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Except that after those ten years, the value of the property will exceed $0. In fact it's rather likely to be worth more then than now, so it's actually an inve
by svantana 11y ago
Except that after those ten years, the value of the property will exceed $0. In fact it's rather likely to be worth more then than now, so it's actually an investment.
As Tony Soprano said, "buy real estate cus God ain't making any more". Demand is pretty certain to outstrip supply from here on out.
- jessriedel 11y agoLand isn't valuable because there is a finite supply. Only certain land is valuable because there are buildings and people nearby, which is why land out in the wilderness is nearly free. The prediction is based on the fact that individual cities grow, not that the total fraction of land occupied by humans becomes nonnegligible.
- MichaelBurge 11y agoThat quote makes a lot of sense in a country with limited land like somewhere in Europe. It doesn't make sense in the United States where we have large swathes of completely undeveloped land. Even useful farmland is only a few multiples of $1000/acre. Your quote would force them to appreciate in price 100 years from now, but on timescales shorter than that I don't see it providing any real guarantee. Just look at Detroit.
- rrrrtttt 11y agoPresumably, Google's core business has better return on capital than real estate, or else Google would have become a real estate shop.