Alex Shlafman’s Post

Rent Pressure Zones and Rent Reviews (no allowable increase for landlords in rent pressure zones for the last 12 months) The change in the HICP index which the RTB uses to calculate allowable rent increases is now 0% for the last year. This means any landlord who wishes to do a rent review for the last 12 months will not be allowed to increase their rent. It really punishes mostly the landlords who were caught at below market rent when the rent pressure zone was introduced to their area. Most of these landlords were at lower rents due to a contract situation or in many cases were happy to leave sitting tenants at lower rents when everything was running smoothly. Little did they know that even in a market economy their ability to set rents was going to be taken out of their hands and the state in its wisdom was going to control their income. This is particularly unfair to said landlords with rents sometimes up to 50% below market rent. At least they had the comfort that they could increase rents tied to HICP index up to a maximum of 2% per annum to make up some ground on what they could be charging. Now that the 12 month change in this index is 0% they can get no increase even with a change in tenancy. Even if a new buyer purchases the property they still are stuck at the old rent. This is the face of ever increasing costs of maintenance, tradesmen, insurance, block management fees, etc. Price control never works and always has unintended consequences. In the case of the irish residential market it has incentivised existing landlords to leave and disincentivised new landlords to enter the market. Unfortunately we will see many more landlords exit the market thus worsening the supply of rental properties at a time of high demand. This is particularly true of houses rather than apartments where more often than not an owner occupier purchases an ex rental house, not another landlord and the house is lost to the rental market forever.

Florida’s housing market is a tale of two states. On the coast, condo prices are falling with residents being driven out by high insurance costs and assessment fees, while inland, the cost of single-family homes is holding steady. Local experts say this divergence is driven by soaring insurance premiums and rising assessment fees under new state regulations, which have significantly affected condo owners. “I am feeling a major slowdown in the market,” says Realtor.com® senior economist Joel Berner. “I feel like it’s a buyer’s market right now, unless the house is perfect and perfectly priced.” After years of demand and robust equity gains, Florida’s housing market is changing—but it might not be on a downturn. Realtor.com has analyzed the data to provide insights into the current state of Florida’s housing market. 🤔 Why the fuss over Florida? Florida is the biggest housing market in the country, with the most homes for sale. Despite California having almost twice as many residents, Florida has nearly double the number of home listings in any given year, accounting for about 1 out of every 8 listings in the U.S. Read on to learn more: 🌐https://loom.ly/kWHrMk0 Source: realtor.com

I saw this article from the NAHB today, which pointed me to the State of the Union address. No matter where you stand on the political side, you have to agree that housing prices need to flatten a little bit. And to do that, we need houses to sell. He mentioned some plans briefly, but they are key to providing the 2 million houses he hopes to add. I definitely don’t think we need more buyers, and giving more credits to first-time and first-generation home buyers doesn’t help. The idea to attract trade up buyers and downsizing buyers as a way to create more inventory is a good idea. The only problem is that the downsizer may end up targeting the same homes that the first-time home buyer is looking at. (Although hopefully, they have some equity in their house and they can buy something new and smaller and allow that family to trade up and right-size their home.) The credit for that kind of buyer may allow them to move if they are scared of the higher interest rates. It says that it makes the effective interest rate lower... but I’d like to see more data on that. The other things talked about are the change in regulations for building. One of the things they are targeting is more multifamily homes. This would be great for people looking to invest. Having more areas to rent will also help curb rental costs. The one thing I don’t quite agree with is the idea of more regulation to curb how landlords run their business. The thing is, the renter always has an option. They can go somewhere else. I know it’s easier said than done, but they also don’t have to rent that property with the “junk fees”. What do you think about the President’s idea to attack affordable housing? Would a credit help you right size? Would you ever consider partnering with an experience real estate investor to help grow your wealth? Check out the article from the NAHB and check the comments below to see the fact sheet directly from the White House. https://lnkd.in/g2XUGZex

