Rent Control in Massachusetts

PennyPincher

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I am completely against rent control. The govt wants cheap housing, they can buy it, maintain it, etc.

But to say you're not making any money? Equity?
Equity is not guaranteed. Ask all of us who bought while the market was high (or on the way up) and then the market crashed and other things can force you to have to sell then. Equity is only good when you are ready to sell. If you need to sell and are negative or zero equity after 11 years, things suck. I'm so tired of people here in Dallas, who really didn't have a housing market surge in mid-late 2000s and thus didn't experience the crash (2008 or so) like other places did, tell me "you can;t ever lose money buying a house!"
 

peterk123

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This would have a devastating effect on the market and property owners. We are seeing some of the lowest cap rates in history, meaning investors are paying absolute top dollar for residential apartments. Those values are based on the income generated. If you cap the rents then all those investors go bankrupt. It would also topple every bank, especially the community banks, in a nano second.

But hey, math never matters to a liberal.
 
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How about sewer fees for lawn irrigation? [rofl]
If your municipality allows for it, put in a reduction meter. My parents put one in a few years back, when they had the irrigation system installed. For about $700 installed, it's probably saved them at least that much each year in sewer costs.
 

RHJJ

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This would have a devastating effect on the market and property owners. We are seeing some of the lowest cap rates in history, meaning investors are paying absolute top dollar for residential apartments. Those values are based on the income generated. If you cap the rents then all those investors go bankrupt. It would also topple every bank, especially the community banks, in a nano second.

But hey, math never matters to a liberal.
They will convert them to condos
 

drgrant

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This would have a devastating effect on the market and property owners. We are seeing some of the lowest cap rates in history, meaning investors are paying absolute top dollar for residential apartments. Those values are based on the income generated. If you cap the rents then all those investors go bankrupt. It would also topple every bank, especially the community banks, in a nano second.

But hey, math never matters to a liberal.
My guess is it would not be retroactive even if it were, the worst effect is it would cause investors to stop building.... and in turn drive up prices on the non controlled property even further....
 
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I can sympathize with them even if their solution is wrong. It's sucks to be priced out of the neighborhood you grew up in and move away from your job, friends and family. It sucks even more when you get priced out by rich college kids, hipsters and yuppies who only live here for a year and move on.

The city raises property taxes, guess what? Landlords are going to pass that right on to their tenants. Why should Landlords eat that especially if they're just normal people? And let's bring in more refugees, immigrants and students and act like that won't drive up rents.
 

xjma99

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Heard this on the way home. One of the Activists claimed "Housing is a basic human right."
Everything that they think that the .gov should give to everyone for free is now a ‘basic human right!’ No, you’re lucky you grew up enjoying the fruits of other peoples labor for free, now it’s time for you to participate and pull your weight, or drown trying!!
 
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Rent control won't work even with failed past history but what does history know. The problem with real estate it's like a pyramid ponzi scheme it will allow those who buy cheap to sell high and those who buy high realize they can't pay and lose.

When only the ultra rich can afford to live within the area the workers won't be able to and will find a way to live away from it all. They will take work at less money because it will still leave them with more money in their pocket than commuting long distances for little pay. Buy a house on Martha's Vineyard and see what it costs to hire tradesmen part of the fee charged is to pay their rent while they stay there.
 

Yazz

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Make the section 8 housing in motels go on rent control and that will put an end to it.
 

Broccoli Iglesias

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These people are a bunch of morons. If they cant find a rental today, they won't find one when there is rent control, no one will be moving.

Also, rent control leads to ineficienciencies. You get one person in a 2 or 3 bedroom apartment.

Rent control leads to landlords caring less.

A lot of these people will also get kicked out of their homes when the landlord decides to sell and they wont find another place because all the rent controlled places will be taken.
 
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When I lived in Boston to go to college, the person I rented the shithole apartment from was some divorced woman who owned 3 apartment units that she rented out. She herself lived in rent controlled housing, probably a really nice one too. I find that ironic for some reason. $600 a month for a cockroach infested gross shithole 190sf apartment that she refused to repair or fix up nice. She could have lived in that.
 

Rob Boudrie

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I’ll sell my multi then. I’m not making any money with it as it is. Was hoping to use it for retirement some day
You realize it will be instantly devalued if rent control passed.
A lot of these people will also get kicked out of their homes when the landlord decides to sell and they wont find another place because all the rent controlled places will be taken.
Some rent control laws give the tenants the perpetual right to stay, and don't even allow conversion to owner occupied.
The city raises property taxes, guess what? Landlords are going to pass that right on to their tenants.
Leases sometimes contain property tax escalation clauses that allow for an immediate, mid-lease, increase in the amount of the tax hike.
 
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Rob Boudrie

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Equity is not guaranteed.
I owned a 4 family is Rochester, NY in the early 80s. 4 units was the cutoff for commercial (translation: Multiply residential city taxes by 2.42) and the 4 families had been assessed using what amounted to a de-facto capitalization assessment for many years. The city went to full value assessment on the fours, taxes about doubled over night, and the values plummeted. The city stuck to the position that the taxable value was the value before they devalued the property, and you had to wait until the next revaluation to argue the market declined. The city attorney told me directly "We have been looking for ways to take more money from you investors".

I paid $135K; sold it for $127K and that buyer eventually sold it for $90K.

I've been looking at places in Rockport (second place), but the market seems to be sliding and it is hard to tell the real value. When units sell within 90+% of listing or more, you can get an idea of valuation. Nowdays, it's typical to see listing times over 100 days for Rockport properties and price reductions in the $50K - $100K range. I'm probably going to wait until things seem a bit more stable, because I doubt they will bottom and then immediately skyrocket.
 
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calsdad

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Basic economics, supply vs demand.

Exactly.

If the stupid lefties want rents to go down - the answer is simple.

Stop importing so many people into the state. Supply and demand will send the rents plummeting. Detroit is a good example - you can buy a house for what - about $500?
 

67ray

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I've been looking at places in Rockport (second place), but the market seems to be sliding and it is hard to tell the real value. When units sell within 90+% of listing or more, you can get an idea of valuation. Nowdays, it's typical to see listing times over 100 days for Rockport properties and price reductions in the $50K - $100K range. I'm probably going to wait until things seem a bit more stable, because I doubt they will bottom and then immediately skyrocket.
Yes, and Rockport properties start at ~$500k and go up to $2M - so $50-100k down isn't much on a percentage basis depending on the listing price. But, the market has really softened in late 2019.
 

GaryO

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Rent control is definitely not an answer. That said I just left an apartment that was ~1,200 square feet that costed around $3,500. How thats a thing I don't know.
Christ! My home is 1600 sq ft. and in a desirable location and my mortgage is way cheaper. Maybe my wife and I should get a cheap mobile home and rent this place out.
 

Dench

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Christ! My home is 1600 sq ft. and in a desirable location and my mortgage is way cheaper. Maybe my wife and I should get a cheap mobile home and rent this place out.
I think my house is ~2k sq ft and significantly under this property's rent. it's insane.

I bought my house JUST in time. My homes value has grown over 35% in the past 6 years.
 
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