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I often lazily wonder who builds all the office space in large cities. I'd realised it was megacorps who are in it for the long haul, didn't think of it as back

I often lazily wonder who builds all the office space in large cities. I'd realised it was megacorps who are in it for the long haul, didn't think of it as backing pensions and similar assets. I wonder if a property startup might be possible in countries where property is far, far cheaper. Micro-loans, divided and pooled investments, that sort of thing. Particularly if funders from comparatively wealthy nations want to invest in "business with a conscience" type startups. In the charity sector, even. The returns might not be large, but that's not what all startups are about. For the more cynical, there may be off-shoring and tax benefits.

Maultasche 11y ago
Yep, I've worked at a pension fund, and they find lots of ways to diversify their investments. In addition to the usual stocks and bonds, they invest in real estate all over the US, owning a number of commercial high rise buildings in cities around the country. They have the money to finance these big building projects, and it the rent they generate usually provides them with steady returns over the long term. I hadn't heard of them investing in residential properties, but it wouldn't surprise me if they owned some.
brudgers 11y ago
The costs of construction are far less variable than the costs of land. Lower construction costs tend to correlate with higher maintenance costs. With real estate investment governmental stability and integrity play a greater role than many other investment types because real-estate assets can't be relocated or wire-transferred. All real-estate markets are local. It's a very specialized industry.