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But a high or medium density plot in a low density area lowers the value of low density plots around it. A house on a quiet street with a decent view might be
by nitrogen 9y ago
But a high or medium density plot in a low density area lowers the value of low density plots around it. A house on a quiet street with a decent view might be worth X, but the same house becomes worth X/2 if a high-traffic, view-blocking apartment complex is built next door.
- ScottBurson 9y agoBut without the level of demand that created the need for that apartment complex, it would have been worth X/4.
- nitrogen 9y agoNot really. Imagine a wealthy neighborhood in a suburb. The value is the space and quiet.
- mertd 9y ago> A house on a quiet street with a decent view might be worth X, but the same house becomes worth X/2 if a high-traffic, view-blocking apartment complex is built next door. I disagree. The house might be worth less but the plot of land it is sitting on is worth a lot to a developer who wants to build a similar complex there.
- mmt 9y ago> The house might be worth less but the plot of land it is sitting on is worth a lot to a developer who wants to build a similar complex there. The problem is that this doesn't work in practice for individual homeowners. It would only work if all the homeowners who own those "plots" required by that developer are willing/able to sell at once, and that happens approximately never. Moreover, the value of the house isn't just important at the time of sale but also at times such as mortgage refinances. A drop (or lesser gain) in value can have real negative financial consequences well before any sale.
- nitrogen 9y agoPeople with houses don't want land, they want houses.