[zozbot123]

The opposite is the case. High rent is a localized problem (mostly found in relatively dense cities) and UBI would go a lot farther in a low-cost-of-living area where rents are low as well. So, people who have no use for living in the city (not hyper-productive or anything) would gradually opt to spread out and rents would fall.

[pbhjpbhj]

High rent is localised? The whole of the UK has high rent AFAICT, our very poor city has high rent.

Rental means paying the costs of property plus paying profit to someone who is already well off enough to front some capital (or at least to get a mortgage) plus paying profits for the bank ... how could renting ever be reasonable priced in a system that requires those without capital to pay those with capital just because those with money already have enough money.

[isostatic]

After the price crash in 2008 we lost 40% on our 1 bed flat. Couldn’t afford to sell after a relocation (£60k negative equity after 1 year) so had to rent it out while we rented in a different city.

We just about made a profit on the flat - about £10 a week, but we didn’t have any times of no tenant, or any unexpected major bills.

Eventually price recovered enough that we could afford to sell (below what we paid, even ignoring inflation).

Not all landlords are raking it in.

[leetcrew]

> how could renting ever be reasonable priced in a system that requires those without capital to pay those with capital just because those with money already have enough money.

landlords aren't guaranteed to make money. it's true that monthly rent is almost always higher than the monthly mortgage payment on that property, but the landlord can only profit if, in the long run, the difference between the rent and the mortgage is greater than the overall cost of maintenance and possible devaluation of the property.

personally, I could afford to put a down payment on a mortgage if I really wanted a house where I live, but for now I am happy to pay extra for the ability to relocate at the end of the lease and to avoid the risk of actually owning a house.

[zozbot123]

Economically, the "cost of property" is a kind of rent (okay, mostly rent - you can subtract the actual cost of physically building the structure. But most of what you're paying is the pure rent of land.) It is this rent that decreases when the demand for being in a particular place falls.

[kurthr]

Yes, but then you have to regulate the spending of UBI on basic needs rather than debt service for payday cash.

[kenmicklas]

That's exactly the problem. It would encourage unsustainable sprawl to a massive degree.

[zozbot123]

Unsustainable sprawl is a side-effect of high rents. When rent is low, people tend to cluster naturally in order to minimize their costs (and hence, the burden they exert on the surrounding environment) because they can afford to - you see this happening even (perhaps especially) in tiny rural villages and towns, not just in the wealthiest cities.

[kenmicklas]

Yes that is exactly what I am saying. UBI would raise rents and therefore encourage sprawl.