989. Third-degree decisions 

A concept for us to think ahead. 

Here’s an example:

Rent control sounds like a good idea for the people right? 

A solution to the problem of increasing rents. 

“No landlord can raise rents past 1,500 per month” 

Great. 

What about repairs to the property though? 

The cost of goods continues to go up,

The cost of labor continues to go up

Taxes and insurance continue to go up. 

How can the landlord make a profit? 

The landlord starts to neglect the repairs on their investment property – they can’t afford them. 

The property starts to become dilapidated, the roof is leaking, the paint is old, the appliances break, the exterior of the property is gross

And now a once pristine neighborhood is run down. 

The quality of the properties declines.

No one wants to buy the properties because of the rent control, the tenants can’t buy the properties because they can’t afford them, and they don’t fix them either because that’s the landlord’s job… 

Eventually the tenant stops paying rent, the properties get foreclosed on… 

The banks aren’t in the business of owning real estate or giving free housing to the people… 

Where do the tenants go now? 

A policy that was interned to make housing more affordable , destroyed the housing market and made it more expensive 

The opposite of the original goal 

There’s always third degree decisions, mind them and you won’t be as surprised when things come up.