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Amusing thing I remember in the aftermath of the Savings and Loan crisis. They over built commercial real estate in the South Bay. And after prices per sqft dro
by Gibbon1 3y ago
Amusing thing I remember in the aftermath of the Savings and Loan crisis. They over built commercial real estate in the South Bay. And after prices per sqft dropped dramatically. You could rent small office space for 60 cents/sqft.
Good time to be a small business. Bad time to be a landlord. Landlords don't create value, small/medial/large businesses create value. And excess rents are a real impediment to actual productive businesses.
So rents in SF/Bay Area dropping would be very beneficial to San Francisco.
- RestlessMind 3y ago> Landlords don't create value, Please explain your logic because it doesn't seem to match reality. From what I see, there can be 3 types of landlords: those who built a house from scratch (obvious value creation), those purchased the house from someone else (value transfer; but that needs the buyer to hold alternate value in the first place) or inheritance (yeah, one just got lucky with right parents). Only the 3rd category seem to match your statement and I agree that inheritance should be heavily taxed. But the first 2 categories? Landlords have literally created value or exchanged their created value for a house.
- Gibbon1 3y ago> those who built a house from scratch That's called a developer not a landlord. > those purchased the house from someone else Transfer of ownership doesn't create anything.
- RestlessMind 3y agoYes but you need to have some value of your own to transfer to the party selling the house in return.