As pandemic-related supply chain struggles and high costs of building materials begin to even out, builders have flooded the Florida market with new houses. However, the homebuying boom in Florida has slowed to a trickle as people return to office places and can no longer work wherever they choose. Add high home prices and high interest rates, coupled with difficulties obtaining home insurance, and the Florida housing market is beginning to level out, according to a recent Redfin report. 👇 https://lnkd.in/ddZkCzPq

Affordability Aside from a handful of metro areas I call on, most mobile home parks are charging very modest rates for lot rent I would say on average, 80%+ of the owners I talk to are charging somewhere between $300-$450 for a lot. I've even spoken to owners who are charging $100 per lot! You can't even get a storage unit for that right now. Even if you couple that with a mortgage on a home + utilities it is still the cheapest game in town to own a home in America Here's the average break down in our park: Lot rent: $350 Water/sewer bill-back: $45-50 Their own electric bill: $50-$75 We handle lawn(I know it needs a trim in this photo lol) They may have a modest insurance policy on the home Let's call it $550 all in We have several single/double wide homes with families living in them who own their homes free & clear (many good used homes can be purchased for $10k-$30k in some markets) So imagine a 2 parent household with a couple of kids where your monthly nut is around $550 or so with some maintenance costs of your home That means mom & dad need to come up with around $275 each a month to keep the fires burning. Pretty achievable. That's more $ in the bank for a trip, or a college fund, or a Christmas where santa doesn't bring the kids a bag of M&M's for a present MH parks are a great answer to the affordability crisis What do you think? #cre #commercialrealestate #mobilehomeparks #pioneerpropertypartners

THE PERILS OF HOME OWNERSHIP AND OWNING RENTAL UNITS As a homeowner for 50+ years, my homeowners and FEMA insurance premiums have skyrocketed to unparalleled proportions and many like myself had to install a new roof up to code--all for nothing--my premiums escalated without any discounts. Some people I know have cancelled their policies despite the financial dangers involved. Although major tornadoes have been evading Florida, most hurricane policies include tornado coverage. Landlords have seen the same increases and more including taxes and general costs like mortgage payments, maintenance, homeowners' association fees, etc. Regretfully, some of the renting owners went overboard to protect themselves while others increased the rents when renewing leases--some to cover overall increases, some due to the overall uncertainties or seeking the opportunity. What will happen to old-time landlords in each of the above scenarios when the brand new units flood the market with lower prices and other incentives? New laws seem to protect renters from eviction, etc. when landlords still have all the financial burdens of ownership--including the higher expense brackets of renting (mostly overlooked). In many instances, many landlords will lose their retirement investment and income. And many lending institutions will amass a good quantity of non-earning assets--negative ratios that the Federal Reserve will be dealing with... Usually, asking those lenders to sell the "doubtful" assets to reduce expenses while bringing cash in--at whatever cost or loss--to avoid a recurrence of the seventies' "real estate" big recession. Conversely, everything will magically resolve itself.

