You cannot have real estate as an investment (sometimes the only one without capital gains tax), and simultaneously people living around and hanging out. Investment real estate pushes permanent inhabitants out.

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throwaway-blaze a day ago | parent [-]

This is incredibly wrong.

Investment real estate has traditionally been a way for individuals and small landlords to build wealth over time. More recently, governments have decided that they want to add tons and tons of regulations to rentals, making it impossible for small landlords to continue to make a profit. Hence, they sell to big landlords who are impossible for tenants to deal with.

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skinfaxi a day ago | parent | next [-]

You are conflating non local and local government. Your town doesn't levy capital gains but your state or nation may.

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cowlevel a day ago | parent | prev | next [-]

Do you understand where that "built wealth" comes from? It doesn't appear from the ether - it's transferred from one person to another. In this case, it's transferred from a legitimate useful business to a rent-seeking investor who creates no value but holds value hostage. And if the amount of "built wealth" is too high, no business exists that can afford to pay it, and so it doesn't get "built".

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skinfaxi 18 hours ago | parent [-]

Wealth is zero sum?

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graemep 11 hours ago | parent | next [-]

Wealth from land ownership is zero sum.

	▲	skinfaxi 8 hours ago \| parent [-]
		Doesn't this assume land can't become more productive over time? Like was Las Vegas real estate as valuable when it was barren desert?

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lifestyleguru 17 hours ago | parent | prev [-]

Even worse, wealth is vacuumed up.

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asdff a day ago | parent | prev [-]

Traditionaly as in since what post redlining ban downzoning in the 1960s? No peasant was expecting their hovel to be an investment vehicle where they’d replace the doorknobs with cheaper furnishings and 10x their investment and somehow their peasant kids working peasant jobs would afford that.

I mean isn’t the whole rub the cost of housing is outpacing wages? Goes to show how short our historical perspective really is.

	▲	lifestyleguru a day ago \| parent [-]
		> No peasant was expecting their hovel to be an investment vehicle It is not:) There had been a fortunate coincidence of factors such as economy, job market, demography, immigration from EU countries which all enabled it. That's all over now, it's gone. What happens when all rent is extracted? We're about to find out.