Re:Sculpture of Housing Prices Ripping San Francisco Apart
by int_19h on Thursday July 21, 2016 @08:40PM
(#12141038)
Think about all the future and derivative opportunities, too...
Heck, we could do high-frequency house trading!
Re:Sculpture of Housing Prices Ripping San Francisco Apart
by 3s933x7dpsh on Thursday July 21, 2016 @08:47PM
(#12141054)
Of course it's an absurd analogy, there would not be much value if there is no underlying property you can make use of. But I think it illustrates the point well: if the high prices were caused by absent foreign investors, 101 would not be jammed.
More realistically, investors rent out the properties they buy. So a market with tons of foreign investors spending irrationally would have an undersupply of homes to buy and corresponding oversupply of homes for rent. Renters would get a great deal and buyers would get bad ROI.
Re:Sculpture of Housing Prices Ripping San Francisco Apart
by brc on Friday July 22, 2016 @12:01AM
(#12141625)
You could actually do that. If you sold options in an approved development with a five years delay in start time, you'd probably get in plenty of cash and not actually have any new residents. You could get a healthy market going in just the right to own an apartment in the future.
If we could prevent them from getting a visa to come at all, we could do the same thing and we wouldn't even have to build the building. Just allocate a few address numbers on ritzy street corners and sell the "buildings" to investors stashing Russian or Chinese black market cash.