Furthermore, sweat equity is real. You can put sweat, blood, and 100k of materials into something and have an 300k asset. It doesnt matter if a desert lot was dirt cheap.
I find it funny when people forget you can create value yourself instead of passively investing in someone else who creates it.
You're the one that brought up value creation, not me.
If it's a "who cares" when it goes against how you want to spend, then it's also a "who cares" when it aligns with how you want to spend.
> Furthermore, sweat equity is real. You can put sweat, blood, and 100k of materials into something and have an 300k asset. It doesnt matter if a desert lot was dirt cheap.
> I find it funny when people forget you can create value yourself instead of passively investing in someone else who creates it.
A house nobody else wants has a value of zero dollars, and you didn't create value.
If that house is worth 300k, then I misunderstood your earlier description.
But this kind of situation is not what normally happens. Whether it's allowed or not doesn't really matter. The important case is what happens when people build/buy in areas with more than negligible demand.
But also in economic terms, if that house is in a zero-demand area and won't be on the market for decades, then it would be better if you don't build it, and instead either spend that money elsewhere or invest it.