Correct. Grocery stores do not provide food. They instead provide a service, moving and storing food until such time as you buy it. They are a buffer, a cache in the food transportion network.
Farmers produce food.
Landlords do not produce or provide housing. Construction workers, plumbers, electricians, etc provide housing.
That same logic applies to landlords though. They don’t provide housing, they provide a service. They provided the capital for the construction workers, plumbers, electricians, etc.
Insurance and taxes are forced as part of typical mortgage payments because otherwise people wouldn’t pay them. Coordinating repairs and hiring out those jobs is also part of the service.
Part of the problem is that rent is more expensive than a mortgage. Another problem is that a majority of rentals are owned by corporations that cartel to have ever increasing rental rates. Rent increases aren’t tied to anything except they can raise the price on a whim.
If you mortgaged $200k at 3% in 2020 you had a house note of $850. That same house would require a $350k mortgage at 7.5% is $1400. The landlord has the same house note on the same property but is charging rent like they just bought the house last week.
They don’t provide housing, they provide a service.
Owning isn’t a service.
They provided the capital for the construction workers, plumbers, electricians, etc.
No, the bank did that when they gave the landlord a mortgage.
Coordinating repairs and hiring out those jobs is also part of the service.
That’s a property manager, not a landlord. Nine times out of ten, that property management is being handled by a low level worker, while the rich company owner owns everything and extracts the wealth for themselves.
Another problem is that a majority of rentals are owned by corporations that cartel to have ever increasing rental rates. Rent increases aren’t tied to anything except they can raise the price on a whim.
Correct. Grocery stores do not provide food. They instead provide a service, moving and storing food until such time as you buy it. They are a buffer, a cache in the food transportion network.
Farmers produce food.
Landlords do not produce or provide housing. Construction workers, plumbers, electricians, etc provide housing.
That same logic applies to landlords though. They don’t provide housing, they provide a service. They provided the capital for the construction workers, plumbers, electricians, etc.
Insurance and taxes are forced as part of typical mortgage payments because otherwise people wouldn’t pay them. Coordinating repairs and hiring out those jobs is also part of the service.
Part of the problem is that rent is more expensive than a mortgage. Another problem is that a majority of rentals are owned by corporations that cartel to have ever increasing rental rates. Rent increases aren’t tied to anything except they can raise the price on a whim.
If you mortgaged $200k at 3% in 2020 you had a house note of $850. That same house would require a $350k mortgage at 7.5% is $1400. The landlord has the same house note on the same property but is charging rent like they just bought the house last week.
Owning isn’t a service.
No, the bank did that when they gave the landlord a mortgage.
That’s a property manager, not a landlord. Nine times out of ten, that property management is being handled by a low level worker, while the rich company owner owns everything and extracts the wealth for themselves.
Exactly, they’re leeches.