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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: Moominoid who wrote (34467)6/26/2005 11:20:33 AM
From: Les HRead Replies (4) of 306849
 
OE rent is purely fictitious since these owners have no financial interest in the rent they report. No profit motive nor any incentive to recoup ownership costs.

The bureau also subtracts the cost of improvements and repairs, such as new a/c unit, from the rent figure. It's obvious those costs should already be included in the rent.

They also subtract the cost of rising utilities from the rent figure, assuming that the cost of utilities is always included in the rent and that the landlord always eats that cost.

I saw an ad in the Washington Post for a penthouse apartment that played to public's concerns about the real estate bubble. It had a large bold headline that read "Why buy when you can rent?".
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