• AFK BRB Chocolate@lemmy.world
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    1 year ago

    they can afford the rent, so they would also He able to afford the mortgage for it if given the chance.

    Have you purchased a house? Because this part is simply not true. You have to have a percentage of the cost up front. The more you have, the smaller the payments. Lots of folks who are renting out places put a lot down so the mortgage payments (and what they charge for rent) are much smaller than a first-time buyer can afford. Then you have the cost of property tax, maintenance, and repairs that the renter isn’t liable for.

    • ConfuzedAZ@lemmy.world
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      1 year ago

      This is very much the problem with the Canadian real estate bubble. People are paying rental prices now that absolutely could have paid for a house 5 years ago. But now they are paying a dangerously high portion of their income. The problem is that their rental prices that they pay now wouldn’t make the payments on the house today.