Quote:
Originally Posted by Blease
Why not just let the markets take care of the rental crunch??? Government regulations usually do a piss poor job of stuff like this.
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I don't entirely disagree in concept but the problem with markets taking care of themselves is that if history is any tell, they tend to build up and then explode to correct. There's very little "minor" or "medium" corrections in a market driven economy.
So if we let the markets take care of the rental crunch, it is very likely we'll see real-estate and the overall market crash like down in Arizona and other parts of the US during the credit crunch.
With respect to Government regulations, in practice, they often do do a piss poor job of stuff like this but I feel it is only because the decisions are knee jerk and made by politicians who either don't fully understand the complex variables at work, or they believe the electorate doesn't fully understand so for "being voted in next cycle" sakes they again turn to quick fixes or no fixes.
I do believe though that Government, especially municipal government, can make good decisions with respect to land use and regulations that nudge an area in the right direction. I'm not saying there should be NO condo development for example, but we already know what happens when absolutely NO _0_ purpose built rental only housing is built in a city.
We've seen the results of this stance over the last 20 years and it is a lot larger a factor I feel in creating the crazy real estate market we have today than over-seas investors. And I get the irony of me saying this, a multi-home owner who rents out extra units to pay my mortgage and who would likely compete with these rent-only buildings.
I don't think it would hurt to have certain areas in the metro-cores designated rental only. It would force condo owners to compete and lower their prices through increased competition, and quite honestly that to me sounds like a free market. Isn't one of the foundations of a free market society, competition?
Anyway this is probably not the thread for this discussion, feel free to PM me if you want to discuss further.