Though, it’s important to bear in mind that not all of the 40% average landlord cut will be cash.
The amount that the landlord takes also depends on how long they’ve owned the property for. If you buy a buy-to-let home in London, at the moment you’ll only be seeing a ~2% rental yield. However, your mortgage costs will be ~fixed, at least for a period of time. However, because rent and the value of the asset inflate faster than the mortgage payments increase, the landlord’s cut of the tenant’s rent will steadily grow.
In other words, living in a co-op doesn’t give you much scope to donate more to effective causes if the co-op has just been set up. But if it’s been going for 20 years, there’ll be a much bigger surplus to go to GiveWell.
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Though, it’s important to bear in mind that not all of the 40% average landlord cut will be cash.
The amount that the landlord takes also depends on how long they’ve owned the property for. If you buy a buy-to-let home in London, at the moment you’ll only be seeing a ~2% rental yield. However, your mortgage costs will be ~fixed, at least for a period of time. However, because rent and the value of the asset inflate faster than the mortgage payments increase, the landlord’s cut of the tenant’s rent will steadily grow.
In other words, living in a co-op doesn’t give you much scope to donate more to effective causes if the co-op has just been set up. But if it’s been going for 20 years, there’ll be a much bigger surplus to go to GiveWell.