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This is bad advice. Unless you own a significant fraction of the market, you'd make way more developing the second property than sitting on it.
by randyrand 11y ago
This is bad advice.
Unless you own a significant fraction of the market, you'd make way more developing the second property than sitting on it.
- deleted 11y ago[deleted]
- andy_ppp 11y agoYou wouldn't make more if at the same time everyone started developing properties... If we build enough properties to meet demand the price goes down which means there is never any incentive to do this. I'm saying scarcity is a very effective model for increasing prices. I mean in London you need a special mortgage when buying new build housing because usually the price you pay is far in excess of the market value - you can literally make a 20% loss if you sold it in the first year or two! Of course as we all know housing always goes up in value and that's built in to the price!! It feels as though you could build a huge number of houses in London but it never comes close to matching the required supply. In every other industry you would assume everyone should have a car and everyone should have a tv or computer, but within reason, everyone who wants to should be able to live in New York or London? We think that is insane.