How Tenants and Landlords Should Think About Covid-19 RentStrike(rentstack.co)
rentstack.co
How Tenants and Landlords Should Think About Covid-19 RentStrike
https://www.rentstack.co/blog/how-tenants-and-landlords-should-think-about-covid-19-rentstrike
1 comments
Thanks for taking the time to read my article. In this situation there aren’t any obvious winners except those with cash that will be able to buy properties and other assets at discounted prices given the cascade of selling we’re likely to see in the coming weeks and months. Banks will suffer with non performing loans across many industries and loan types. Banks also have compression of net interest margins with rates close to zero. But banks are in good shape going into this mess and will likely be backstopped by the federal government and will probably come out in a lot better shape than other stakeholders.
1. Renters may lose their jobs, unable to pay rent.
2. Some landlords have jobs and so have to cover the mortgage and such; but they might also lose their jobs, going into foreclosure.
3. Thus renters can lose their home that way, even if the landlord lets them go without paying rent.
4. Thus, who is the winner? Why money landlords: banks!
Banks are not out of a job; they get to take people's houses.
If you want a pandemic-proof racket, start a bank.