It is insanity indeed!
One needs a fulltime career just to accommodate
a modicum of basic human requirements; shelter, food, good health.
Then another fulltime gig ancillary to the aforementioned, just to maintain
a vehicle, and other accoutrements necessary for a decent existence!!
now incredibly surpassed that of the exorbitant New York City! Bay Area residents are actually renting out their walk-in closets to people whom can
only afford the miniscule space, to the tune of around $1800/month!!
I only wish I was kidding! Somethings' gotta give!!?? Angelina Jones
"Inamorata"
My lease is coming up and they want 25% more than 18 months ago. Anyone else experience that?
The leasing agent raised the rent at my business 33%...IT SUCKED... what could I do?
I'm too old for this shit...retirement is in site.....maybe
It is insanity indeed!
One needs a fulltime career just to accommodate
a modicum of basic human requirements; shelter, food, good health.
Then another fulltime gig ancillary to the aforementioned, just to maintain
a vehicle, and other accoutrements necessary for a decent existence!!
Try residing in the San Francisco Bay Area, where rents/mortgages have
now incredibly surpassed that of the exorbitant New York City!
Bay Area residents are actually renting out their walk-in closets to people whom can
only afford the miniscule space, to the tune of around $1800/month!!
I only wish I was kidding!
Somethings' gotta give!!??
Angelina Jones
"Inamorata"
Or something like that annually
I suggest looking into that because it's not lawful to hike rent over a certain percent
Any lawyers or property managers able to chime in?
...as much as the landlord thinks the market will bear at the end of the lease period.
However, a tenant in San Diego does have protection against evictions. The landlord must have one of the reasons enumerated in the San Diego Municipal Code:
http://docs.sandiego.gov/municode/MuniCodeChapter09/Ch09Art08Division07.pdf
Of course, a landlord can just raise the rent until the tenant is forced to move..
But tenants are getting active and are moving towards getting rent control enacted in San Diego:
http://www.sandiegouniontribune.com/business/real-estate/sd-fi-rent-control-20160920-story.html
All about supply and demand as usual.
Real estate pricing and stock market has been going up for the past few years since the interests rates are so low. In a investors perspective is is not worth putting the money in the bank so they turn to faster growing investments. Plus there is a shortage in housing in San Diego. Those two things has brought up the rents quickly.
I use to rent and I just was ready to buy last year and I did not see the rent increase coming. Just out of luck I moved out at the right time.
The rents are NOT reasonable in a renters perspective. For the investor on the other hand that paid a high price for the properties will get a very small margin the first few years and need to charge as much as possible.
I have a rental and getting another one. The margins are scary low, but for a long term investment and with a possible rent increase it will become a good investment.
So in order to be able to be prepared for future larger maintenance issues I do need to keep increasing the rents so I can afford larger unforeseen expenses.
I really feel for the issue and I agree it is out of control but I am not in a position to lower rents. I wish it was different. There are so many people who work so hard and can not afford anything. It is tough to live in San Diego.
xo Jessica
I think you're right, Jessica. It's the historically low interest rates that are fueling this housing market. Unfortunately, these rates are artificially low thanks to the Fed. Inevitably, rates will rise. I'm afraid of what will happen if they once again rise above 10%.
I use to rent and I just was ready to buy last year and I did not see the rent increase coming. Just out of luck I moved out at the right time.
The rents are NOT reasonable in a renters perspective. For the investor on the other hand that paid a high price for the properties will get a very small margin the first few years and need to charge as much as possible.
I have a rental and getting another one. The margins are scary low, but for a long term investment and with a possible rent increase it will become a good investment.
So in order to be able to be prepared for future larger maintenance issues I do need to keep increasing the rents so I can afford larger unforeseen expenses.
I really feel for the issue and I agree it is out of control but I am not in a position to lower rents. I wish it was different. There are so many people who work so hard and can not afford anything. It is tough to live in San Diego.
xo Jessica
You will not have to worry about higher interest rates for a while. If the rates go up then the national debt can not be paid, not even the interest rates on their huge loans. Government wants to increase the interest rate so they have a "tool" to use to control the market. At the moment that tool is unusable due to historically low interest rates. But they are stuck in a corner. They tried to raise the interest rates in Dec and the stock market tanked in January. What probably stopped that crash from going further was company owners and government buying back stocks to stop pricing to drop further. They will not be brave enough to try to hike the rates unless they are prepared for a crash.
In Europe the interest rates are negative and that has never happened before so there are no way of telling how that will turn out exactly.
Normally fusing the economy with "free" money that the low interest rates leads to, would spark the economy to do better but it has the opposite effect because the "free" money is not going to where it is needed. It goes to the people who already have money/the investors. These people will not spend the money, they will invest it. So that is why we see a uppgoing stock- and real estate market. That leads to pumped up pricing i.e. bubble.
What would work is to give money to people who does not have any. They will spend the money. So if the well fare system or increase the pensions then that money will be spent, and consumption would go up. They would not invest it in stocks or real estate. But that is a socialist way of looking at it and it will not be accepted by a capitalist country like USA.
The government are ready for another round of quantative easing (printing money). That would lead to a bigger bubble and only kicking the can down the road (moving the problem ahead/not dealing with the real issue). Some people are talking about helicopter money and that would actually be a better solution because some of the money will end up in the hands of people who needs the money for consumption. But some of it won´t. So best is to put the money in the hands of people who has nothing. They will buy diapers for their kids, new tires, pay bills etc. That will lead to new jobs etc etc.
