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> Property is and always has been a zero-sum game that soaks up capital but doesn't return anything. Why?
by ksclk 14d ago
> Property is and always has been a zero-sum game that soaks up capital but doesn't return anything.
Why?
- marcus_holmes 14d agoProperty doesn't produce anything. If I buy a house for $500K and sell it a year later for $600K, that extra $100K hasn't been added to the economy. Something else had to make that money. It's just speculation. Whereas if I invested that $500K in a company, the company makes things or provides services that add value. If the company grows to make my investment worth $600K a year later, that has actually been added to the economy. Note that I'm defining property to not include construction, which is a separate thing, that does add value.