The period is among the most difficult in history, questions that I ask myself and that I receive by email from you users are many, a question in particular turns in my head: but how do people pay home rent and landlords?
Coronavirus is strangling health, our lives, work and consequently also the home that has always been seen as the hub of the family while for owners a safe and tangible investment. I remember my granny telling me she buys a property that is safe, do not buy stock of a company that today is worth 5$ and tomorrow maybe 3$.
To give you a few numbers in America the unemployment figures speak of 25%, in the calculation there are both active and passive workers or those who are not looking for job in Europe I do not express myself because countries of European Union do not seem very close to each other. How do they or how will people pay rent?
On March 27, Donald Trump signed the 2 trillion dollar Cares Act allowing to help tenants pay rent, and this act also helps state governments and public housing providers. But in Italy the movie is different, families have to take money out of their savings to pay rent, indirectly a “conflict” has been created between owner and tenant.
I’m exaggerating though the coronavirus is negatively affecting this owner-tenant relationship, solutions there are such as:
- A rental discount
- Postpone payment date
- Reduce the price of rent
This is the best scenario always provided that tenant, if he does not find work or salary reduction will not be enough to cover the rent costs, he will be forced to leave the house. The owner will have time notice (depending on the contract) to find another person and believe me it is not easy, the problem is likely to repeat with the next : unemployment – I struggle to pay rent.
Let me give you an example, a family man with a wife and son, if he were to lose his job, do you think the savings would use them to make the family eat and survive or pay home rent? Unfortunately a difficult situation has arisen and believe me, we are only at the beginning, try to imagine this movie scene: if you mix together artificial intelligence,5G, robot the result is that in a few years job losses will be strong.
Companies will need fewer and fewer workers, robots will be able to work 24/24 without problems, improve skills with machine learning and produce more, if don’t believe me take a ride on YouTube. Real estate market has always been a safe investment, unfortunately society is changing radically, we hope that governments support tenants with both rent and landlords, if not, the situation will become unsustainable.
As for my predictions, I do not want to scare you,but simply open your eyes and make you think in a different way, you can check on YouTube some videos from MIT and look at robotics development. Enjoy!!!