Actually, it's more about the roadblocks to getting approved for a mortgage. I used to pay $1200 a month in rent. So in theory, I should have been able to afford $1200 mortgage a month. Nope. The algorithm the mortgage providers used said I could only afford $100 a month mortgage, because of my student loans and other existing financial obligations, even though I had a substantial down payment and great credit. I think they've gotten really picky after the previous crash.
But much of the rent increases are due to what local boroughs are doing. I have to pay my tenants water/sewer bull and in January will have to pay their quarterly trash bill. The landords have to either go after the tenant to recoup what they have forked out, or they simply have raised the rent $150 a month to cover the cost. And that doesn't factor in repairs that always go beyond the down-payment. We have to factor in those costs too, because renters are brutal to the rental unit. And I was just notified about a new rental inspection rule that will cost me $150 per unit to apply, register and allow them to come in to inspect. There's another $15 increase.
My tenants are a month behind. They are trying to get caught up after a job change that then didn't pan out with hours and being unable to cover a 30 mile commute with the gas prices. We'll work with them and hope they get up up by tax return time in January. And our rent is $1300 for a 3BR house with yard and driveway and allows pets.
If one can afford $2000 a month in rent, one can probably afford to purchase a home...the kicker is probably accumulating sufficient down payment.
Nearly impossible when paying $2000.00 a month in rent...
New York rent comparison: What $7,000/month gets you right now
https://ny.curbed.com/2017/8/22/16181564/new-york-rent-midtown-tribeca-carroll-gardens-comparison
Actually, it's more about the roadblocks to getting approved for a mortgage. I used to pay $1200 a month in rent. So in theory, I should have been able to afford $1200 mortgage a month. Nope. The algorithm the mortgage providers used said I could only afford $100 a month mortgage, because of my student loans and other existing financial obligations, even though I had a substantial down payment and great credit. I think they've gotten really picky after the previous crash.
This was back in 2017, btw.
But much of the rent increases are due to what local boroughs are doing. I have to pay my tenants water/sewer bull and in January will have to pay their quarterly trash bill. The landords have to either go after the tenant to recoup what they have forked out, or they simply have raised the rent $150 a month to cover the cost. And that doesn't factor in repairs that always go beyond the down-payment. We have to factor in those costs too, because renters are brutal to the rental unit. And I was just notified about a new rental inspection rule that will cost me $150 per unit to apply, register and allow them to come in to inspect. There's another $15 increase.
...I have too hot of a temper to ever play the landlord/renter game....
My tenants are a month behind. They are trying to get caught up after a job change that then didn't pan out with hours and being unable to cover a 30 mile commute with the gas prices. We'll work with them and hope they get up up by tax return time in January. And our rent is $1300 for a 3BR house with yard and driveway and allows pets.
Has been for several years now….
https://youtu.be/79KzZ0YqLvo
...exactly....