854
L.A. County wants to cap rent hikes at 3%. Landlords say that would push them to sell
(www.latimes.com)
this post was submitted on 09 Jun 2024
854 points (98.4% liked)
News
22896 readers
5280 users here now
Welcome to the News community!
Rules:
1. Be civil
Attack the argument, not the person. No racism/sexism/bigotry. Good faith argumentation only. This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban.
2. All posts should contain a source (url) that is as reliable and unbiased as possible and must only contain one link.
Obvious right or left wing sources will be removed at the mods discretion. We have an actively updated blocklist, which you can see here: https://lemmy.world/post/2246130 if you feel like any website is missing, contact the mods. Supporting links can be added in comments or posted seperately but not to the post body.
3. No bots, spam or self-promotion.
Only approved bots, which follow the guidelines for bots set by the instance, are allowed.
4. Post titles should be the same as the article used as source.
Posts which titles don’t match the source won’t be removed, but the autoMod will notify you, and if your title misrepresents the original article, the post will be deleted. If the site changed their headline, the bot might still contact you, just ignore it, we won’t delete your post.
5. Only recent news is allowed.
Posts must be news from the most recent 30 days.
6. All posts must be news articles.
No opinion pieces, Listicles, editorials or celebrity gossip is allowed. All posts will be judged on a case-by-case basis.
7. No duplicate posts.
If a source you used was already posted by someone else, the autoMod will leave a message. Please remove your post if the autoMod is correct. If the post that matches your post is very old, we refer you to rule 5.
8. Misinformation is prohibited.
Misinformation / propaganda is strictly prohibited. Any comment or post containing or linking to misinformation will be removed. If you feel that your post has been removed in error, credible sources must be provided.
9. No link shorteners.
The auto mod will contact you if a link shortener is detected, please delete your post if they are right.
10. Don't copy entire article in your post body
For copyright reasons, you are not allowed to copy an entire article into your post body. This is an instance wide rule, that is strictly enforced in this community.
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
In LA County, looks like the median home price is $1M. The proceeds of such a sell, combined with presumed other typical sources of retirement income and social security should provide for an above-average retirement lifestyle.
I'm not talking about LA county, which this article is about, but just the general idea that every landlord can just go and get a job.
Also, 1 million only lets you take out a maximum of $40,000 per year safely which is not above average. Social security? Is that still $900 a month? That's way below the median income in LA county even when added together.
You're also assuming the mortgage is completely paid off
Considering the proposal is only about LA county, figure I'd use that, but we can consider things either way.
I would expect that whatever means had the retiree have both a home and at least another property left them with other typical sources of passive income. So in aggregate, I would expect social security, with retirement savings, plus the value of the house produces an overall viable income.
Whether the mortgage is paid off or not is immaterial unless they are somehow "upside down" on it. If the mortgage is not paid off, then selling it also removes the mortgage payment.
But let's say that it is unreasonable to sell, maybe somehow the person has all of their money tied up in the property and can't sell the property for an amount to get enough passive income. This measure would not force her to sell, it simply caps her rental income increase to 3% a year. Her property value may go up, but that doesn't make her mortgage go up (if she even has one). County assessments would make her tax bill increase some, though generally a pittance. Even if you are concerned about the tax bill, you could have some clause that assessments or property tax for people with rental properties is similarly capped if the owner is subject to a rental income cap. In most contexts, the ability to guarantee oneself a 3% a year raise would be pretty respectable.
The retirement savings is what she used to buy the property, so the property IS the retirement savings
3% a year is fine, but only when the inflation is below 3%. If this affected my mom when the inflation was 10%, then of course it wouldn't pay for her increased costs of living