American Real Estate

[Not98_6]

@Belgian_Pie

Really?

Yes, really.

[Belgian_Pie]

@OysterOmelet

I don’t raise the rent on my tenants. I raise it when they move out.

You never had tenants screwing up your property?

[OysterOmelet]

@Belgian_Pie

@OysterOmelet

I don’t raise the rent on my tenants. I raise it when they move out.

You never had tenants screwing up your property?

I have, but then I started requiring credit checks. Good predictor of whether he’s going to mess things up or not.

[Poundsand]

@Not98_6

@Poundsand

There’s NOTHING to support that you can extrapolate the numbers in the study you posted to today’s market with it’s much wider wage gaps.

There are wide wage gaps, but you haven’t offered anything to show that the 1% is relegated to a permanent class of people.

These stats are from 2012, but show me some stats that the source of the 1% has changed. It’s what one would expect, doctors, lawyers, managers
, and some we may not expect: The Top 1 Percent: What Jobs Do They Have? - NYTimes.com

good link. look at those percentages within those groups. 2-5% of most categories of managers (12% of a relatively small group in securities). 13%-27% of doctors. 3-14% of lawyers (with a small group in securities having 30%). 2-7% of accountants. 3% of real estate. 2-7% of management analysts. 1% of software developers. etc, etc.

so even amongst the relatively few jobs that even have a ceiling high enough to make it into the 1%, only a small group of those make it.

and i never said it was a permanent class (nobody, ever, has said that). but it ain’t the same as it was back in the day, and i don’t believe the 11% number if there’s no reasonable argument made that it applies today when the deltas between percentiles are so much bigger - isn’t it only logical that it’s harder to make it into the 1% if the delta between the 1% and the 50%, 75%, 90% etc are much bigger, even accounting for inflation?

edit: taking a look at the article associated with your graphic, it has a $380k figure for the top 1% in 2011. So in less than a decade, that bar has moved up almost $200k. And we want to pretend it’s as easy as it was to reach the top 1%?

[Not98_6]

@Poundsand

and i never said it was a permanent class (nobody, ever, has said that). but it ain’t the same as it was back in the day, and i don’t believe the 11% number if there’s no reasonable argument

I know you did not, but many (such as Krugman and Piketty), when those 2012 stats were relevant, referred to the one percent as representing a fixed structure rather than a fluid process. It’s not just the one percent. I cited other stats showing a wider participation in the economy than most would believe across larger percentiles.

At least until 2013 the one percent had quite a large number of differing participants over a ten year period (again quoting the same researcher and some IRS stats): No one stays in the Top 1% for long

I don’t think most people realized this due to the claims of the likes of Piketty, Krugman, et. al, who have been implying a rigid economy for many years.

So if I correctly understand what you are saying, you believe due to the recent expansion in wage gaps between the top earners and middle class that there is less economic mobility. I’ll wait for real empirical evidence before believing it. Because from my casual reading it looks like new wealth is being created all the time in the U.S.

[Poundsand]

@Not98_6

At least until 2013 the one percent had quite a large number of differing participants over a ten year period (again quoting the same researcher and some IRS stats): No one stays in the Top 1% for long

over $200k increase for the 2010 top 1% numbers in that article to the lowest numbers I can find for 2020. And you don’t think it’s becoming harder to hit that top 1%… I guess everyone can just find an extra 2 or 3 jobs making $200k+ a year and they too can be in the top 1% for a year!

@Not98_6

I know you did not, but many (such as Krugman and Piketty)

The numbers and participants are not fixed, but if you want to talk structurally… I’d bet dollars to donuts the majority of those making good money have a lot of advantages in their background.

@Not98_6

So if I correctly understand what you are saying, you believe due to the recent expansion in wage gaps between the top earners and middle class that there is less economic mobility. I’ll wait for real empirical evidence before believing it. Because from my casual reading it looks like new wealth is being created all the time in the U.S.

Yes, new wealth is being created all the time. But empirically, it’s concentrated at the top, and becoming more so. Just look at the wealth in the stock market and where it’s concentrated - it’s dropped close to 50% of the u.s. population from a high of 67% before the recession (the rich picking up the bargains), and the top 10% in wealth own some 84% of the assets in the market.

[Not98_6]

@Poundsand

Just look at the wealth in the stock market and where it’s concentrated - it’s dropped close to 50% of the u.s. population from a high of 67% before the recession (the rich picking up the bargains), and the top 10% in wealth own some 84% of the assets in the market.

Heheh… Well if we refer to that article from Kiplinger’s that Oyster Omlet cited, it’s no wonder some folks outside of the top 10% in wealth are out of the stock market. They did a lot of incredibly stupid things. If you read O-O’s link, some of these numbskulls had close to their entire portfolios in individual stocks and they were retired! That is really dumb (or to be more charitable taking on more risk than they should have). Also, after many bear markets a significant number of retail investors will stay out of stocks, sometimes for a decade or more. Same thing happened in 2001. I’m speaking anecdotally there. I did not look it up, but I know many financial porn outlets highlighted folks who were quitting the market for good. Again, this is mainly due to very poor investment practices.

Now, of course, I’m not claiming that makes up the entire difference. Obviously poorer folks are normally going to suffer more in a recession than folks with more money. But again there is a fluidity to it. I do know many young people (who would be considered net-worth poor or in debt [big housing loans] who are consistently putting away a decent percentage of their salaries every month into the stock market. They aren’t market timing, they aren’t stock picking. They are buying the “market.” They should fare just fine in 30-40 years, and baring divorce, or some black swan calamity, they should be able to join the upper-middle class, at least.

[jdsmith]

@tempogain

Reading lots of stories in local news about people getting shafted by that lately.

Landlords or tenants?

[tempogain]

Landlords having tenants that simply refuse to pay rent and engage in other bad behavior, secure in the knowledge they can’t be evicted.

[OysterOmelet]

@tempogain

Landlords having tenants that simply refuse to pay rent and engage in other bad behavior, secure in the knowledge they can’t be evicted.

I had this fear when I wanted to evict someone (it was bad because it was at the property I was at). There was an eviction moratorium (probably not as extensive as the NYC one). But my tenant was still paying rent, so I decided to wait until the moratorium was over. Eventually, he left on his own accord.

[OysterOmelet]

-AIRBNB-
For the most part, Airbnb has been a blessing for landlords. It means no vacancies for the rest of your days. It’s a trouble-free philosophy. When a tenant leaves, you can throw someone in there while you’re searching for a new one.

Here are the benefits:

1. At the median, a 1% increase in Airbnb listings increases rent by $9 per month. Thus, in addition to keeping the rent flowing, you can charge a higher rate.
2. At the median, a 1% increase in Airbnb listings increases your home value by $1,800. That makes perfect economic sense, because if you can charge higher rent a home becomes a more valuable investment.
   https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID3548974_code2171934.pdf?abstractid=3006832&mirid=1
3. It makes low-end motels cheaper, because there’s more competition. Studies have shown that Airbnb doesn’t affect hotels where they hold conferences, but does impact hotels and motels where they don’t.
   https://journals.sagepub.com/doi/10.1509/jmr.15.0204

Headwinds

1. Some counties and municipalities, including my own, are putting up jackass restrictions. Some counties in Maryland outright ban it, and some limit it to 60 days per year.
2. …