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Topic	Would you want to own an apartment
Bartzyx 04/01/23 9:52:35 AM #29:	foolm0r0n posted... None of this has anything do to with US subsidies, except for the infrastructure thing to a small extent. A small extent? A 300 unit multifamily building on a single block requires 5001,000 feet of road to service it, while 300 single family homes (SFHs) require about 310 miles of road. The cost to maintain the miles of pavement, plumbing, electrical, and telecom infrastructure to all those homes is exponentially more expensive than to maintain the same for a single block. For all of this, everyone is charged the same rate per kilowatt-hour, per 1,000 gallons of water, dollar of property value, etc.. Businesses are required to provide mandatory parking spaces for all the SFH dwellers driving to their establishments, and most of them are unable to charge for parking (a textbook prisoner's dilemma), which means the price of the parking spaces (which condo owners use much less often) is baked into the rent and ultimately the prices. And then of course, as you touched on, the mortgage industry (backed by the FHA) has encouraged and subsidized suburban SFH development for nearly a century. foolm0r0n posted... Like this doesn't make any sense at all. The fact that you're surrounded by grass makes your $5k plumbing job cheaper than the condo's $5k plumbing job? Who falls for that? I didn't think ROI was that hard of a concept to understand. If land appreciates at, say 10% per annum, and the value of the physical structure remains constant (a generous assumption), then which $5k plumbing job has the greater return? And yet we tax the land (which increases in real value and requires no upkeep) and the structure (which will probably decrease in real value and requires substantial upkeep) at the same rate. All these things combine to provide a much higher cumulative return to the person whose property is more land and less structure. As a result, the SFH owner not only receives more in public benefit than their taxes and fees pay for, but also increases their equity at a much higher rate. --- Round 2 vs Nichols Go Dennison! <cite>Bartzyx posted [p:972559297] in Would you ... [t:80394907]...</cite> <quote>foolm0r0n posted... </cite><quote>None of this has anything do to with US subsidies, except for the infrastructure thing to a small extent.</quote>A small extent? A 300 unit multifamily building on a single block requires 5001,000 feet of road to service it, while 300 single family homes (SFHs) require about 310 miles of road. The cost to maintain the miles of pavement, plumbing, electrical, and telecom infrastructure to all those homes is exponentially more expensive than to maintain the same for a single block. For all of this, everyone is charged the same rate per kilowatt-hour, per 1,000 gallons of water, dollar of property value, etc..Businesses are required to provide mandatory parking spaces for all the SFH dwellers driving to their establishments, and most of them are unable to charge for parking (a textbook prisoner's dilemma), which means the price of the parking spaces (which condo owners use much less often) is baked into the rent and ultimately the prices.And then of course, as you touched on, the mortgage industry (backed by the FHA) has encouraged and subsidized suburban SFH development for nearly a century.foolm0r0n posted... </cite><quote>Like this doesn't make any sense at all. The fact that you're surrounded by grass makes your $5k plumbing job cheaper than the condo's $5k plumbing job? Who falls for that?</quote>I didn't think ROI was that hard of a concept to understand. If land appreciates at, say 10% per annum, and the value of the physical structure remains constant (a generous assumption), then which $5k plumbing job has the greater return? And yet we tax the land (which increases in real value and requires no upkeep) and the structure (which will probably decrease in real value and requires substantial upkeep) at the same rate.All these things combine to provide a much higher cumulative return to the person whose property is more land and less structure. As a result, the SFH owner not only receives more in public benefit than their taxes and fees pay for, but also increases their equity at a much higher rate. --- Round 2 vs NicholsGo Dennison!</quote> ... Copied to Clipboard!
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