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"the units that used to be mid are now near the bottom and have to lower their prices" Nah, what actually happens is the lower rung housing is either flipped t
by forgetfreeman 4mo ago
"the units that used to be mid are now near the bottom and have to lower their prices"
Nah, what actually happens is the lower rung housing is either flipped to capture the increase in area pricing or the lot gets scraped, again to capture the increase in area pricing.
- laughing_man 4mo agoThat's not the way it works. The "increase in area pricing" is just the result of adding new units. The older ones don't go up in value, so there's no increase in value to capture.
- forgetfreeman 4mo agoThat's absolutely how it works, I've benefitted from the process several times in some areas and been entirely locked out of the market in others. You might need to closely examine the process (and margins) around house flipping if you're confused on this point.
- laughing_man 4mo agoThat's not how it works in my experience. And I'm old.
- forgetfreeman 4mo agoI've made the bulk of my wealth in residential real estate, and I am likewise old.