Loan interest payments are absolutely not something that should be converted by rent - you just take someones labour to pay for something in order for you to eventually own it.
Same with taxes - both on rent profit and real estate itself.
Maintenance, insurance, electricity, water, etc tenants cover, bcs that is the thing they are using & costing landlords. And those things are absolutely not 6%~12% (as average re yield) of the real estate price. Its just profit from labor transferred to non-productive factors.
So people should just pay a tiny fraction of the cost of home ownership to rent somewhere? If that were the case, only the absolutely most wealthy people could afford to own and rent places out. It wouldn’t make sense for anyone else to buy it, and those ultra wealthy would be the only ones profiting.
Loan interest payments are absolutely not something that should be converted by rent - you just take someones labour to pay for something in order for you to eventually own it.
Same with taxes - both on rent profit and real estate itself.
Maintenance, insurance, electricity, water, etc tenants cover, bcs that is the thing they are using & costing landlords. And those things are absolutely not 6%~12% (as average re yield) of the real estate price. Its just profit from labor transferred to non-productive factors.
So people should just pay a tiny fraction of the cost of home ownership to rent somewhere? If that were the case, only the absolutely most wealthy people could afford to own and rent places out. It wouldn’t make sense for anyone else to buy it, and those ultra wealthy would be the only ones profiting.