The system is broken

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My mom is the landlord and remodeling houses IS her work. She was a stay at home mom until I grew up, that's what she does for a living after she divorced my dad. She lives on the rent of her properties while she does each project
- She lives on the rent of her properties
  This is exactly the thing people have issues with. The whole "I am the breadwinner of my landlord's household."
  
  That's why I thought she should just buy stocks and live off dividends instead. I mean, any investment has a rate of return or people would not buy it
  
  Yup, and housing shouldn't be an investment. It can be affordable, or an investment, not both.
  
  Then you should support less zoning restrictions and lower development fees to increase the availability of housing.
  
  I do? But I also support laws that heavily tax owning secondary properties. Building more houses is not helpful if they just get purchased by landlords.
  
  Landlords follow market pricing, so if there's enough housing the prices go down. Landlords are not the reason rent is high
  
  Landlords are not the reason rent is high
  If being a landlord is profitable where do you think that profit comes from? Logically landlord's need to be making housing more expensive so they can get their cut.
  
  Return on investment. Not everyone has money to buy a house. Home prices being high keeps rents high. Increase housing supply and it will resolve the issue
  
  And where does this return on investment come from?
  To put it another way: if a law was passed that owning a property you don't live on is going to become illegal, there would suddenly be a lot of cheap property on the market.
  
  It comes from owning an investment. The stock market has similar returns to the real estate market.
  But the real estate market doesn't need to keep going up. For example, after the increase in supply of housing in Austin, the prices are down 16% off the 2022 peak
  If this could be replicated for the whole country, it would improve the situation immediately.
  I don't understand the law you're proposing. Would it apply to hotels? Do you need to live in the hotel you own? Apartment building? Hot spring resort? Ski lodge?

264 comments