cost of land for now.
I'm curious to see if you're going to notice a problem with your logic or not.
Abooout 50-150kβ½/mΒ² of unit area or 0.5-1.5k$ depending on local labour cost, cost of materials in that area, building height and other stuff.
EDIT: found mention that Yaroslavl Department of Building says it costs 48kβ½/mΒ² of some area(need to look in source). If it is cost of buiding entire building per total area(roof in not added), then per unit it would be around 58kβ½/mΒ² of unit. To buy unit after being built it would be around 150-500β½/mΒ².
OK, maybe I was too quick to judge. See, in my country most landlords own 1-3 apartments which they rent out. That includes new construction. The idea of "corporate landlords" is not very common here.
If there's no way a person willing to be such a 1-3 apartments' landlord can buy realty to rent out in USA - then you may be right.
If there is, then my position doesn't change.
You are saying that rent a landlord collects from an apartment in 10 years (you may make it 5 years or 20 years, should be the span of time in which landlord's investment should return) is 10x the price for which the landlord buys it? That is, what you pay to a landlord in 1 year is the cost of the apartment plus utilities plus decoration plus furniture? I suspect this is not true.
Cost of apartment if landlord would not participate in bidding. For person it would be 10%, not 100%.
It wouldn't, because a landlord proxies tenants' bidding.
It's funny, I had some course (or maybe it was after class activity) for one year called don't remember what in school (2 different things, one kinda economics, one kinda sociology), we'd basically roleplay political systems and economic systems.
It'd give you the correct answer very quickly. Only you need a group of 20+ who are not all friends (like in a class).
If not for someone to buy from developers would there be a supply?
If not for scalpers to buy tickets from LiveNation would there even be concerts?
Unironically no. Or, at the very least, the organisers of the concerts themselves would have to be the badguy charging giant ticket prices themselves. LiveNation is just a professional scapegoat.
I guess tickets going to connected people rather than rich and/or highly motivated people would be an option too, if artists could get funding other ways. Lots of societies have worked that way in the past; the Colosseum was free but you had to be invited.
Fundamentally there's just less seats than people who would show up if it was cheap and open to anyone. Maybe you could build a bigger venue, if geometry allows, but then somebody has to pay for that too, and we're back to real estate.
They are talking about scalpers, not the company selling the tickets.
Landlords are like scalpers: they go in and buy up the supply, so they can resell (rent out) for a higher price.
The people originally doing the selling (artists in the case of scalpers. Developers in the case of landlords) see nothing of the increased price.
So what prevents you from buying directly from developers?
Landlords(scalpers)
So you are saying they are some secret club, and without joining it you can't buy a house for the same price a landlord does?
You're aggressively missing the point. It's it a mental health issue, or are you being deliberately obtuse?
You're the only one being aggressive in this thread ; I'm being deliberately insensitive to worthless arguments and emotions from worthless people. OK, now you are not the only one anymore, maybe.
You are the one responsible for carrying through your own point. Your failure to do that is not my problem.
https://en.m.wikipedia.org/wiki/Bad_faith
This is the most illogical and flat-out wring thing I've seen in a while.
That's damn impressive, in its own stupid way.
No u? There is only so many seats in a venue, and you have to exclude someone, that's just mathematical. If I erred somewhere else point it out.
So you are saying if not fo scalpers, then organizers would charge the same? And why organizers aren't charging same anyway?
Technically they could charge more. Clearly the market is willing to pay more, else scalpers could not exist. But it would require more work by the organizer to get the tickets sold, and that extra work would not necessarily be worth the added payoff. Organizers have way better things to do than to spend their days trying to look high and low for someone wanting to buy a ticket. It is beneficial to just get tickets sold as fast as possible, even if at a discount, and move on to more useful work. Those who have nothing else going on in life can justifiably spend their time looking high and low and capture the difference for their efforts.
Because there is only so much time in the day. Same reason middlemen appear in essentially every industry known to man. They let people doing important things get back to doing important things rather than waste their time dealing with people.
As I've heard it explained, LiveNation gives a big commission to the organisers to resell their tickets, to the point where they're really just taking a cut for reselling it under a different name, for marketing purposes. I guess the existence of the old-style in-person scalpers kind of undermines that, I honestly never really understood how those guys existed.
In-person reselling sometimes has legit reasons like person can't or don't want to participate anymore. But in that case people are ready to sell under nominal price.