6 ms·

What's 10x is not the house, but the land, the physical space the house seats on. The land is a finite resource, thus it can only appreciate in value.

baq 5y ago
Only if population grows. Land will depreciate if there are less people to live on it.
- snidane 5y ago
  In the 21st century, even if country population stagnates or even drops, population still grows in cities compared to rural areas.
liketochill 5y ago
Not just land, but land in desirable places with amenities like roads, sewer, water, power, schools, food stores near by.
Spooky23 5y ago
Only if the capital is available. Speculators tend to use borrowed money to do their thing and drive prices up. Good times until they’re not, then boom. I have family who made a fortune off the backs of people living under this delusion in the 1980s and the 1960s.
batshit_beaver 5y ago
To add to this, it's not even necessarily true that the value of land itself is up 10x. It could very well be that the value of dollar is DOWN 10x. The effect on price tag is exactly the same.
- imtringued 5y ago
  By that logic the value of all consumer goods is down by almost 10x as well.
nickff 5y ago
>"The land is a finite resource, thus it can only appreciate in value." This is a non-sequitur; lots of things are limited, but often collapse in value. As a former Saudi energy minister once said: 'the stone age ended, but not for lack of stones'.
- max47 5y ago
  land is the one thing almost never goes down because we can't create more of it. for almost every other aspect of our lives, they are alternative solution to the problem but you can't create more land. Building vertical to increase density is only kicking the can down the road in a context where the humain population is always increasing.
  - jpetso 5y ago
    Well, apparently worldwide population will peak sometime and then slowly fall. The mitigating factor being that it probably won't happen in most of our lifetimes yet. That said, some countries might experience their population plateauing sooner than others. So perhaps if we kick the can down the road for a while longer, it will indeed have been enough.
    - max47 5y ago
      > That said, some countries might experience their population plateauing sooner than others And all of these countries (except japan/Switzerland) are planning to bring more immigrants in to make sure the population is always increasing faster. Something that most people in first world countries don't realise is that the entire population of their country is smaller than the number of millionaires in china+india. Even if all if america+EU became sterile, there would still be enough foreigners to buy more unit and push the bubble further if they open borders. And they would, because the entire economy depends on it.

baq 5y ago

Only if population grows. Land will depreciate if there are less people to live on it.

snidane 5y ago
In the 21st century, even if country population stagnates or even drops, population still grows in cities compared to rural areas.

liketochill 5y ago

Not just land, but land in desirable places with amenities like roads, sewer, water, power, schools, food stores near by.

Spooky23 5y ago

Only if the capital is available. Speculators tend to use borrowed money to do their thing and drive prices up. Good times until they’re not, then boom. I have family who made a fortune off the backs of people living under this delusion in the 1980s and the 1960s.

batshit_beaver 5y ago

To add to this, it's not even necessarily true that the value of land itself is up 10x. It could very well be that the value of dollar is DOWN 10x. The effect on price tag is exactly the same.

imtringued 5y ago
By that logic the value of all consumer goods is down by almost 10x as well.

nickff 5y ago

>"The land is a finite resource, thus it can only appreciate in value." This is a non-sequitur; lots of things are limited, but often collapse in value. As a former Saudi energy minister once said: 'the stone age ended, but not for lack of stones'.

max47 5y ago
land is the one thing almost never goes down because we can't create more of it. for almost every other aspect of our lives, they are alternative solution to the problem but you can't create more land. Building vertical to increase density is only kicking the can down the road in a context where the humain population is always increasing.
- jpetso 5y ago
  Well, apparently worldwide population will peak sometime and then slowly fall. The mitigating factor being that it probably won't happen in most of our lifetimes yet. That said, some countries might experience their population plateauing sooner than others. So perhaps if we kick the can down the road for a while longer, it will indeed have been enough.
  - max47 5y ago
    > That said, some countries might experience their population plateauing sooner than others And all of these countries (except japan/Switzerland) are planning to bring more immigrants in to make sure the population is always increasing faster. Something that most people in first world countries don't realise is that the entire population of their country is smaller than the number of millionaires in china+india. Even if all if america+EU became sterile, there would still be enough foreigners to buy more unit and push the bubble further if they open borders. And they would, because the entire economy depends on it.