The leasing is a exception

Discussion in 'General Property Investment Discussion' started by nma642003, May 21, 2019.

  1. nma642003

    nma642003 New Member

    1- It is shame to any governments if it consider leasing is a solution because it economy harm and Social dysfunction , the rental value represents to the tenant burned money ant to the owner money without effort , the word housing means the accommodation , tranquility
    Any body can feel the difference when living in rented apartment and apartment owned by him . So the rented apartment is only shelter.
    2- the increase in the rental value during rent contract or renew it ia void and usury
    why it is void
    if permitting a rental value increase upon renewal of the contract under the pretext of changing the condition of life or higher ,why did not the lessor demand to compensate for price increases during the first decade , the right it is not permissible to raise the rental value during the period of the contract as is customary . This is because there is no more benefit for the tenant to pay an increase in the rental value , wgy the lessor requests from the tenant increase upon renewal ?and the lessor depends on his power at the end of the decade .
    The tenant is obligatory agree to the increase because may he and his family linked to the rented housing unit and the transportation of his goods and furniture is high or due to the difficulty of fining an alternative apartment .
    why it is usury
    rent contract is compensating contract .
     
  2. Longterminvestor

    Longterminvestor Active Member

    I think you are missing one very important factor. If the annual rent is say £5000 and costs are £4000 then there is a £1000 profit. However, if, as you suggest, rent does not rise we will still see costs rise. If inflation is 5% for arguments sake then costs will rise to:-

    Year 1 £4200 which reduces the annual profit to £800

    Year 2 costs £4410 which reduces the annual profit to £590
    Year 3 costs £4630 which reduces the annual profit to £370
    Year 4 costs £4861 which reduces the annual profit to £136
    Year 5 costs £5104 which reduces the annual profit to -£104

    So after year five with no rent increases the costs are greater than rental income. What investor in their right mind would invest if this was the scenario? The conclusion:-

    No homes for people
     
  3. nma642003

    nma642003 New Member

    1- I do not know what of the rent cost, if the tenant must pay it plus the rent
    but i will speak in general and I WILL give you the solution ( a new rental formula) .
    if permitting a rental value increase upon renewal of the contract under the pretext of changing the condition of life or higher
    this pretext is the same from the usurer , get us make comparison between rent and usury
    the money is a man need,, the lease is also man need
    usurer taking money monthly or yearly, also the lessor
    the borrower returns the debt after the end of the lending contract period or when he has the ability to pay, tenant returns the apartment after the end of lease contract or obtaining another
    the usurer takes profit without any work, the lessor takes rent money without any work
    it is same.
    rent process is selling the benefit of the apartment like selling a car , so what is more benefit to the tenant to pay more money
     
  4. lookinginvest

    lookinginvest Member

    At the end of the day what investor would risk their money (and any investment is a risk) for no return? I think you are living in a socialist dreamworld where money grows on trees. Socialism - easy to spend other peoples money but what happens when it runs out?
     
  5. nma642003

    nma642003 New Member

    I think you are living in a socialist dreamworld where money grows on trees. Socialism
    I against it
    let talk about the solution and resume talking about the post
    first : the role of the state must change from secure to empowerment .
    second : we must use rental real estate pound instead the local currency at contract and you pay by local currency .
    How
    a- the government makes social economy research to discover the average rental value for one square meter ( assume it 4 $ )
    b- the government look for 3 weights of 3 items you can buy it by 4$ ( assume by 4$ you can buy 1 kg of rice or 1 kg of sugar or 1/2 kg of honey)
    c- the rental real estate pound will = 1/3 prices of ( 1 kg of rice or 1 kg of sugar or 1/2 kg of honey)
    d- every 1/1 and 1/7 every year the ministry of housing announces the value of rental real estate pound.
    e- assume i will rent a apartment ( its area 200 square meter ) and the rental real estate pound at time of contract is 5$
    e- I will rent the apartment by two rental real estate pound. for
    square meter( no pricing )
    f- the rental value will be fixed by rental real estate pound but the monetary value will be changed depend on the market ( the change of rental real estate pound .
     
  6. diyhelp

    diyhelp Active Member

    When you set these rent rates surely this method is flawed as costs outside of your control will rise during that period. Potentially wiping out a large chunk of net income - the less return available the less people will invest.
     
  7. nma642003

    nma642003 New Member

    the less return available the less people will invest.
    it is required because the real estate investment is interior investment and it is harm.
    When you set these rent rates surely this method is flawed as costs outside of your control will rise during that period
    yes it can rise or down depending on the market without any power from the landloard during rent period , it is fair formula
     
  8. nma642003

    nma642003 New Member

    What Is Inflation?
    Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time. It is the constant rise in the general level of prices where a unit of currency buys less than it did in prior period
    rent is selling the benefit of housing unit ,so why only the tenant bears the inflation .
    a- if I bought a car by 5000$ and inflation happened , can you ask me for addition money . sure no . also tenant
    b- all the religion fight usury , all governments fights a descend of wealth because it harm to economy and community . AS example in Germany there a guided prices for rent , in UAE THE MAXIMUM RENT INCREASE OF 7% ANNUALLY
    c- in civil law the tenant look like a cow belonging to the landlord , the landlord increases as he wishes .
    d- my suggestion is fair because monetary value increase by the market itself , not as the owner wish
     
  9. FWL

    FWL Member

    Once you starting interfering with free markets the whole thing starts to crumble. Comparing the purchase of a car to the purchase of a property is crazy. A car has a limited life cycle while a property could in theory be there for hundreds of years. A car is not an investment, it is a necessity, a property is an investment whether buy to let of buy to live there.

    Lets not forget that tenants are free to move on to another property if they so wish. Your argument is a mix of socialism and capitalism - you cant pick and choose which bits you want.
     
  10. nma642003

    nma642003 New Member

    Once you starting interfering with free markets
    free market , I mean the increased is controlled by market after the agreement at start of rent , it is not important to follow capitalism or socialism , the important is the humanity.
    Comparing the purchase of a car to the purchase of a property is craz
    I made it as example say housing unit instead car

    A car is not an investment, it is a necessity, a property is an investment whether buy to let of buy to live there.
    car also is an investment when you sell it the housing unit is a necessity more than the car because i can use public transportation but without housing I will sleep in street.
    tenants are free to move on to another property if they so wish.
    the tenant usually compelled to stay due to its connection with his location or due the difficulty of finding an alternative apartment .
    look
    satisfaction is the desire a thing and praising it . Satisfaction is more related to meaning of choosing , but the presence of choice not necessary , the presence of consent is,. No doubt that forcing is eliminating consent but does not eliminate the choice
     
  11. realdeals

    realdeals Active Member

    The benefits of a free market include freedom of choice and markets will dictate rates. If there is no sensible return for an investor then properties will become more scarce and increased demand will push rental prices even higher.
     
  12. nma642003

    nma642003 New Member

    by leaving the people to themselves in what they want in contracts in accordance with their wishes and whims does not end . The people may disobey the constrain or limits of our god, equability or the prejudice ignorance and usury apply in their contracts .
    in my working paper there is no pricing .
    at the edit the contract dictate the rental value as like for any period but in case renwal the contract you can not increase the rental value as you like because the tenancy is compensating contract, so is the monetary value is fixed the rental value will be less . yes
    but the use of inflation is not good and the owner use that as pretext to increase the rental value as they like, but the use of rental estate pound( by use it may be there increase in rental value although the rental value estimated by it is fixed) is better than inflation rate for the tenant and owner and the community .
    i will explain soon
     
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