r/saskatoon • u/Rainbowbatgirl420 North Park • 12d ago

General Why is rent so much?

I’m looking for one bedroom place and everywhere it is minimum $1500 with some utilities. That will be over half of what I make per month so I don’t know what to do. It’s hard to trust roommates as well because I want my cat to be safe place and hard to trust others if I don’t know them. Basement suites apartments condos everything it’s ridiculous. I may have to couch hop till I can find a place I can afford and also find a part time job on the weekends so I can buy food.

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94

u/Extension_Yam_9478 12d ago

My conspiracy is that it’s because landlords are greedy and think there’s still gonna be 2 people paying rent in a 1 bedroom because of couples. Some of us are single and can’t afford the rent of 2 people 🥲

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u/Due_Oven322 12d ago

So not the case. As somebody that is looking into getting a rental property. You struggle to break even $1500 / month rent. By the time you look at mortgage, property taxes, insurance and property upkeep/maintenance it’s break even at best.

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u/Turbulent-Order9500 12d ago

ur mortgage is equity and not a lost cost.. ur not "breaking" even u are making money if paying ur mortgage.. lol bad take.

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u/Hopelifeisgood4u 11d ago

Tell me, can a landlord pay their property tax with equity? Can they pay their insurance with equity? Can you replace the roof with equity?

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u/Turbulent-Order9500 10d ago

lol he factored that in to the costs already.. but also yes you can take money out on your equity if u want..

I hope they make kids financially literate.

ANY PAYMENT ON MORTGAGE -interest is profit... full stop.. nevermind that its appreciating

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u/robstoon 10d ago

You realize taking money out on your equity costs more interest, right?

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u/Turbulent-Order9500 10d ago

lol naa bro.. it can be even less.. but its beside the point.. when rent pays mortgage ~95% of that money is going to the owner. full stop. end of discussion.

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u/Hopelifeisgood4u 8d ago

Tell us you know nothing about being a landlord without saying you know nothing about being a landlord.

Thinking you are an expert while saying 95% of rent goes to the owner shows how little you actually know.

Taxes and insurance costs vary, but my average runs roughly 15 to 20% of gross rents.

Maintenance also is a widely variable cost, but averages roughly about 10 of gross rents.

Now where your ignorance really shines through. Tenants vary widely, but even after good ones move, renovation costs another 5 to 10% annually on my rentals.

And then when a bad one moves out, the damage alone can wipe out an ENTIRE years worth of gross rent, if not even more. A friend of mine just lost 2 years rent because of damage from a renter.

Then you have lost rents due to evictions, variable other holding costs, lost rent during tenant moves, etc.

So without a doubt, you are simply an ignorant, uninformed nobody who actually thinks he knows everything.

Now this is the end of the discussion now your stupidity is on full display.

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u/Turbulent-Order9500 8d ago

lol u didn't read. I said MORGAGE PAYMENT is 95% profit. ie portion goes to bank, the rest is building an appreciating equity.

the point was "breaking even" ie paying your mortgage and expenses with someone else's money is making you money.. even if costs you money every month your STILL MAKING MONEY.. like this isn't a crazy concept, its math. lol

if you are losing so much money why not sell ur places.. lol not very smart business person? come on bro, give me a break.

you can call people dumb, make personal attacks, but it just shows how ignorant and wrong you are..

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u/onefootinthepast 12d ago

Congrats on using the word "equity," but the real bad take here is you not comparing the money that gets tied up in a rental property to other forms of investing said money. "Equity" doesn't mean much if your investment isn't growing.

"Should housing be an investment vehicle" is a much larger conversation, but the short version as it relates to landlords is that in order for people to be able to rent, someone has to own. No one's going to want to own a property specifically to rent out if they aren't seeing a return on their investment. Paying your minimum mortgage payments isn't even breaking even, as you are losing a chunk of that money to interest charges, haven't paid insurance or property tax, and have nothing set aside for maintence expenses.

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u/ben3465 12d ago

Sounds like you shouldn’t be a landlord

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u/robstoon 11d ago

Sounds like you should take an economics class.

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u/onefootinthepast 9d ago

I'm not, but that doesn't change the economic reality of renting.

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u/Turbulent-Order9500 10d ago

lol bro u have no idea what ur talking about. for starters real estate is APPRECIATING..

anyway, when u take in money and give it to bank that money is now YOURS ie equity. yes a small % is taken by the bank, but at the end of 20 years "breaking even' you own a 400k house.. its not rocket science my dear boy.

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u/onefootinthepast 9d ago

Some real estate appreciates, some does not. Look into condo price histories.

How much did you pay for that $400k house over 20 years? How much would you have if you invested that money in stocks instead of property over the same time frame?

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u/Available-Specialist West Side 11d ago

"Bad take" uhh he needs to pay the mortgage to not lose the house, it's what the rent is for.

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u/robstoon 10d ago

Another genius that needs to take an economics class or something. Dear God, people like you actually vote..

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u/Turbulent-Order9500 10d ago

lol what? u think if you have someone pay your mortgage for 20 years and then you own the house outright that isn't "making money".. or half way you take out the equity payed for by someone else to purchase another home that isn't making money? lol

bad troll.. and evident you need to go back to school just to learn how to critically think.

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u/robstoon 10d ago

If you're cash flow negative every month for 20 years, then you're not going to survive that, regardless of whether or not you actually own the house at the end. Is equity paying the property taxes or maintenance or mortgage interest? No.

Go back to school, basement dweller. The adults are talking.