Even the stopped conservative clock is right twice a day.
OK VG. Whatâs the average effective interest rate that renting folks pay via their rent? What information would we need to calculate it? Serious question.
I donât think you canât really get the relevant info for apartments because thereâs no really good info on owned âapartmentsâ and be comparing apples to apples, but the average home price in the US is about $230k and the average home rent is about $1500 which means about 8% interest rate. The average rental is probably smaller and less valuable than the average house though, so the rate should probably be adjusted up a fair bit.
Something to think aboutâŚ
Itâs much harder generally for a bank to âevictâ a âhomeownerâ but mortgage interest rates are still quite low.
Of course this doesnât take landlord expenses into account which means adjusting down.
We donât need an exact number, we just need an estimate.
Your estimate is way off however. What you have forgotten to figure in is the useful lifespan of the building. Or the car for that matter.
ETA: We avoid the apples-vs-oranges thingee by not doing that. We can compare freeholder SFR -vs- rented SFR. We can compare owner-occupied condo units -vs- rental condo units.
Comparing it to cc debt and from the POV of the renter that seems more relevant. Lifespan is essentially infinite.
The useful lifespan of a car doesnât seem relevant. The payments are amortized (I guessâŚIâve never borrowed for a car). The interest is charged on the debt. A tenant pays no principle.
Also how is the useful life of a building relevant from a tenants POV? The term of the lease maybe.
Yeah, maybe thatâs available. You just donât want to mix apartments with rental condos.
SMH.
- An asset has a useful lifespan of L years.
- To be sustainable, a sinking fund or equivalent, needs to be maintained to replace that asset at the end of L years.
- To maintain an the asset, ongoing expenses are required.
Over that L years, freeholding will cost $X, leasing will cost $X+$Y. Take that Y and L, plug it into the Meaning of Life⢠and we got our answer.
ETA: another mistake you were making was confusing the effective interest rate on the asset itself -vs- the effective interest rate to borrow $$$ to buy the asset instead. This is why not having access to credit is so devastating to working folk.
IF a notice of termination was served and expired before March 27th, 2020 and IF the Residential Tenancies Board has issued a Determination Order in support of the termination, you can be evicted. And all RTB hearings (required for a D.O.) are suspended. There certainly were evictions in Dublin. Presently, there are not.
How many more posts until someone comes in here and claims Sabo is adding a really valuable perspective with this type of bullshit
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Man, Iâve heard if landlords canât evict, theyâll form gangs of home invasion robbers, and (continue to) extort and terrorize civil society? How is your new Mad Max world treating you?
Iâve also heard the housing stock will âshrinkâ without evictions. How many sqft (or rods per fortnight, or what you folks measure with) in your home have you lost so far do to this this âshrinkageâ. Are the neighbors getting farther away?
O/U five.
ETA: Iâm taking this line down. Iâm going to 5 posts myself.
Honestly, the neighbours have been eyeing the property up a bit lately. I heard their wallpaperâs peeling and they have no incentive to maintain the property. I think those bar-stewards are planning on making a move!!1!
LOL @ them. Iâm moving into the bar.
Probably less than itâll take for someone to bemoan the lack of answers to unasked questions. Iâd say it was all very Zen, but Buddhists arenât really noted for moaning.
If you ignore land and assume a house lasts 100 years and you amortize $230k and have a payment of $1500 you get about 8%.
Seems like all those lawnmowers that I sent into orbit were on target.
No. Try harder. Do this⌠stop trying to plug numbers in right away. Figure it out with the X,Y,Z first. After we get the formula, weâre going to want to try out different sets of numbers anyways⌠but we need to get the formula first.
Sherlock Holmes on the fuckinâ case here, boys.