How housing became the world’s biggest asset class

Re:How housing became the world’s biggest asset class by aianus on Wednesday January 22, 2020 @05:53PM (#22122951)

My landlord was definitely losing money (on a cash flow basis) renting to me in Toronto -- rent did not cover mortgage interest + condo fees + property tax.

He was just gambling on real estate appreciation and using me to cover most of his carrying costs; I would rather gamble on stocks.

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Re:How housing became the world’s biggest asset class by chii on Wednesday January 22, 2020 @11:54PM (#22124972)

usually investment expenditures can be tax deducted, so your landlord is also using this expense as a way to lower his tax rate. It's effectively transferring income tax into capital gains tax (which presumably is lower and more efficient).

By making the rent slightly lower, the landlord is sure to get a renter to cover most of the costs. But if the economic situation declines (or interest rates rises), he can just bump up the rent to cover the increase.

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