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Right - and the wider context is that he started doing this at a time when banks flooded the world with credit and lots of other factors saw huge land price inf
by branchless 10y ago
Right - and the wider context is that he started doing this at a time when banks flooded the world with credit and lots of other factors saw huge land price inflation.
You get this in the UK all the time, property shows where people "do up" a dilapidated property over 6 months, then relist it. And guess what? It's gone up! It's gone up by labour cost + materials + background land price inflation. But they see it as a wise "investment".
- thaumasiotes 10y ago> guess what? It's gone up! It's gone up by labour cost + materials + background land price inflation. But they see it as a wise "investment". If you put your own capital and work into something, and its value increases... that's what an investment is.
- branchless 10y agoNo they are adding zero value, they are riding off the corrupt system and taking labour from others. Also in most casts they are not putting capital in, they are borrowing from a bank who create the debt. They are little more than outsourced debt collectors.
- thaumasiotes 10y agoYou specifically state that they are adding value. Going up by labor and materials means value has been added.
- branchless 10y agoYes but my main point is that the primary gain was on the land due to govt policy. These people are typically amateurs who basically paint a wall. Unskilled labour plus a few $K in materials == not much. Yet the gains are significant.