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movingtobay2019 t1_iw0risd wrote

Reply to comment by NetQuarterLatte in New York City Is Failing Tenants. So They’re Getting Organized by ethnt

So what happens when said long term tenant wants to move after 10 years before fully owning the home they rent?

Or what happens when the long term tenant has essentially bought out the LL (which is what you are implying if a long term renter can own the home they rent) and wants to move?

What price would they put the unit on market for if there is no wealth accumulation (price increase)?

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SolitaryMarmot t1_iw0wq6w wrote

You can have equity in an asset even if it's not 100% equity.

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movingtobay2019 t1_iw1dxbe wrote

And what do you think happens if that asset never goes up in value and charges you interest and taxes every year? Do you think your wealth is going up or down?

And more importantly, who is going to invest to build this in the first place if the value never goes up? It's like asking people to invest their 401k in an asset with 0 growth.

You guys are living in a fantasy.

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SolitaryMarmot t1_iw1eq7u wrote

What makes you think the asset wouldn't appreciate. I mean...there's a years long waiting list to buy places in Penn South and the Mitchell Lama buildings

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movingtobay2019 t1_iw1eyys wrote

Because I am responding to someone who thinks an asset can both create wealth and be affordable. The only way an asset can be affordable is for it to not appreciate.

If you want homes to be affordable, you can't have a system that treats it as an asset that goes up in value.

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NetQuarterLatte t1_iw2edye wrote

You’re too fixated on the market price.

Market price is just a measure of wealth, and an incomplete one.

Owning a home over the long term which you can enjoy is by itself wealth.

Get people a fixed 30-year rate so that they can buy their home over a long period of time, rather than paying rent without accumulating any equity.

We had a whole decade to do move a ton of long-term tenants into homeownership for very cheap and missed the boat. Next time the interest rates come down, we should be prepared for that.

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