I know. But language is politics. A rentier is a person who derives income from rent (land or other property). It is a name I find fitting. I don't want to use anything with the root "lord" to describe them, as such a person is not a "lord" of anything - not of the land, neither of others. Lessor is a neutral term. Rentier is a midly negative term, and I prefer to use it as long as it is not incorrect. Just like I always say "capitalist" and never say "employer" or, cosmos forbid, "job creator".Broomstick wrote:First, I'm wondering where the word "rentier" is coming from, as it is not one I am familiar with. Around here they're usually call "landlords" or, in legal documents such as a lease, "lessor" (as opposed the the renter, who is called a "lessee").
For us it just means paying common income tax on rent incomes. Property class is not changed.Second - there are sometimes downsides to renting out property you own. In our area that means increased government regulation and also an instant doubling of property taxes because now it's considered a type of commercial property rather than a residential one (which also accounts for some of the cost of rent).
True. If you cannot manage the property, pointless to have one. However, the management costs are controllable. I would say in any case it beats having to spend 30-50% of your wage on rent. This money is the money you lose forever. Even mortgages, hideous as they are, are at least a form of investment - you pay towards the property that can eventually be sold, and your losses are limited by its depreciation. In case of renting, all the money paid to the rentier is totally lost forever, 100% of it. Unless of course you're on social security and the state pays your rent... or the rents are very low because you live in government-provided "social housing" (there rents can be as low as the costs of house maintenance, because the state does not expect to make a profit, in practice such rents are extremely low, like ~3 times lower the market average).Sure, you can rent out property you own after moving to another city, but owning property subjects you to certain obligations and they can't always be done at a distance. There is also the problem that if you have substantial money tied up in one property you own purchasing another can be difficult.
Having nothing beats having something only when you can 100% rely on social safety nets. They are no longer strong enough anywhere outside Scandinavia, probably. If you have some property, you can always sell it, for example, if there are circumstances which require you to pay lots of money. Not a nice scenario, but prosthetics can often cost tens of thousands of dollars. If you have nothing, you have nothing.
The haves always have a better chance in such circumstances than the have-nots, at least under our current system. In an ideal world housing should not have been allowed to become an investment, especially such a lucrative one, but we are in the real world.