Post
Topic
Board Bitcoin Discussion
Re: Roast this Masterplan.
by
20kevin20
on 24/02/2021, 11:03:38 UTC
"....during recessions a lot of people will lose money and have no more budget for rentals."
Then where are they going to live? RV's? Their cars? Like we have a homeless problem sure, but if people go into debt for one thing consistently, it's housing.
There are solutions to that. When you are in a financial crisis and have no more money to afford rent, what do you do? Would you rather die of hunger or find a better solution? They'd probably move to the cheapest rental they can find, or with their family (parents/grandparents). Or maybe they simply go homeless. But this is the wrong thing you are thinking about: what do you do in that case?

What happens if you're in the middle of a recession and the people currently renting your property will not be able to pay you anymore? If you kick them out, how do you find someone else quick enough to rent your property so that you can still afford to pay for the loan?

If during a crisis people lose something consistently, it's real estate properties. During the 2008 crisis, a quite significant percent of the people I currently know lost their properties, which is quite sad. Remember that rents usually go down during a recession, so if the people currently renting your place are kicked out, chances are you'll end up earning a smaller rent.. hence probably having to take money out of your own pocket to pay for the debt. Even if they stay in your property, you will probably have to lower the rent so that you don't lose them. Rents go down, but the monthly sum you now owe to the bank doesn't.

Theoretically, if a lot of people are losing their homes then there are going to be a lot more people interested in renting your place. However, if a lot of people are losing their homes then you're under the exact same risk yourself.