anyways, i think a lot of organizations that could build housing are a bit reluctant mostly for that reason. a company thinks “if i build a house today, there’s a good chance that there won’t be demand for that house in 30 years, so it might not pay off”.
First of all, that would only apply to companies with a build-and-hold business model, not to ones that develop a property and then sell it off to owner-occupants. Clearly, there do exist people who want to be owner-occupants, so the real issue is how to construct the regulations etc. to incentivize the latter business model.
Second, even build-and-hold companies wouldn’t give a fuck about 30 years from now; the asset would be fully depreciated by then anyway. If you’re in business to make a profit, you’re looking to do it way sooner than 30 years.
First of all, that would only apply to companies with a build-and-hold business model, not to ones that develop a property and then sell it off to owner-occupants. Clearly, there do exist people who want to be owner-occupants, so the real issue is how to construct the regulations etc. to incentivize the latter business model.
fair point. i had completely not considered that. especially as we were discussing blackrock which is a buy-and-hold business model.
First of all, that would only apply to companies with a build-and-hold business model, not to ones that develop a property and then sell it off to owner-occupants. Clearly, there do exist people who want to be owner-occupants, so the real issue is how to construct the regulations etc. to incentivize the latter business model.
Second, even build-and-hold companies wouldn’t give a fuck about 30 years from now; the asset would be fully depreciated by then anyway. If you’re in business to make a profit, you’re looking to do it way sooner than 30 years.
fair point. i had completely not considered that. especially as we were discussing blackrock which is a buy-and-hold business model.