2022 UPDATE- relisted at 799, I sort of figured this listing at $1.15m was a troll from the seller. He is still trolling me at 799, just somewhat less successfully.
I’m going to make an early prediction and that is the overheated land market goes down in the inner city. While cheap government manipulated interest rates remain low, the cost to build is getting too high in monetary terms and builder hardship in getting work done. This means risk is up and it isn’t a good time to overpay for land. Better to wait and have an opportunity to buy similarly overpriced land in another year when perhaps the commodities cost drops or somewhat normalizes. Our realtor friends like to downplay the true carrying cost of their overpriced listings because they market everything falsely as ‘revenue’ producing ‘holding’ property. A hilarious instance was noted recently where the land is supposedly valued at $1.125 million and it is claimed it produces $2k per month rent. In what world is that reasonable?
Revenue potential and the tenant wishes to stay. That’s a great deal for the landlord. The landlord can continue to subsidize the tenant by the $4k month difference between the rent and the cost to own the house. In realtor world this makes sense. In my world this is perhaps the worst land deal I have seen in 2021. Does that indicate a market top when you see outlandishly terrible deals? I think so. Also this awkward shaped lot isn’t great for redevelopment anyway. I’d not even buy this at 50% or its asking price.