All Homeowners and Landlords should read this! Missed Ground Rent payments on Leasehold Flat can cost you your whole investment! 🗒️ Introduction to Leasehold – skip this bit if you know the basics and jump too the 🧨 In England, the Leasehold system is particularly common in cities, especially in buildings that are divided into flats or apartments. Under this arrangement, the Freeholder owns the land and structure of the building, while the individual flats are sold on long leases—often lasting 100 years or more. The Leaseholder (the flat owner) buys the right to live in the flat for the duration of the lease, but does not own the land or building itself. The Leaseholder is typically required to pay an annual ground rent to the freeholder, which is usually a small amount (around £250-£500 per year). This is separate from other charges, such as the service charge, which covers the cost of maintaining common areas (hallways, lifts, etc.), insurance, and general building upkeep. The Freeholder is legally responsible for the maintenance of the building, and they typically employ a block management company to handle these services, which are then billed to the leaseholders through the service charge. While Leasehold is a common system, it’s crucial for Leaseholders to keep track of their payments and obligations, as failure to do so can lead to serious consequences. 🧨 A Cautionary Tale: £400K Buy-to-Let Leasehold Flat Nearly Repossessed by Freeholder In a shocking case, a £400K leasehold flat was almost repossessed by the Freeholder over a relatively small amount of ground rent arrears. The owner, who had been renting out the property for 15 years, was sent a letter (out of the blue) regarding a summons for repossession. It turned out the flat was being repossessed because the ground rent had not been paid for two years—totalling just £480. According to the lease, any ground rent arrears over £350 could trigger repossession of the property. Despite the owner paying the service charge on time, she had missed the ground rent invoices because they were not sent by email and were sent to an old address after she moved house, and her post forwarding service had expired after one year. Crucially, the Freeholder did not make any attempt to contact her via email (which they had access to, through the Block Management Company, who were responsible for Service Charge payments). Instead, they sent the repossession notice directly to the rented flat, which the tenants might have discarded, and the owner might never have received it in time. Had this gone unnoticed, the owner could have lost her property. This case highlights the importance of staying on top of all correspondence related to leasehold properties, especially when it comes to ground rent, as failure to address even small amounts of debt can lead to catastrophic consequences.

Home prices are at an all-time high and a record number of renters are spending at least half their income on housing, according to a new Harvard University report. Just one in seven households that are renting can now afford the typical cost of a first home. High interest rates, supply constraints and growth in home insurance premiums are all driving housing costs. We need to be creative in how we design homes and communities, incorporating opportunities to improve quality of life while reducing lifestyle costs. https://lnkd.in/gUhZKE49

Home building down in Q1 but signs of growth – NHBC New home registrations and completions continued to fall in the first quarter of 2024 against the previous year, but with registrations increasing monthly during the period, according to NHBC. The new homes warranty and insurance provider cited prevailing economic conditions, skills shortages and the eighth wettest winter on record for the falls. For Q1 2024, it recorded 21,967 new home registrations, down 20% against Q1 2023. Of these, 13,633 were for private homes, a 21% drop. Those for the rental and affordable homes sector - despite housebuilders’ focus on affordable housing in a difficult market – also fell by 19% to 8,334 registrations. Nine out of 12 UK regions saw registration declines against Q1 2023. The biggest falls were in the East Midlands at -43%, Wales (also at -43%), and North West and Merseyside (-41%). Meanwhile, the three regions to experience rises were London (+2%), Scotland (+4%) and Northern Ireland and the Isle of Man (+23%). Registrations fell for each house type during Q1 2024. Those for apartments recorded the lowest fall at -12%, thanks to the “relative strength” of the rental and affordable sector. There was a 26% decline in terraced property registrations, with those for detached homes falling 24% and registrations for semi-detached abodes down 19%. The biggest fall continued to be for bungalows at -43%. Q1 2024 completions were down 13% against Q1 2023, at 26,240 new homes. Again, the private sector saw the largest fall here – a 19% decrease to 15,599 homes. Rental and affordable home completions dipped only 1% to 10,641. At the same time, month-on-month increases in registrations during the quarter suggested “tentative signs of growth”, NHBC said. “Housebuilders are cautiously optimistic and it is encouraging to see signs of growth, with a month-on-month increase in registrations since January,” Steve Wood, NHBC’s ceo, said. “This is despite a cumbersome planning system that continues to impede output and a national skills gap that means almost 225,000 extra workers will be required to meet expected UK construction demand by 2027.” Commenting on the year-on-year figures, he also said: “Our Q1 2024 figures reflect prevailing market conditions. Rises in the Bank of England's base rate have driven mortgage rates higher, leading to a drop in new home purchases and a slowdown in house price growth. “Prolonged wet weather has also hampered housebuilding output in Q1, with the south of England experiencing its wettest February since 1836, according to the Met Office, and many parts of southern England recording well over twice the average rainfall.” #NHBC #NewBuild #newhomes #newbuildnews #rsrrecruitment