Re:How to Profit from Rising Rents: Build Apartments
by varelse on Monday January 18, 2016 @03:13PM
(#10926594)
Except in places like SF where the victims themselves band together to maintain low inventory so they can justify their rent and eviction controls. And all because a minority of long-term residents live at below market rates and raise the hopes of the newbies that one day they too can be of the "renter gentry(tm)."
Re:How to Profit from Rising Rents: Build Apartments
by jedberg on Monday January 18, 2016 @05:57PM
(#10927637)
Absolutely (although you got the motivation a bit wrong). The renters who are against new housing are doing it solely out of lack of intelligence/education -- they don't understand that more housing means poor people can rent more housing, even if everything that gets built is a luxury apartment, since eventually equilibrium will be reached.
The owners who are against growth, who are the majority of those against growth, are doing it simply to prop up their real estate prices.
I'm probably one of the rare homeowners who is for more housing. I think my house is ridiculously overpriced and should cost 1/2 as much, and would if they would allow people to build. I don't care though because I bought my house to live in, not to retire with.
Assuming you build the place efficiently, you should still be able to make a profit, but that's the trick. A lot of developers right now are building luxury apartments with granite and fancy fixtures which look great now but will need to be replaced in a few years when they get worn out from mistreatment and don't look so good anymore or worse yet aren't in fashion anymore.