Inflation and Rent Increase
Since I have a little property/real estate experience (mostly investing, renting on both sides, laws and paper), I understand some about real estate.
In our economy in Russia, inflation has become the norm. This year, inflation has been at about 9% for the country and 12% for Saint Petersburg alone. Luckily, most salaries have also increased on a level of about 16%. Unfortunately, this isn't the common raise that you might get if you stay at the same job. Otherwise, 2005 has been a major growth year for us.
So...I shouldn't be to surprised that my rent is also going up. And real estate agents being what they are (don't trust markets or others in this business--not even me), we have found that the rents for our area have actually gone up about 25%.
This doesn't sound quite right, since even salary has only gone up 16%, right? Of course, I'm right.
So, then we look at how this market works:
- People want to make as much money as they can from what they have (obvious)
- Agents drive both rent and sales markets and don't do area surveys, but merely raise the rent to the most that they can achieve in an area as soon as possible
- Money (yes, money is in both cases before, but they all still want more--it's good to always keep that in mind no matter which game is used to justify more money)
Thus, I understand a raising of rent, but it's at a somewhat ridiculous rate increases. (Ну что поделишь?)
Anyway, since I know not to trust the agent (or owner) in such cases and our calling and asking have produced results that say that all of the area is going up at about the same increase, we just still looking to see what we can do.
Unfortunately for me, I love my girlfriend very much (which is what got me into this apartment anyway--she loved it when she saw the view), and she prefers to pay to stay at least for a little while longer (and so my mother can see it). Personally, I don't want to deal with games that I have watched be played (but never accepted on myself before).
Sufficed to say, she is even willing to pay the extra (which we have down now to an $80 increase after checking around and convincing). Really, I can afford it, that's not the issue. Besides, it's 2000 rubles (although, our rent would also go back to US dollar amounts as before, rather than when the dollar began to fall we were paying at ruble amounts).
Trust me, if you're in this situation, be heartless and don't play the games. (My heart stands next to me, and it's hard to change it without some force, which makes me fell bad for breaking her. *Love's a bitch to be reckoned with.*)
OK, so, we're off shopping for birthdays (which are the 26th of December) and then my Catholic African friends' Christmas...and finally New Years (Russian gifts).
What a day.