In Sweden for instance they could increase the interest rates but the economy is more of a macro- than a micro economy so Sweden can not act on it´s own like they could years ago. If a single country has much higher interest rates then that will lead higher costs for investments and lead to higher product costs and lead to worse economy due to lower comparable rates in other countries. So the countries can not act on it´s own and are depending on the rest of the worlds economy. Same for USA if they like to start an increase.
Historically USA triggered a better economy by using debt to get production and economy to rise. But debt is a loan that has to be paid back. When it is owed for a longer time that debt is becoming a burden and that is what is happening all over the world. So almost everyone is in debt.
It is like when you can use your credit card to get something temporarily. But when you use multiple credit cards and they are not paid back quickly you feel tied down instead. Same scenario with national debts that are high for a longer time. It acts as surpressing instead of new opportunities for the economy.
So this crash is kind of needed in order to start from the beginning with real growth not based on debt. The problem is now not being solved only postponed until no one can do anything to stop it from crashing down.
China is a country who lend money or invested in USA but they can not get their money back quickly. If they did ask for a majority of it back they would exchange it for yen and that would lead to a dramatically low dollar and their remaining money they lend USA will decrease in value due to a huge off sell in dollar to yen so the dollar will be decreased dramatically. So China will not be able to ask for their money back any time soon.
So everyone is stuck in a corner until it all comes crashing down and that is when real growth can happen without the help of global debt.
So my conclusion is...the interest rates will not possibly going up until the big crash has happened
You get most of the rest of your facts right, but it's pretty plain to anyone who knows anything about financial matters that simply copying facts that you read on the internet doesn't mean you have any basic understanding of those facts.
Have you ever heard the saying "you know just enough to be dangerous"??? I can't think of a better way to comment about your post.
I'd say she's more informed than 99.9% of the providers in San Diego. Do you expect her to be an expert in this field? A Ph.D in Economics, perhaps?
Anyway, you brought up interesting points, Jessica. Universal income being one that I see gaining a lot traction in the future.
You could be correct in that the next big crash could happen suddenly. The crash in 07/08 happened seemingly overnight due to the very artificial inflation that caused the mess. Looking at interest rates in the sub 4% range with as little as a 5% down payment is frightening to me. It doesn't make sense in this economy, other than for artificial reasons like you mentioned.
Thanks for seeing some of the points. I thought everyone was quite aware of the financial risks that are overhanging right now.
I saw there is 552,9 trillion dollars invested in derivatives contracts in USA. The national debt in USA is 18,8 trillion dollars. The entire economy of goods and services of the WORLD is 78 trillion dollars per year.
The American banks has invested large money in the derivatives that are supposed to be related to estimated value of economic worth, i.e value of mortgages, silver, oil etc etc. But the derivatives are blown up to 7 times the entire worth of ALL services and goods in the WORLD per year. That is a GIANT bubble.
So it is basically like buying a stock or a house for 7 times it´s worth. The bigger that distance gets between price and REAL value the BIGGER the bubble,
Most of the larger banks has a income of single trillion digits (1-2 trillion dollars) but invested close to 50 trillion EACH in derivatives.
There is no way the national bank can bail out the banks THIS time!
So hold on to your hats this time...
It is easy to be critical. What is your economical theory? Let´s see what you have to say without just being critical about someones post...
By the way I have no extensive economical education but I do have a logical mind and a M.Sc in Materials Engineering. I am more of a socialist so I do not think you would applaud my post since we are a USA.
I do not really care if you agree or not. I am not dependent on you agreeing or disagreeing so you can write what ever you feel is accurate to you.
But, I have seen the stock market go up and down since the 1990 and I traded daily during several years. I do see that people have the cheep mentally. They all run for that door at the same time.
So an independent mind is important to be able to think clearly and not be the last one running for that door...
Good luck!
Have you ever heard the saying "you know just enough to be dangerous"??? I can't think of a better way to comment about your post.
Or how about those wonderful Jimmy Carter years when rates soared to about 20%!!!
Our younger members weren't around for that, but the rest of us will recall them
Actually it started before Carter. It started with the Nixon administration and was not helped by the wage and price controls he initiated.
Our younger members weren't around for that, but the rest of us will recall them.
Increases
Your landlord can't raise your rent if you have a lease for more than 30 days unless the lease terms allow it. If you have a periodic lease, your landlord can raise the rent as long as she gives you proper notice. A periodic lease says when the rent is due, such as every three weeks, but doesn't have a listed duration.
Notice
Your landlord must give you 30 days' notice of a rent hike if your lease is periodic and month-to-month or less. You're entitled to 30 days' notice if the increase is 10 percent or less and 60 days' notice if it's over 10 percent for other lease types. Your landlord must use the lowest rent you paid over the last 12 months. For example, if your rent was $400 eight months ago but your landlord raised it to $450 six months ago and it's going up to $475, you get 60 days' notice. The increase from $400 to $475 is around an 18 percent raise.
Hope this helps.
PS. I am a landlord with 4 homes. I rarely raise the rent unless the tenant moves out. Might be a reason why I have great tenants who really take care of the place
I live in a complex owned by the Irvine Company. They give the proper notice and price the rent to force you into a longer-term lease.
Something is about to give. SD has one of the highest rent/median income ratios in the country. Almost 50%!
As long as there is demand for these rentals and people are paying it, rent/median income won't really matter. No different than when guys bitch about pricing for the ladies. If somebody is paying it, u won't see a reduction.
And if something is unsustainable it will eventually stop.
Have massively distorted the markets and reinflated asset bubbles. They used debt to try to fix a debt problem. This is not going to end well.
When these bubbles pop it's going to be spectacular to watch. 2008 was nothin...
Holding cash may not even help you at that point.