Neeta, I don’t agree with comparing the 4500 and 7500 figures.
1. A lot of the 7500 is tax deductible. With typical assumptions that is more like 5400 after tax.
2. Rents go up, mortgages typically go down from refinancing to lower rates or extending terms.
Rents as I noted are mooning but we don’t even know what market rents are anymore due to the statewide rent control. Even though it is full of exceptions, it still restrains their rents since exempt units have to compete with below market non-exempt.
Ultimately the law will only delay and smooth out rent increases. Non exempt units will raise rent by the max every year until they reach market rates.
It is also a wakeup call for soft landlords like myself of the risks involved in letting a rental get too far below market. No more “I can raise it later on if I meed to.” No telling when rent will be legally locked down. And there are definitely major landlords now subject to rent control who are far below market. E.g., Ocean Beach complexes with 1-bedrooms for $900-$1200 a month that would easily go for $1800-2200.
