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That's a nice just so story for the cases in which a landlord benefits due to the success of his tenant. Now do the ones where the property value goes down beca
by mhb 8mo ago
That's a nice just so story for the cases in which a landlord benefits due to the success of his tenant. Now do the ones where the property value goes down because of any of a zillion other factors.
- lux-lux-lux 8mo agoCRE has historically provided very good and stable returns, especially compared to retail businesses who face extreme failure rates and risk; trying to compare the two is insulting.
- mhb 8mo agoSo retail business owners are just dullards who can't figure this out like you can?
- Supermancho 8mo agoI imagine most people are not capitalized, confidently practiced in it, or interested in that kind of business. Took 10 seconds to think about it.
- mhb 8mo agoMaybe spend the next 10 seconds thinking about comparative advantage.
- Supermancho 8mo agoDeflection changes nothing.
- lurk2 8mo agoI’ve worked with both. Retailers are not generally sophisticated investors; they don’t necessarily lose money, but if they don’t own the real estate, they are usually making less than they could have working a job and investing their earnings in an index fund. There is a similar trend with most small businesses outside of the knowledge sector. Real estate investors who buy, hold, or develop property professionally are almost always far more sophisticated, which is to say that they are more knowledgeable of the tradeoffs involved in their investments and can thus take calculated risks in order to achieve a particular outcome. People make suboptimal investments all the time. This can be the result of lifestylism (“I want to be a retailer!”), naiveté (“I’ll figure out the financials later.”), or path dependence (“I’ll become a retailer because it’s the only thing I know about.”).
- mhb 8mo agoYes. Fine. That's a more reasonable framing than that the goal of landlords is "to suck the lifeblood of people and businesses".
- carlosjobim 8mo agoWhat about it? Do property investors deserve guaranteed increase in asset value? Do other investors deserve that?
- mhb 8mo agoOf course not. It's your apparent assumption that property investors are not providing value because it's certain to go up or something.