6 ms·

I think most people in the US find it more expedient to use cash for the land, rather than take in-kind compensation. Consider, for instance: where will you liv

I think most people in the US find it more expedient to use cash for the land, rather than take in-kind compensation. Consider, for instance: where will you live while your apartment is under construction? And, can you actually trust the value that the developer touts, attached to the new apartment? Financing for this sort of up-front buyout will be readily available so there is no major barrier.

lbrito 6y ago
>where will you live while your apartment is under construction? Maybe my wording was confusing, but this kind of thing won't really happen. If someone in a large city owns a patch of land that is big enough and well-located enough to become an apartment complex, then that person(s) is usually wealthy enough to have other real estate already. Its seen as an investment, not as a more affordable way to own an apartment.
- fennecfoxen 6y ago
  Ah. I had assumed that part of the Greek setup came from relatively small owners with an individual plot of land and a much smaller owner-occupied building on it. Perhaps this is expectation is in error!
csomar 6y ago
Credit is insanely available in the US. Developers can get a significant loan; which is a better deal than channeling your apartment through such a scheme (assuming selling is easy).
- iguy 6y ago
  Right, this sort of scheme is a great way to get things done without a lot of formal banking & legal machinery. And it's pretty resilient: if building is interrupted by (say) political unrest, or there's an episode of hyperinflation in the middle, everyone understands the deal -- the landowner still gets his 2 flats when it's done.
RcouF1uZ4gsC 6y ago
> Consider, for instance: where will you live while your apartment is under construction? It many parts of the world where this is practiced, there are strong familial ties and obligations. No one would think twice of living with a parent or sibling while the apartment was under construction.

lbrito 6y ago

>where will you live while your apartment is under construction? Maybe my wording was confusing, but this kind of thing won't really happen. If someone in a large city owns a patch of land that is big enough and well-located enough to become an apartment complex, then that person(s) is usually wealthy enough to have other real estate already. Its seen as an investment, not as a more affordable way to own an apartment.

fennecfoxen 6y ago
Ah. I had assumed that part of the Greek setup came from relatively small owners with an individual plot of land and a much smaller owner-occupied building on it. Perhaps this is expectation is in error!

csomar 6y ago

Credit is insanely available in the US. Developers can get a significant loan; which is a better deal than channeling your apartment through such a scheme (assuming selling is easy).

iguy 6y ago
Right, this sort of scheme is a great way to get things done without a lot of formal banking & legal machinery. And it's pretty resilient: if building is interrupted by (say) political unrest, or there's an episode of hyperinflation in the middle, everyone understands the deal -- the landowner still gets his 2 flats when it's done.

RcouF1uZ4gsC 6y ago

> Consider, for instance: where will you live while your apartment is under construction? It many parts of the world where this is practiced, there are strong familial ties and obligations. No one would think twice of living with a parent or sibling while the apartment was under construction.