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Land is expensive. People that sit on land, in booming areas know this, and will either: - Not sell - Ask for ridiculous amounts As the old real-estate sayin
by TrackerFF 7y ago
Land is expensive. People that sit on land, in booming areas know this, and will either:
- Not sell
- Ask for ridiculous amounts
As the old real-estate saying goes: "Location, location, location".
Furthermore, land as has a pretty long-term maturing period. It can easily take 10-20 years for land to go from cheap to really expensive. Oftentimes that process involves rezoning of land, and eventually gentrification.
Lots of cities are plagued with the same levels of bureaucracy and regulations as SF, where it can take 10 years from planning to first shovel in ground.
You could have a perfectly fine spot of land in a major city, but because it's not zoned for your use, it's essentially worthless now - but everyone knows that it could be very valuable 10-15-20 years from now.
And lastly; There are tons of real-estate investors that focus 100% on these kinds of things.
- nf8nnfufuu 7y agoNone of the things you mention seem to support the original claim. The original claim was that landowners are basically just freeloaders, making easy money. Land presumably can't cost ridiculous amounts, only what people think it will be worth - how much money they can make with it. That it takes years to maybe appreciate, maybe not - wouldn't that indicate that perhaps it is not so easy to make money with it after all?
- wasdfff 7y agoSome landlords have seen their buildings value and the rents they can command go up well over 100%. There are landlords whose buildings were paid off decades ago. And all these landlords pay property tax on their purchased price, not the current value of the property. And I can tell you in LA county that you will absolutely not loose money on real estate if you ride out a business cycle. Its a perfect system designed for a parasite by parasites and supply comes to market in paltry controlled drips.
- nf8nnfufuu 7y agoIf it is a perfect system, again, why doesn't everybody do it? Just because of the property taxes? Everybody is free to buy land, no? Also I don't think people can just ask for arbitrarily high rents wherever they want. It is a gamble to buy in a location where rents will rise. People then only see the winners and not the losers and get envious. Take some risks of your own, then complain.