Real Estate News – Page 64

While the U.S. confronts stagflation, communist China tries to hide massive real estate crash.

REAL ESTATE NEWS (Los Angeles, CA) — While real estate in the U.S. and other western countries crashes up today due to inflation, China’s real estate market was so extremely overbuilt that its prices are now tumbling dramatically. The communist regime does not release honest statistics, thus the books of western companies doing business in China provide the only accurate picture of China’s true economy. Recent new lockdowns also reveal the true story. The regime of nutcase dictatorship is seriously worried about recent bad economic results, thus uses today’s most convenient of scapegoats: covid hysteria. Today, China resembles a bizarre, frightening communist lockdown prison. Hellish! | VIDEO

The real estate market is still hot in many U.S. areas as families and investors all scramble to buy physical assets that can greatly hedge against runaway inflation, and protect against a falling dollar. In many other U.S. markets, a quiet crash or softening is already taking place, unreported in the news, and obscured by inflation. Indeed, a stagnating overall economy, Greater Depression of the 2020s, has been hidden behind a curtain of inflation for several years. One thing that can pierce the veil is a truly committed, rapid-acting Fed, which we don’t have while interest rates are still near historic lows, and government spending and money printing are still near historic highs. Concealed stagnation, government overspending and ballooning hyperinflation are still the name of the game for real estate and most other markets in the United States. Governments worldwide are failing to address the real issues, as they rely on fear and distraction, amid calls for optimism.

What is going to be the cure or the weapon that beats hyperinflation? The US Dollar is a goner for many reasons: The Fed is not keeping pace, and will not keep pace required to beat hyperinflation; the overused, abused US Dollar is losing its global dominance as the monetary standard; the dollar is being replaced by blockchain cryptocurrencies — and good money destroys bad. In addition to optimism, individuals, families and companies must own physical assets that perform well during inflation and stagnation, such as real estate, gold, farm land, blockchain cryptocurrencies, quality stocks, technology patents etc.

A worldwide economic depression began in April of 2020. China and the U.S. lead the way in the latest “cures”: denial, deception and cover-up. The key difference between U.S. thin veil of real estate health, and China’s undeniably poignant real estate crash: the unprecedented level of ponzi scheme activities in China real estate vs the more moderated, varied markets of America. The U.S. does have its own looming ponzi crash coming: the end of the global hegemony of the U.S. Dollar, amid emerging general demise of fiat currencies. Unlike communist China’s housing implosion, real estate in the U.S. today still provides an effective shield against these economic threats.

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China communist party uses deceptive zero covid policy to hide the largest real estate crash in history.

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

Does inflation spell the beginning of the end for rent control?

REAL ESTATE NEWS (Los Angeles, CA) — Many renters have no idea of what happens to rent control during inflation. Severe inflation obstructs or ends rent stabilization one way or another, because landlords must raise rents enough to account for inflation. In general, 7% inflation means that rents can go up about 7% per year. When inflation rises to 10%, 20% or more, that’s how much rents must eventually go up. If the city does not allow landlords to promptly raise the rent to cover inflation, then maintenance and enjoyment of the property suffers, as landlords must find other ways to make up for the shortfall. Whenever cities attempt to prevent landlords from recouping rising costs, property values drop, then neighborhoods suffer from increasing crime, budget deficits, deterioration and blight.

Rents can be increased up all the way to the market rate when a tenant: voluntarily moves out; does not pay rent and is evicted; violated the lease agreement and is evicted; is evicted for failure to comply with a Tenant Habitability Plan; is evicted per a City Attorney order or if the tenant accepts a Tenant Buyout Agreement.

Landlords may also raise rents when they hear that an additional tenant is moving in. Tenants may be charged by the landlord an expanding number of surcharges and fees to help pay for the growing rent control bureaucracy. Landlords may also charge the tenant for some improvements made to the unit, renovations to the building, hazardous material removal and seismic retrofit. Landlords may charge for unexpected increases in expenses that results from many costs, including inflation.

Landlords may also raise the rent to full market price by evicting the tenant if one of the following occur: Failure to pay rent; Failure to fix or address a violation of the rental agreement; Creating a nuisance or causing damage to the rental unit; Using the rental unit for an illegal purpose; Failure to renew a similar rental agreement; Failure to provide the landlord reasonable access to the rental unit; or if the person at the end of the lease term is a subtenant not approved by the landlord.

Additional reasons to evict the tenant and fully raise the rent include: The owner, or immediate family member will move into the rental unit; A resident manager will move into the rental unit; Demolition and permanent removal from the rental market; Government order; or Conversion to affordable housing. If the eviction is of no fault by the tenant, then the property owners may be required to provide some relocation assistance compensation.

Many property owners benefits from a plethora of exemptions from rent control, especially in Downtown Los Angeles. These include: luxury properties; properties that are privately owned by individuals; properties that are very old, very new etc. Most DTLA lofts have plenty of exemptions.

Big cities in California, such as Los Angeles, have a sprawling, growing bureaucracy that tries to help renters to keep rents somewhat stable. 64% of Los Angeles residents are renters, and many don’t understand that rent control and rent stabilization can only do so much to help temporarily. Eventually, the economic laws of supply and demand overrule any temporary government measures. Additionally, bureaucratic laws create additional costs, more administration fees and more legal costs, which eventually get passed on to renters. In the mean time, the supply of housing gets more constricted and limited if property owners are not allowed to charge market rates. That bureaucracy increases rents in the long run, as it causes artificial housing shortages. When the economy stagnates, homes are eventually vacated, run down and torn down, like we’ve seen in many neighborhoods of the rust belt over the last 30 years.

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Los Angeles, CA rent stabilization meets inflation: Which buildings have the most exemptions?

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, DRE 01889449. This is not to be taken as legal advice. Consult with an attorney regarding legal questions, and consult with the City of Los Angeles regarding local ordinances. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

Category: Real Estate News

China Leads Global Real Estate Crash

How Runaway Inflation Kills Rent Control

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