3 ms·

Value and access to cash. I might value the end of the racetrack at $1million, but only be able to put up $20,000.

• AnthonyMouse 5y ago
  What you're really getting at is that the end of the racetrack might increase property values by quite a lot, even if the existing residents don't have the money to make the investment. But then someone else could do it. Rich investor goes around to everyone in the neighborhood and offers to buy their house for $25,000 over market, contingent on enough people (including the racetrack) agreeing to sell to make it worth their while. Then if that many people sign up, they resell all the properties for a profit now that the racetrack is gone and all the property values have gone up by $50,000 each. The result is that the people who live there now might not be able to live there after, but that's only because the racetrack is the reason they can afford to live there now. Otherwise the property would have been more than they can afford from the start.
  • lazyasciiart 5y ago
    No, what I was getting at was your incorrect statement that the market will make sure whoever values it more wins.
    • AnthonyMouse 5y ago
      But they do win. They just win by selling their house at a premium to someone else who can resell it for even more once they buy out the racetrack.